Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of health provider Gentiva Health Services
So what: Now that a deficit reduction/debt ceiling deal is signed, sealed, and delivered, it's time for investors to fret about what that means to them. What may be good for the country overall will nonetheless squeeze companies like Gentiva, which provide services paid for by Medicare.
Now what: This is just step one of the pressure health care costs will come under; a Congressional committee will chop at the budget again before Thanksgiving. You can bet the health-care lobbyists will be out in force, but who knows what services will be on the chopping block? There's a lot of uncertainty for Gentiva right now, and even with a forward P/E ratio of less than 5, I'm still not convinced that now is the right time to buy shares.
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