MarketBeatingStocks just bought Skilled Healthcare Group (SKH, Healthcare Facilities) based on their earnings and sales growth, strong operating margins, and excellent industry prospects.  SKH earnings and sales growth over the past 12 months has been over 35% and 22% respectively.  In addition, SKH has strong operating margins which are better than 70% of their industry competitors.  We are also very optimistic on their longer term prospects.  A Medicare pricing update in October should be beneficial and the company does not expect any near term price cuts from Medicaid in the states they operate.   The company recently raised their full year EPS guidance based on their improved outlook.  Longer term SKH will benefit from the aging demographics shift and as a result, greater demand for their services.   Currently, institutional ownership represents only 52% of the outstanding stock, so there is always the upside potential if big traders show more interest and demand for the stock.   The stock price has been forming a support base in the $15.50 to $16.50 range over the past two weeks, which we view as a good time to buy.  We do appreciate the downside risk given the recent volatility in the overall market which could always drag SKH down, however we would hope that healthcare stocks hold up better than most in that scenario.