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.


Player Avatar rainmaker59 (39.89) Submitted: 12/13/2010 4:13:03 PM : Outperform Start Price: $25.21 LHCG Score: -48.01

Here's what Usnzth writes on 12/7/2010:Let's start with a stock that has ROE over 21%, less than 2% debt to capital, and a P/E of 9.Then we have strong management with steady earnings growth in an industry set to explode with the aging baby boomers.Lastly, we have a price drop of over 11% (over $3.00 per share) over the past five days because of a forward earnings adjustment of 10 cents per share.I feel that this solid company has been oversold on a bit of bad news. Yes, the Meidcare reimbursements will drop five percent, but management is telling us this will make - at the most - a 4 percent difference in the bottom line next year.I see no need for such a severe haircut, and bet that this stock will bounce back above $26.00 before the end of January, 2011.

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