Question:
Any opinions on Novacare? Smaert Money recommended it as one of the
stocks for 90s. Since then its price has dropped quite a bit. Is it
worth buying?
Answer:
Lots of rehab is going 'in house' which is negatively affecting Novacare. Also
medicare reform could adversely affect them through reducing reimbursement on
speech and occupational therapy (currently outrageous returns). I do not own
it but it is probably a good buy at this price. IMHO, if you are interested
in this sector, accumulate patiently, and wait on the medicare reform. Also
may want to check out Theratx, symbol THTX. 30% growth rates.
