# CML Healthcare (CLC.TO)



## Sherlock (Apr 18, 2010)

I want to diversify and I don't yet own anything in the healthcare sector so I'm looking at this. They're a provider of medical testing labs, not an area I know a lot about but I figure as our population is aging this should do well. Thoughts?

Dividend around 8%.


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## underemployedactor (Oct 22, 2011)

Thought I was the only one that followed this one. CLC ran into some problems with an expansion into the US which ended rather badly, and some concern earlier this year about their contracts with the Ontario Govt which turned out okay. As long as they can maintain their lab contracts with the Ontario govt, I would say that their yield is bullet proof. I still like it and hold it but it does require some monitoring.


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## al42 (Mar 5, 2011)

They sold most or all their stuff in the US.
http://www.theglobeandmail.com/glob...20111107&archive=ccnm&slug=201111080742714001

I bought a chunk of this hoping for stable yield and stable share price.
While the yield has been stable the share price certainly has not.

I'm hoping now that they got rid of their US operations the share price will now stabilize.


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## Financial Cents (Jul 22, 2010)

Own it in my TFSA.


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## cato (Jul 4, 2011)

CLC's venture into the USA was a disaster, their profit margin was, if I remember correctly, about 3-5% in the USA as opposed to 26-28% in Canada. Selling the USA operations, is a strong positive. 

The future growth for them in Canada would be in Imaging and when cross registration of physicians in Canada is finally through, and with digital imaging which can easily be sent from one place to another, their size alone should make them competitive.

Their laboratory work is more a bread and butter type of income with capped funding from the Ontario Health ministry.

They have just written off $50 million (equipment and goodwill) after selling their USA business and consequently their quarterly financials look bad. They seem to have their expenses under control now - about 2-3 yrs ago it was rising faster than their income.


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## webber22 (Mar 6, 2011)

The stock fell about 5% Friday afternoon after someone on BNN said he sold it and is now short the stock

This could be a great opportunity since the 7.7% dividend is safe based on the conference calls during the week when the fee changes were discussed. They actually said there was more opportunities in the private health care sectors based on the changes. The financials look good and I'll be adding to my small position


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## Sherlock (Apr 18, 2010)

Is that why it fell? I was watching it yesterday and it fell about 7% then went slightly up. I couldn't figure out why, they released their Q1 financial results which all looked good to me.


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