A company run by Chinese investor Tianqiao Chen last week sold another big chunk of its shares of Community Health Systems, continuing the trimming it started last fall.
Shanda Asset Management Holdings on Thursday and Friday unloaded more than 1.7 million for a total of $15.1 million. The transactions cut Shanda’s stake in Franklin-based CHS to 7.1 percent, down from 24 percent last fall before the firm started selling.
Chen’s Shanda group built most of its stake in CHS in 2016, when the local company’s shares were changing hands well above $10. CHS (Ticker: CYH) closed Monday at $9.23, up more than 6 percent on the day.
Shares of HCA Healthcare gained 3 percent Monday, helped by one investment firm’s very bullish take on the hospital giant’s prospects and adding to a pretty steady run that has seen them rise more than 60 percent since late September.
In their new quarterly letter to investors, the team at Bireme Capital, a Philadelphia-based firm that manages about $40 million for its clients, laid out their views of the market and the opportunities they see in an increasingly bifurcated environment.
“Both the overvaluation of many growth stocks and the undervaluation of many value stocks have been driven by COVID-19 extrapolation, by investors uncritically assuming that the pandemic-borne benefits or burdens to businesses would continue indefinitely,” the Bireme crew wrote. “We have been willing to take the other side of that bet.”
With HCA, that has paid off handsomely — the stock has more than tripled to $189 (Ticker: HCA) from its 52-week low from a year ago — and could produce more gains. Writing when HCA was trading around $175, the Bireme team said, “This stock is still cheap today and should trade at well over $200 per share.”