Almost Family Inc (AFAM)
Aug
11
Written by:
8/11/2008 10:25 PM
Almost Family Inc
(AFAM)
With a very nice 5 day run on high volume, Almost Family Inc
(AFAM) still looks like a buy. With revenue growth close to 50% and earnings
growth at 95% year over year for the current quarter, the stock trading at a 26
price/earnings is a good purchase.
Volume
AFAM has
averaged 190,000 shares traded a day over the last three months. But during the
current week of strong upward movement, the stock has seen volume numbers
ranging from 283,000 up to 653,000. In fact four of the last five days, the
volume traded has been over 500,000 shares a day. The strong demand for the
shares is an indication of institutional buying in many cases.
Earnings Forecast
The home
healthcare nursing provider soundly beat their last earnings estimate by 32% and
analysts have bumped up all their expectations for the company in current
quarter and the following quarter in December of 2008. The company has beaten
estimates three quarters in a row and recently purchased a provider of similar
services operating in New Jersey, Pennsylvania, and Connecticut.
The Trade
Almost
Family Inc is considered a small-cap as its current market cup is under $360
million so don’t be too aggressive. But adding a smaller position in the
quickly growing company should be profitable until there is a change in their
earnings outlook or results.