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Home health and hospice leader Gentiva Health Services (GTIV) is fairly cheap at today's prices of roughly $10.50 a share implying a forward multiple of ~9X based on consensus adjusted EPS of $1.20 for 2014. Even so, I still have a hard time getting excited about the stock at almost any price. Gentiva has been frustratingly inconsistent on both earnings and revenue, and while it is certainly true that the regulatory environment around hospice care is finally stabilizing, I think the company still has some headwinds to face.

In particular, there is a significant probability that there will be Medicare reimbursement challenges for the company in the next year for GTIV's home health unit. Lower Medicare reimbursement rates...

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