SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Biotech / Medical : Novacare (NOV) breaking out...
NOV 15.67+0.9%3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Sword who wrote (210)1/30/1998 10:15:00 AM
From: Todd D. Wiener  Read Replies (2) of 420
 
Jerry-

Last week, I tripled my position in NCES and boosted my NOV position by 50%. The current price is very attractive for both stocks, especially NCES.

If you are referring to NOV's use of lower paid therapists for contract therapy rehab services, the situation is a win-win for NOV. The company feels that it can offer the same quality of care by using PT assistants for some services. Here's an analogy in a primary care setting: Why should a company pay its nurses to take a patient's blood pressure, when a technician could do it just as well? The technician would receive a lower salary, because he/she has a less skilled job. NOV is simply modifying their approach by not having full therapists do work for which they are overqualified. If a service can be performed just as well by a lower-salaried employee, why not do it?

NOV management is vey sharp. They anticipated this Medicare issue a few years ago, and they have planned accordingly. I don't see any problems with the restructuring charge or anything announced in either earnings report. The charge is non-cash, and it was very smart to record the non-recurring charge in the same quarter as the non-recurring gain.

I'm all smiles with SMTC!

:-)

8"B

{ ; ^ j

Todd
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News