good post. i seriously doubt the operations would have any fraud. it's just not possible IMO. you are talking of thousands of facilities...even if there is fraud on 10 facilities it doesnt reflect much on healthsouth.
anyway, i will continue hold this thru the crushing of atleast some of the rocks. i think
1) bankruptcy risks have 99% gone away with marsal's friday statement and
2) we know the earnings estimate.
3) we know the fraud and the extent of the fraud largely. medicare fraud is almost 0%.
the SEC complaint and the various pieces of the DOJ investigation that is public ...we can make a reasonable conclusion the company wont be charged and it would be a monetary settlement. scrushy and his cronies will be charged.
4. we have seen the committment by the new management to get back the company in financial credibility and get the value back in its stakeholders. one should totally be convinced at this point that the restructing is working great and will work to its fruition.
considering the 4 factors this is a screaming buy at this price.