Air Methods Corp (AIRM)

Air Methods provides air medical transportation services to hospitals; Its services include aircraft operation and maintenance, medical care, dispatch and communications, and medical billing and collection.

Posted positive Earnings surprise recently. Good earning history.

Price of fuel is rising and their service won't be in demand as much since transportation cost will be high..

I believe this stock is 33% undervalued.

Niche service in a recession-proof industry. I don't like to profit from tragedy, but their current price is too enticing not to buy in at. Long-term hold.

CAPS Rating: 3 Stars [157 outperforms / 10 underperforms]

This stock was chosen as a part of group of stocks based upon momentum and value.

I've been watching this bird ever since it fell from the sky, from $29 to $24. In the business of saving lives via helicopter, it seems there will always be business. A possible good recession stock. But hey, don't ask me, I'm quite up in the air on this one, but my instinct tells me that this stock has another flight up to $30 in the future. I just can't tell you when this helicopter is going to leave its current $26 pad, for which it has been hovering around for a while. (Disc: I don't own AIRM because I don't have enough fun money for this helicopter's ticket.)

Mostly chart trend hunch. Some debt. Some bad press lately. Market uncertainty will probably bring this down for awhile. Even the squeaky clean profitable companies are having trouble lately.

Slight "stumble" this last quarter puts this company on sale!

One of the biggest companies in the airborne healthcare industry with 23% market share, Air Methods is followed by just 2 analysts. With a forward p.e. of 17 and a long-term growth rate of 16%, their valuation right now seems pretty fair. Held for the long-term, this company should likely be an industrious contributor to your portfolio's appreciation in value.

This is an industry that ought to grow with each year. For many patients/ victims with critical needs, air is likely the only option in that golden hour.

From SmallCapInvestor.com : May 10, 2007

"Shares of air medical transportation services provider Air Methods Corp. (Nasdaq: AIRM) are flying high on news Englewood, Colo.-based company reported first-quarter profit that beat analysts’ expectations.

The net income for the first quarter ended March 31 was $3.7 million, or $0.30 per share, an increase of 42% compared with $2.6 million, or $0.21 per share, during the first quarter of 2006, Air Methods announced after Wednesday’s close."

Insider ownership stands at 16%.

dental. 550mil, ok industry.
steady money flow in.
BBB in this industry

As the economy struggles so will this company. In it's latest 10-Q management admits it can not predict what the flight volume will be. They are also concerned that with the tough times they may have chance in collecting on the fees charged in the CBS side of the business which makes up 58% of their YTD 3Q revenue. They also mention they don't know how the current health bill will inpact their business. Discounts for medicare customers are typical and they're concerned that even though they were able to get a 5% increase through recently and again earlier this year they're not sure if the insurance carriers will continue to allow.

On the positive side, they have just invested a large amount in new equipment which means their maintence costs should be under control for a while and it looks like the military contract is back on for the Products division in 2010. I believe they said it would generate another $7million plus.

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Uncontained Maintenance costs will drive profits down.

Huge potential for AIRM

Company has the business model of the future for emergency transport of patients. Model can be applied to all communities through the world. 10 X in three years

Low relative PE, good star ranking, PEG & 09 PE still below normal - bottom fishing - 8/3 picks

Air Methods is on track to grow earnings 40% this year.

Love doesn't meke the wolrd go round. Love is what makes the ride worthwhile.