Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Amedisys Still Facing Significant Headwinds

It has been about a year and a half since I last wrote on Amedisys (NASDAQ:AMED). In that time, a lot of the bad news I feared (namely ongoing Medicare pressure) materialized, and the company has struggled to offset weak reimbursement and volume with cost cuts. While my bullish call on the stock has technically worked out (the shares are up about 55% since February 7, 2012), the stock really didn't go anywhere before August of this year and I'm not really calling this a successful pick.

Looking ahead, I see Amedisys broadly the same as I did before, only with a higher valuation. I believe the Street still underestimates the long term potential of this business, but...

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