Team Health Holdings Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Team Health Holdings (NYSE: TMH  ) rose more than 12% on heavy volume in early trading Wednesday for no apparent reason. Shocking.

So what: File this one under the "proof Mr. Market is the lunatic on the corner who shouts at the rain for stealing his balloons" file. How do we know there isn't more at work here? We don't, really, but I think it's telling that the stock had pulled back to being up less than 1% as of this writing.

Now what: In cases like these, there's usually some odd rumor or persistent innuendo driving the stock price to unreasonable levels. Here, it's probably more of the same momentum trading that sent the stock soaring three weeks ago.

My advice? Ignore the swings. Take a closer look at competitor MEDNAX (NYSE: MD  ) instead. Unlike Team Health, the stock trades for a discount to the long-term earnings growth that analysts expect.

Interested in more info on Team Health? Add it to your watchlist. You can also try any of our Foolish newsletter services free for 30 days.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is also on Twitter as @TheMotleyFool. Its disclosure policy is at least 10% better than other disclosure policies.


Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 10, 2011, at 10:57 AM, gojo2 wrote:

    TMH was up Wednesday on their better than expected earnings report in which they beat not only consensus EPS and revenue estimates they beat the street high. This is hardly no news and makes this article so far off it should never have been posted. Even if a person couldn't figure out whether or not the release exceeded expectations even the most novice inv4estor should be able to find an earnings release. The reason for the bi spike mid day was managmenet guidance ahead of estimates and pullback during the writing of the article was due to analyst Q&A questioning its validity. Much improvement needed here. Tim you should be ashamed.

Add your comment.

DocumentId: 1438597, ~/Articles/ArticleHandler.aspx, 4/20/2014 5:56:18 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement