AH meltdown

C

Chuck E. Cheese

This one tumbled more than 40% on Wednesday due to Federal investigation of unlawful collection practices on medical fees. Thurs - up more than 10% in the morning but retreated in the afternoon to a 52 week low @ $10.50.

Even with the drop, the PE is still 30+ and book value is $2-3. Surely the stock is still not "cheap".

Any thoughts on this? Shorting opportunity or long buying opportunity for the bounce? I'm in the first camp due to the price action but has some reservations that the drop is overdone.

Another stock which recently took a beating is YPF due to Federal expropriation of the majority stake (51%) from Spanish Repsol.

Opinions are welcome.
 
What's the reason for holding back the symbol? Typing MDRX isn't hard is you're gonna put down YPF as well.

Haven't done the fundamentals on MDRX, but have looked into YPF. The biggest risk with YPF is country specific discount, if the Kirchner adminstration decides to nationalize other companies, YPF is at best dead money. More than likely it will trade at a heavier discount. That dividend is already gone for anyone following the news, other common holders should be fine (ex-Repsol), but Argentina has a serious funding problem that can blow up in unexpected ways unless you know the country very well.
 
Quote from jj90:

What's the reason for holding back the symbol? Typing MDRX isn't hard is you're gonna put down YPF as well.
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He did put the symbol. It is AH.
 
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