A Healthy Business Prescription from Gentiva Health Services Inc. (GTIV)
Source: http://Blog.QualityStocks.net/?p=12077Posted on Tuesday, September 2nd, 2008 | In Small & Micro Cap
Should you buy into a stock when it is within touching distance of a 52-year price high? Conventional wisdom would suggest otherwise, but there are strong contrary indications for this small-capital member of the Healthcare Facilities Industry from Melville, NY. The stock price has surged by nearly 28% in August 2008 following a great second quarter. However, the future looks better still.
The business model of direct home nursing is most durable. Who would rather spend old age in a medical facility, rather than at home? It is not just a matter of comfort, for the company offers substantial discounts compared to the costs of living in homes for the aged. America is certainly not getting any younger, so demand for this company’s service, care-at-home, is set to grow.
Some analysts maintain that it is easy for almost anyone to enter the direct home nursing business. It is true that some 13,000 providers crowd this industry. However, the company under discussion has a large market presence spread over 36 states. It has insatiable inorganic appetite, and remains on the prowl for further acquisitions.
Specialized services buttress the stock as well. The company goes beyond run-of-the-mill home care. It offers orthopedic rehabilitation, as well as services for people with nervous and heart disorders. The management has focused simultaneously on Medicare, thus building a wholesome blend of mass and niche customers.
September 2008 has started with a price of $27.83 for this stock against a 52-week high of $28.16. The Price to Earnings Ratio remains below 22. The Beta is 0.23 and the Earnings per Share (EPS) is currently 1.27.
Let us hear your thoughts below:
Last 5 posts by QualityStocks
- Lion Energy, Southern Star Energy (SSEY.OB), Gold Star Resources Fuse to Create Combined Company with Promising Growth Opportunities - November 6th, 2009
- VIASPACE, Inc. (VSPC.OB) Subsidiary Ionfinity Captivates Mass Spectrometry Market - November 6th, 2009
- Google’s Android Takes a Bite Out of Apple - November 6th, 2009
- Continucare Corp. (CNU) First Quarter Fiscal Year 2010 Results Show 116% Increase in Operating Profit - November 6th, 2009
- Muscle Flex, Inc. (MFLI.PK) Now Accepting Orders for the Beagle StepFit, the BUDDY Tablet Caddy and “Danny Alex Commercial Blue” T-Shirts - November 6th, 2009
America, Gentiva Health Services Inc., Healthcare Facilities Industry, Medicare, Melville, New York, Small & Micro Cap, USD
 About QualityStocks (http://QualityStocks.net)
Our name, QualityStocks, emphasizes our commitment to connect subscribers with companies that have huge potential to succeed in the short and long-term future. We believe strong management and vision for the future are crucial for any company to be successful. Timing is everything and we help investors succeed by providing an objective, broad-based view of the SmallCap markets on a daily basis. Please see disclaimer on QualityStocks website: http://disclaimer.qualitystocks.net |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.