Tuesday, August 7, 2007

National Home Health Care Corp.

National Home Health Care Corp. is a NASDAQ listed security that has been trading in a range between $9.65 and $14.05 over the past year. With 5,662,530 shares outstanding, a recent price of $12.51 gives a total market capitalization of $70,838,252. While there are certainly larger companies, National Home Health Care Corp. has definitely earned its place in the pack. Last year, National Home Health Care Corp. created $0.48 in earnings for every share outstanding.

National Home Health Care Corp. is currently priced by the market at 26.10 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, National Home Health Care Corp. could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.

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