< Return to Bulls page

Things to like about AFAM

• AFAM was recently added to the Russell 2000. It had a runup going into June 30, then pulled back. It now seems to be resuming its relative strength in a terrible overall market environment and should be a good stock to hold in a recessionary environment.
• The company reported great first quarter earnings:
• Service revenues up 23%, Visiting Nurse revenues up 30%.
• 17% organic revenue growth plus additional gains from rolling up acquisitions.
• Net income from continuing operations up 41%.
• Reasonable PE ratio (16 times) for a company growing so fast.
• Little analyst coverage (only two analysts).
• Return on equity= 28%
• Growing analyst estimates for 2009. In the last 90 days, the forecasted analyst 2009 earnings estimate was raised from 1.31 to 1.67.
• Low institutional ownership (only 17%). Lots of potential upside as more institutional investors purchase AFAM which is now on their radar screen as a member of the Russell 2000.
• Good Sponsorship: Owned by Fidelity Lo Price (Tillinghast) and Oberweis Micro Cap funds.
• Will benefit from aging of the baby boomers.

Wikinvest © 2006, 2007, 2008, 2009. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.