Sunday, July 27, 2008

In these troubled times it is difficult to search for the bright spots of the business scene. We previously pointed out pawn shops as an obvious choice. Here is another--Home Health Care. The aging population of the U.S. demands home health care services for the foreseeable future. The leader in this field is Amedisys, Inc. symbol AMED. AMED is very overextended. Do not buy this at its current $62 area. Wait for a pullback into the $53 to $57 area. Another company is AFAM, but I did not do enough research on this one yet. These companies are showing very good relative strength vs. the rest of the market, so the group is not a secret to professional money managers. But I do believe that this story has legs, and with the proper entry point, there is still good money to be made.