CAPS Pick: Amedisys, Inc (AMED)

December 16, 2010 § Leave a comment

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 like Amedisys and Almost Family ($AFAM.) Healthcare right in the comfort of your own home. It’s a good business model and I think it works well for their clientele.

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 (hmmm…are you sensing a pattern with my picks!?) 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. They are also worthy to look into in greater detail to see if they are worth buying with non-monopoly money. My first concern: I want a moat and I don’t see one. Also: old people are stingy.

AMED makes the pick.

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