Community Health Systems Is A Value Trap
Mar. 21, 2019 11:26 AM ET
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2 comments
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About:
Community Health Systems, Inc. (CYH)
WY Capital
Long/short equity, special situations, contrarian, Growth
(218 followers)
Summary
CYH is one of the largest hospital companies in America, with $14bil in revenues, yet trades at a measly $500mil market cap.
However, it is barely profitable and its financial situation is quite precarious.
Political risk also poses a huge risk to its revenues.
Company has been mismanaged, with management making multiple bad moves.
Overall, investors should avoid CYH.
Community Health Services(
CYH) stock had declined heavily over the past few years, dropping from over $50 a share to under $5 currently. However, we do not think investors should see this as a buying opportunity, as there are numerous risks in this company's future, which make it uninvestable. We recommend investors AVOID this company.
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