LHC Group, Inc. (NASDAQ:LHCG)

CAPS Rating: 5 out of 5

The Company provides post acute healthcare services primarily to Medicare beneficiaries in rural markets in the southern United States.

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Player Avatar Desdemuerto (99.51) Submitted: 1/27/2010 3:16:21 PM : Outperform Start Price: $32.26 LHCG Score: -68.71

Long-term pick. Significant short-term pullback is likely if the market continues to drop as the stock is very high off it's lows.

Terrific company in a niche market with no direct competition (rural nursing homes / quasi health care facilities). Amazing growth rate and very intelligent management. History of making great acquisitions. Very good margins. Trading at just 13x my estimate of FCF.

Only risk is that many of the clientele are on medicare and thus any significant government cut-backs of medicare will obviously be detrimental.

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