This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Health Stocks in Motion

Shares of Chemed (CHE - Get Report) were among the worst-performing health-related stocks Friday, falling 7% after the company said that its Vitas Healthcare business is being investigated by the Department of Health and Human Services.

The company said the civil investigation relates to Vitas' "alleged failure to appropriately bill Medicare and Medicaid for hospice services." As part of its investigation, the Office of Inspector General is reviewing 80 sets of records each from Vitas' three largest programs. Additionally, it is looking at another 80 records that it selected from other programs. The patient records span from 1997 to present. Chemed said the investigation looks similar to a previous industrywide OIG investigation. At the time, the OIG inspected records from 1995 to 1998. Ultimately, no adverse actions were taken against the company, Chemed said. Shares were trading down $5.30 to $71.11.

Cardima (CRDM) fell 10% after its auditor expressed doubt about its ability to continue as a going concern. The medical equipment maker said that similar language has been included in the company's annual reports during the past three years. Cardima said that recurring losses and a net capital deficiency led to the auditor's conclusion. At the end of March, the company had $1.7 million in cash and cash equivalents, which the company believes will not be sufficient to fund operations beyond the third quarter. As a result, the company is exploring potential funding opportunities that include a strategic transaction or stock sale. Shares were trading down 2 cents to 19 cents.

Shares of Misonix (MSON - Get Report) fell 11% after the company cut its earnings outlook and narrowed its sales range. The medical device maker now expects 2005 earnings to be similar to 2004 results. Sales, meanwhile, are now expected to grow by 12% to 15%. Previously, the company said that it would post earnings growth of 25% to 30% on sales growth of 10% to 15%. Order delays, increased spending on marketing plans and technical and production issues surrounding the company's neuroaspirator led to the revised outlook. Shares were trading down 62 cents to $5.21.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs