Psychiatric Solutions, Inc. (PSYS)

Psychiatric Solutions has trailed the market for the last 3 months, 6 months and 2 years. This is surprising considering that this company has been hurt less than most by the current economic malaise. Although healthcare reform could hurt this company I doubt that it will make a big difference. Psychiatric Solutions is the premiere inpatient behavioral health provider in the United States and mental health is likely to get more support, not less as the country readjusts its priorities. At one times book value, the price is "better than usual". This company traditionally sells for 2 -3 times book value. Earnings look good. Despite all of the above, I have concerns. This company is a rollup and "goodwill" accounts for its entire book value. The company borrows heavily to make acquisitions. For the above reasons, my perspective is short term to intermediate term. Current financial strength looks good and I expect the stock will become fashionable before any adverse events occur.

earnings going backwards. missed this quarter. est likely to be revised downwards.

Recently took hit with earnings miss, if the company fixes issue with earnings it is exteamely undervalued.

V, 10/28/09

Psychiatry Kills!!!

Probably bad timing but psychiatry is being exposed as the harmful thing it is and is on the way out.
The name of the company is an oxymoron.

going out on a limb

Class action law suit? how much will the company cough up to fend itself off from people who have lost money. with the heavy losses across the market in general over the past few years, I bet people will be jumping on board to get something for nothing. Buying up facilities all over doesn't help. Unless you are on Medicaid, a person's insurance is going to max out for these services. It is likely the company will have to always be rounding up new customers to stay profitable-- unless they are taking straight Medicare and Medicaid.

Also, if the lawsuit concerning "false and misleading statements concerning the Company's safeguards and controls over its operations" deals with direct-service operations to its patients, then the potential exists for having big Medicare and Medicaid compliance issues, and\or perhaps tertiary complaints from those all too happy sue anyone or everyone for a health care system that has not lived up to healing a loved one.

ag. growth post z1, pt40

psys

This co. is rapidly gobbling up mental health facilities.This sounds like a "no brainer". Ha Ha!

With the current situation. People are depressed. They need help which helps push the market up.

One of my real current holdings.

The recently expanded SCHIP will benefit PSYS. PSYS hospitals are spread across the country and not concentrated in one area. PSYS has been able to push through price hikes due to dominate market share in the areas they serve. Unlike not for profit hospitals, if you can't pay or do not have insurance you don't get admitted to their facilities so they have very few patients that don't pay their bill. Favorable industry trends and diverse payor mix. Dominate player being the largest operator of free standing psychiatric facilities with over 10,000 beds in 31 stares. Same facility revenue growth in high single digits along with increasing EBITDA margins makes this a buy.

My biggest concern is there debt level.

My watch list crossing buy threshold

Bank on more people with mental issues/disorders as the years go on. October of '08 made sure of that.

IBD

Congress is determined to require insurance companies cover psychiatric illnesses, as a tribute to Ted Kennedy (who championed this effort).

Tough times call for better living through pharmacology, so you gotta go see the doctor to get those drugs!

multiple bullish technical signals 91.3