Gentiva Health Services, Inc. (NASDAQ:GTIV)

CAPS Rating: 4 out of 5

The Company provides comprehensive home health and related services throughout the United States.

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Player Avatar jclawsonPHN (62.26) Submitted: 5/22/2007 2:31:41 PM : Outperform Start Price: $20.01 GTIV Score: -62.24

This one is easy. More old people, more health problems causing greater need for health care at home. More demand=more work=more money.

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Member Avatar Denysnmd (< 20) Submitted: 10/15/2007 2:09:42 PM
Recs: 1

The problem with using demographics to support a stock price is that demographics take a LONG time to change whereas the stock price looks for this quarters profits. It's estimated there are five more years until we start to see the real impact of the aging demographic and five to ten years before we know what's really happening. For example, 600,000 people are expected to retire from the Federal Government in the next five years but no one knows for certain that they will. They don't have to retire and if economic conditions are not such that they need to, most these jobs are too cushy to leave.

This stock will probably perform as you say in a five year period but in the mean time, your CAPS score is probably going to struggle with it.

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