Dan Jacome

Amedisys: Buying out the Competition

I am seeing a short interest of 41% on several sites - can this be right? this is a strange company, and roll ups make me wary, in general. Dems are more likely to cut Medicaid rates before Medicare ones, so this is, as you say, a positive for AMED. Another catalyst - if MedPAC gets that 5.5% cut in home health medicare rates, AMED will benefit, ironically, since most of its competition (I think 80% of home health companies are mom/pops) will get crushed. AMED probably has the ability to roll up a lot more companies....the huge short presence must be people who either think MedPAC will get a stronger cut in 2010 and harm AMED - or there is something seriously wrong with this company, as Citron Research noted last summer....