HMA Takes a Hammering

Still, Lehrich stopped short of urging investors to sell the stock outright.

"On lower margins, HMA's ability to generate EPS (earnings-per-share) gains through balance-sheet de-leveraging is greatly diminished, thus making the equity no longer compelling on a near-term basis," wrote Lehrich, whose firm seeks to do business with the companies it covers. HMA's debt ratio "is now roughly six times its run rate, thus placing even greater importance on near-term asset sales and de-levering activity -- but not suggestive of any liquidity problems" right now.

Yet, as Skolnick pointed out, HMA has already tried to sell underperforming assets in a deal that ultimately fell through and hurt the company's recent results. Meanwhile, experts calculate, HMA has a cash balance of just $110 million -- with earnings on the decline -- and a huge long-term debt balance totaling some $3.7 billion.

To be fair, Bear Stearns analyst Jason Gurda highlighted HMA's cash flow as the one real strength in the company's otherwise dismal results. Notably, he pointed out, HMA's cash flow nearly doubled -- hitting $148 million -- from the weak levels seen one quarter ago.

Gurda has an outperform rating and a $13 price target on HMA's stock. However, his outlook on the company is currently under review. His firm makes a market in the company's securities.