Friday File, part two: One Post-Earnings Buy and Other Updates

Real Money Portfolio updates on NVIDIA, Premier, Tencent/Naspers, Sandstorm, and others...

By Travis Johnson, Stock Gumshoe, August 17, 2018

Since the other part of today’s Friday File is all about a biotech stock tease, I thought I’d start out this week’s look at my Real Money Portfolio stocks in that sector.

I avoid the drug developers, for the most part, but health care should be a huge sector and a growing one, in general, and I do want a pretty good allocation there… I let mutual funds do some of my heavy lifting in health care, but what about the individual stocks I own or have considered in this sector?

I wrote to you a couple weeks ago bout my new position in Teladoc (TDOC), and my opinion hasn’t changed since then, but I’d be looking for pullbacks to possibly add there once this rally gives up some steam — they have an Investor Day at the end of September, so that will be the next big potential news-generator. I’m guessing we’ll need just a general “risk off” crash in the market that drives down all the speculative tech stocks before I see an appealing dip in these shares, but you never know. Teladoc is, of course, very speculative and unlikely to be profitable as a company for at least a few more years… but it’s also in a segment where there’s real potential for something close to a “winner take all” result if they end up building the best platform for virtual/video doctor visits and continue to build on the success they’ve had in convincing both doctors and consumers (and insurers) to embrace virtuality.

The quiet health care stock in my portfolio, and the one I’m most interested in adding to at the moment, is Premier (PINC). They report next week, but optimism has been rising of late for Premier’s potential — particularly as they aggregate data among their member hospital systems to develop better precision analytics that help health care become, we hope, more efficient and effective. I bought shares of this one in the spring, following its mention as a compelling and unique owner of data… and because of its unique structure, in that it’s a coop that has gone public and is still controlled by its member hospitals. Past cooperative/member owned businesses that have gone public and eventually diversified their ownership structure further include Mastercard and Visa and the stock and option exchanges… all of which have been pretty good investments.

But Premier ...