+ Watch AMED
on My Watchlist
The Company is a multi-state provider of home health and hospice services.
MACD Crossover 02/08/13
Home health care companies got even cheaper this week
Seems a bargain with a p/b ratio of 0.37 for a healthcare company that is in 45 states in the US. EPS have dropped about 41% since last year, but the share price has dropped 64%.
Cheap, low P/E ratio.
I am wary that some of their management practices will be landing them in hot water...but maybe I still remember the days of HealthSouth a little too well...
I am a BetterInvesting member and selected this stock with my SSG (www.betterinvesting.org).
Price/earnings of 8.23, market cap of 958.98 million, Debt/equity of 0.21, Return on Invested Capital of 11.20, based in Louisiana, United States, focus on home healthcare.
It is cheap now and well positioned in a growth segment. To the extent management executes on their plan this should be a winner
Story: Amedisys specializes in home healthcare nursing services. I like this as a longtime play as more and more babyboomers become potential customers. It is the numbers that have me drooling over this company though. With a PEG ratio of only 0.9, price to book ratio of 1.3, price to sales ratio of a measly 0.7, price to cash flow of 5.4 and price to earnings ratio of 8, this stock meets about anyone's definition of a value stock. Those looking for growth won't be disappointed either. The historical revenue growth rate is a robust 40.9%, Earnings per share has grown a nice 41.7% with analysts predicting 13.5% growth in the future. Return on Equity is a solid 16.8%. A nice kicker is that AMED carries little debt with a debt to equity ratio of only 20%.The only drawback I see is that AMED doesn't pay a dividend. However, there is good options activity for those interested in lowering their effective purchase price by either selling covered calls or writing puts.I'm jumping in a putting a sizable real money stake in this small cap company. It is my top pick.
Demographics will only help Amedisys going forward. WIth the real benefits from an aging population to be realized 10+ years from now, the best play by any company with a demography play is to expand its presence as much as possible over the next decade, re-invest heavily, and build the infrastructure to become a leading-name player in 2020. AMED focuses on growth, and its wide network will allow it to reap the benefits of a world without enough investment in senior care.
1. SOLR 3* 2. FRX 3. CNXT 4. AMED 2* 5. PPD 6. AGX 4* 7. TNAV 8. UIS 9. IPXL 10. MRX 11. IDCC 12. VPHM 13. AFAM 14. CMTL 15. CBST 16. PRSC 17. APOL 18. SCEI 19. SNDK 20. PDLI 21. SUPG 22. CRME 23. HRB 24. DLX 25. PWER 26. USMO 27. UNTD 28. ELNK 29. LO 30. OSKTimestamp: 2010-12-21 03:28:52 UTC
There are lots of old people. Everywhere. And if there’s one thing I know about old people it’s that they hate going outside and they wont if they don’t have to. That’s why I love these home healthcare companies.Also, looks like these home healthcare companies got a little…um…creative with the way they were keeping their books and working with some fun loopholes in healthcare legislation. So much so that the regulation hammer began to fall and then their stock took a beating. Regulation wont kill the industry so I expect good times ahead for people taking care of old people. A good long term CAPS pick.Read more at www.batting450.wordpress.com
It will come back
Slow climb retracement towards resistance of $35.05 long term.
Down near 7% today...an overreaction to today’s "location closing" news, me thinks.
great value; senior population about to explode
Wow, that only took about a month to completely knock polly off her perch huh? Amedisys has never been a company particularly high up on my buy list largely because home health care companies are prone to litigation and their business is predominantly mid single digit growth, not enough to attract me. But what has happened with Amedisys over the last month is indeed enough to attract me to place a limit buy order at $22.12! Amedisys is a profit producing cow that will crank out anywhere from $3.75 to $5.00 based in yearly EPS based on economic trends and litigation costs. They are net debt positive about 120M, something I usually am against, but when a company is trading at a lowered forward price to earning of about 5.7, I'm not going to complain all that much. Trading below book value now and beginning to see some nibbling on the insider end I think we're going to find out just how overblown traders have been taking this down over 50% on a 20-30 cent EPS shave for the year and a relatively benign subpoena from the SEC. I really don't know what the hell investors are thinking here but at a 5% growth rate the PEG ratio is right in line if not below the industry average and they are healthfully profitable. And the problem is...? UltraLong
undervalued Magic Formula stock, pressured by lawsuit.
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