Gary Bourgeault
Long only, research analyst, portfolio strategy, media

Uncertainty Ahead For Alliance Healthcare Services

Alliance Healthcare Services (NYSE:AIQ) has been on a tear since it was trading at $6.00 per share in the middle of November, 2012, having soared to $24.80 at the close of trading on August 13, 2013.

That rapid rise in share price, ongoing revenue challenges, large debt load, negative net margin, and weakness in patient volume in hospitals, all point to a period of uncertainty as the implementation of Obamacare approaches. Add to that the probable introduction of the proposed 2014 Medicare Physician Fee Schedule reimbursement changes - which will negatively impact the company - and it points to investors needing to become increasingly cautious over the near-term performance of Alliance.

Longer term is also murky, although some...

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