Dynacq Healthcare DYII

Tuesday, December 09, 2008 | 2 comments »

Somebody is dabbling around in Dynacq Health DYII. The stock closed up about 20% today. Their balance sheet is even better now vs when I looked at them and some other low enterprise value to EBITA companies awhile back. Their long-term debt is about half of what it was at the beginning of the year. They have $29 million in net cash and $66 mil net tangible against a $56 mil market cap. There is a problem with settlements with insurance carriers. It seems worth following.

full disclosure: no position

2 comments

  1. Charlie G. // December 12, 2008 8:22 AM

    It's hard to read these charts with so low volume. But you are suggesting looking at this as a value investment not a day/swing trade. Looks like $3.75 is resistance from early November. Wonder if it will pull back or break through. The link from you previous post to the young guy involved in investing. He knows his stuff at 17.

  2. Mark Perkins // December 12, 2008 9:08 PM

    yeah it would be an investment. I'm not sure about it yet. It's just on my radar again. I don't know enough about everything going on with the company right now. It just looks cheap and their business seems like it should be non-cyclical. I just found a cheaper stock actually trading for less than its cash. working on a post on that.

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