So we'll see how that goes.
Always a worry in this sector is how Medicare and Medicaid reimbursement rules will change but
recent rulings seem to be favorable
- ,,,,the new rules expanded the number of billable diagnoses from 80 to 153 and ended the practice of increasing reimbursements by a lump sum once 10 visits are made for a particular treatment. Now, therapies involving between 6 and 20 visits have suddenly become more profitable for these firms.
Almost Family is no secret among the blogging community - in the past few months alone I see on Seeking Alpha
- Jun 18: Almost Family - Aging Demographics Will Drive Long Term Growth
- Jul 13: Almost Family - A Growing Company That will Benefit from Aging Baby Boomers
- Aug 7: Almost Family Trading Under the Radar
- Aug 12: Almost Family's a Buy, with Strong Revenues and Earnings Growth
- Aug 13: Almost Family - A Leading All Star in a Market That Isn't Going Anywhere Fast
So instead of recreating the wheel, I will encourage anyone interested in this name to read through the multiple postings above for a better flavor of the company. Now, I always like to hear the contrary viewpoint so I was hoping for a story such as "Aug 20: Almost Family - the Overvalued Beast I'm Shorting to Zero!" since thinking through the cons is always as important as the pros.
The chart? Excellent of late; in fact I'd be hard pressed to find a better one out there.
As I've been stating one area I think should do "relatively" well in the recession is healthcare - the elasticity of demand is a bit different - much of healthcare is a "need" not a "want". Remember (as we approach the labor report) that Walmart, federal government, and healthcare our the United States 3 growth industries.
But unlike the market which bid AFAM up on it's earnings I'd like to hear more about this shelf offering. A $40M filing (10% dilution) would be far different than say a $120M filing (30% dilution) - so this is going to create an overhang in my eyes until more data is presented. The full $150M capacity in the shelf would be nearly 40% dilution! But aside from that, we appear to have another solid niche story and one we want to have on our radar.
