Mike, good reasons not to buy this one. I am confused about your comment "I am desperate for some good stocks right now". Shouldn't you be running some other thread that is more rapid-fire in seeing results? Value investing for me involves patience, and people who are desperate, lose, IMHO and in my own experience. With all the suggestions you see here, if you are desperate, I kinda see you hanging by your wrists, twisting in the wind, as each poster in turn whispers the one, two, three magic stocks for you to buy. (Mabe stocks that have languished, and now are about to POP!) Well...
that being said, here's some stuff about OLS:
US largest contractor for home healthcare services
Insiders own a bunch - 25%
Employs 650,000 people
expanding overseas
Avg.low pe last 5 years: 13
Sometime in next 3 years will again earn at least what it earned in '95 = $1.39
stock will be at least 18
stock has sold about this price (18) or better every year since '92
should be able to easily (???) make 50% gain in 2 years: 14 to 21
(and maybe it'll all come at once late in 2nd year!)
div. increases every year or two since 1980.
at 14 with .28 div., that's a market multiple yield
lotta smart people liked it at much higher prices (Better Investing, S&P,others in high 20's.)
Sales increasing every year since '86. 2.5 Billion
Can these guys make any money? I say yes.
est. low now would be 6x cash flow of $2 = 12 (ouch! And with market crash, who knows how low)
I've mixed facts and opinions. And there's certainly a lot of negatives (like increasing debt levels) But see, I'm not desperate, so I can collect some spending money, while I wait for the gain. (Anyway that's what I hope to tell myself as the stock does nothing or drops :-). Paul
|
