1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies

The Bright Side of Projected Swine Flu Fatalities...

August 25, 2009 | About:

If you believe the Presidential panel 's projection of 90,000 deaths next year from Swine Flu then you might want to look at the bright side of all those unexpected funerals.

Death Service related public companies include:

Hillenbrand Inc. [NYSE:HI] written up earlier here and on BeatingBuffett.com

Service Corp, Intl. [NYSE:SCI]

Stewart Enterprises [NDQ:STEI]

Carriage Services [NYSE:CSV] written up earlier here and on BeatingBuffett.com

Rating: 2.3/5 (9 votes)


Batbeer2 premium member - 8 years ago
Some of these companies operate like insurance companies. If the clients live longer, they earn more, or at least get to invest the premium (float) longer. The profit is in the investment of the premium clients paid upfront.

Poeple dying an untimely death is bad for these businesses. Especially during a bear market, a major epidemic is bad news. They could be forced to sell assets at the worst of times to raise the cash needed to provide the service.

Spend just five minutes on the CSV or SCI 10-k and 15 minutes thinking about them.

Hillenbrand is another matter.

In short, some of these companies will do well if many poeple die an untimely death and some of them will do badly. It is like grouping BA, AYR and LUV because they all do things with planes.
Dr. Paul Price
Dr. Paul Price - 8 years ago    Report SPAM

That only applies to pre-need payments. Only a small percentage of revenues come from that source.

I'm speaking about all the unexpected deaths that are predicted to occur due to Swine flu.

When an otherwise healthy person dies at a young age, the death services are accretive to overall revenues. Add in 90,000 extra deaths as the presidential panel does, and funeral homes, casket makers, and crematorial product manufacturers will do landslide business.

If Comrade Obama's people get everyone worked up over this and nothing much happens

they could be digging their own graves.
AlbertaSunwapta - 8 years ago    Report SPAM
When it first appeared in Mexico, I started checking out these companies, so I can't see how any potential increased business can't already be priced into their shares. Holders ar likely hoping for hype in order to get out of their positions now.
Dr. Paul Price
Dr. Paul Price - 8 years ago    Report SPAM
See Barron's [and my own] positive write-up on Hillenbrand elsewhere on GuruFocus and on www.BeatingBuffett.com .

Please leave your comment:

More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

Performances of the stocks mentioned by

User Generated Screeners

daftheadersg hk best
henrikLynch inspiret Oct 17
lajor10Low EV/EBITDA
canidPE >50th percentile of INDUSTR
brucexoct 17 user defined screen
AngryQuality Growth cheap
EnjoylifeDad 1
punjanoot2007a academy+joe
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat