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Addus HomeCare Corporation Message Board

  • hyulpy hyulpy Apr 11, 2010 2:06 PM Flag

    Lots of lawsuits

    Lots of class action lawsuits filed right after earnings. Looks like management really screwed the pooch with the IPO disclosures.

    Now, from the class action lawsuit filings, it seems that at issue is $1.5 million in undisclosed reserves for bad debts on A/R. With 7.7 million shares outstanding, it seems to me that the reserves in question amount to 19 cents per share. And ADUS attributes this to billing delays due to internal billing issues.

    It seems to me that the drop of $3/share is unwarranted. Especially if ADUS gets their billing department back in shape, and gets collections back to historical levels shown in early 2009.


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    • They can easily fix the AR problem by hiring some competent people.
      The analysts continue to maintain their "outperform" $11 targets. Surely they know better than any outsider what is going on. As far as I know they managed the IPO.

      • 1 Reply to itisrare93
      • lawsuits always show up right before the insider lockup expires

        It's a way to get the insiders to sell on the cheap

        Once / if the insiders do what they want then we'll all get a chance to buy on the cheap

        The clock is ticking, the insider lockup expires in a few weeks and most of them probably have planned sales that will let shares go at these prices. Ummm, hmmm it never looks good when insiders give away stock; even if it is because of a planned sale. It shows lack of confidence in their future.

        Personally I'd like to see a lot of them hold and wait for $10+
        Of course, the shorts would love it if they let go right now

        Time will tell what happens

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