Amidst all the economic mania today, there still exists interesting opportunities for investors to investigate. Such is the case with Continucare Corp (AMEX:CNU), a small healthcare organization that does a few things very well. The company's two main services include primary care medical services through its network of medical centers, and management services for independent private practice primary care physicians. The company's operations are in Florida, which despite its real estate troubles, continues to have a large migration of senior citizens seeking its harmonious and peaceful climate.

Investopedia Broker Guides: Enhance your trading with the tools from today's top online brokers.

Small But Large
Despite being a $318 million business, Continucare is one of the largest medical providers in Florida with 18 staff model medical centers and 21 independent private practice offices. In addition, the company launched Seredor Corporation; in August of 2009, with the acquisition of two sleep disorder facilities. These acquisitions represent a key growth opportunity for Continucare driven by a medical condition known as Obstructive Sleep Apnea, or OSA. Over 18 million Americans are afflicted with this breathing disorder while sleeping and it poses a severe risk if left untreated.

SEE: 8 Ways To Survive A Market Downturn

Strong Business Model
The company works with the nation's leading HMOs including Humana (NYSE:HUM), Aetna (NYSE:AET) and UnitedHealthcare (NYSE:UNH). Continucare's revenue is dominated by "risk" patients. Over 97% of the company's revenues are derived from Medicare and Medicaid patients. Even better, 90% comes from Medicare, which appears to have gotten a favorable long-term outcome in the healthcare reform bill.

SEE: 10 tips For The Successful Long-Term Investor

Revenues have expanded from over $112 million in 2005 to $310 million at year end 2009. The company's balance sheet is pristine with over $30 million in cash and no significant debt. Humana, one of the leading providers of government sponsored medical plans has recognized Continucare for four consecutive years with its prestigious Five Star Award.

SEE: Countries With The Highest Healthcare Spending

A Healthy Future
Continucare seems on a path of continued execution of its growth plans. In addition, one board member owns over 40% of the company, a major plus in the interests of shareholders.

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

Related Articles
  1. Stock Analysis

    5 Cheap Dividend Stocks for a Bear Market

    Here are five stocks that pay safe dividends and should be at least somewhat resilient to a bear market.
  2. Investing

    How to Win More by Losing Less in Today’s Markets

    The further you fall, the harder it is to climb back up. It’s a universal truth that is painfully apparent in the investing world.
  3. Investing

    5 Recession Resistant Industries

    No companies are completely recession proof, but some industries perform better in a weak economy than others.
  4. Fundamental Analysis

    Use Options Data To Predict Stock Market Direction

    Options market trading data can provide important insights about the direction of stocks and the overall market. Here’s how to track it.
  5. Stock Analysis

    2 Oil Stocks to Buy Right Now (PSX,TSO)

    Can these two oil stocks buck the trend?
  6. Investing News

    What Alcoa’s (AA) Breakup Means for Investors

    Alcoa plans to split into two companies. Is this a bullish catalyst for investors?
  7. Investing

    A Look at 6 Leading Female Value Investors

    In an industry still largely predominated by men, we look at 6 leading female value investors working today.
  8. Term

    What Is Financial Performance?

    Financial performance measures a firm’s ability to generate profits through the use of its assets.
  9. Stock Analysis

    Top 3 Stocks for the Coming Holiday Season

    If you want to buck the bear market trend by going long on consumer stocks, these three might be your best bets.
  10. Investing News

    Could a Rate Hike Send Stocks Higher?

    A rate hike would certainly alter the investment scene, but would it be for the better or worse?
  1. How do I use discounted cash flow (DCF) to value stock?

    Discounted cash flow (DCF) analysis can be a very helpful tool for analysts and investors in equity valuation. It provides ... Read Full Answer >>
  2. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  3. What is the formula for calculating compound annual growth rate (CAGR) in Excel?

    The compound annual growth rate, or CAGR for short, measures the return on an investment over a certain period of time. Below ... Read Full Answer >>
  4. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  5. When does the fixed charge coverage ratio suggest that a company should stop borrowing ...

    Since the fixed charge coverage ratio indicates the number of times a company is capable of making its fixed charge payments ... Read Full Answer >>
  6. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!