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Monday, 24 November 2003
November 24, 2003 Odyssey Healthcare, Inc. (ODSY)
Thanks for stopping by! As I mentioned in the just-posted previous note, I sold some MMSI and some CLSR today and picked up 150 shares of ODSY. Thus, this listing is of a stock that I am a shareholder, at least as of today. Let me go over the data, and I think you will see why I made the purchase. As always, please consult with your investment advisor before make any decisions based on information presented here as the investment ideas may or may not be appropriate or profitable!

According to money.cnn.com, ODSY "...is a provider of hospice services in the United States. Hospice services focus on palliative care for patients with life-limiting illnesses." ODSY had a nice day today, closing at $35.94 up $3.66 or 11.34% on the day.

On November 3, 2003, ODSY reported their third quarter 2003 results for the three months ended September 30, 2003. This was reported by BUSINESS WIRE and picked up by Yahoo.com. Net patient service revenue for the period grew 40% to $71.0 million compared to the same period last year. Net income for the quarter was $7.8 million, a 45% increase over the $5.4 million for the same quarter last year. On a per diluted share basis, the results for the quarter were $.21, a 40% increase over the $.15 reported in 2002.

If we look at Morningstar.com, we find that revenues from ODSY have grown rapidly from $27.2 million in 1998, to $46.5 million in 1999, $85.3 million in 2000, $130.2 million in 2001, and $194.5 million in 2002. At the current quarterly rate, over $250 million should be reported in 2003.

Free cash flow has improved from $3 million in 2000 to $15 million in trailing twelve months. The balance sheet looks superb with $33.6 million in cash, more than enough to cover the $22.7 million in current liabilities and $1.8 million (!) of long-term debt. In addition, ODSY reports on Morningstar to have $40.2 million in other current assets.

Looking at Morningstar.com for "key statistics" we find a Market Cap of $1.30 billion, a trailing p/e of 45.15 but a forward p/e (fye Dec 2004) of 29.61. There are 36.29 million shares outstancing and 33.3 million of them that float. As of 10/8/03, there were 3.70 million shares out short, down from 4.02 million last month. This is significant as it represents 6.02 trading days...and we may be witnessing a "short squeeze". The stock was recently split: a 3:2 split was the last split date on 8/13/03.

Overall, I like this stock a lot. In fact, enough to BUY some shares. The price is a bit steep but the growth picture is very nice and we may be lucky enough to have a bit of an extended bull run!

Thanks again for stopping by. Be sure to discuss with your investment advisor any questions or comments on this site. If you need to contact me, please feel free to email me at bobsadviceforstocks@lycos.com .

Bob


Posted by bobsadviceforstocks at 7:55 PM CST | Post Comment | Permalink

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