Purchased Amedisys (AMED) today at $26.57. AMED was down 24.1 % today – the largest % decrease today for a NASDAQ-listed stock. So no one else really likes it at the moment. It was a “hold my nose and buy” moment for me. I’m buying on bad news.

AMED is under investigation about whether it, along with three other for-profit health care companies – LHC Group Inc. (LHCG), Almost Family Inc. (AFAM) and Gentiva Health Services Inc. (GTIV) – increased their number of patient visits out of medical necessity or in order to deliberately trigger higher Medicare reimbursements.
AMED is trading at it’s March 2009 low. The bad news is out. It is severely undervalued based on conservative (even reduced) estimates of future cash flows. We’re getting the proverbial dollar for 50 cents. It’s core services are very much in demand. It just has to survive this investigation. It’s also a Magic Formula stock (Joel Greenblatt).  I think now is the time for it to work some magic.