Diamonds and Dogs
10/15/12
Amedisys Inc. (AMED)Amedisys is looking very sick today, down 9.38% at $12.08. The at home healthcare and hospice company saw its shares falls after announcing a contract with Humana Inc. will provide half the revenue that was previously expected. The agreement to provide home health-care services to Humana will generate about $32.5 to $35 million in revenue. Investors were aware that the original contract was under negotiation, however the new contract much lower than anyone had anticipated. Analyst Brian Tanquilut, from Jefferies & Co. said, "We anticipated Humana reimbursement to fall by about 33 percent and had thought that our projection was one of the more bearish ones." Today, Amedisys saw its shares drop the largest amount in 4 months.
Workday Inc. (WDAY)
Workday is working hard for investors on its second day of trading, up 6.67% at $51.94. The cloud-based company offers cloud solutions to companies that operate in both the US and internationally. Workday's IPO was the most anticipated IPO since Facebook, and it raised $637 million. While the company has yet to turn a profit, it does have a recurring revenue stream and is signing on some very large customers, including Kimberly-Clark, Flextronics, and Hewlett-Packard. Furthermore, Workday is well known for being able to deliver software via the cloud, something that Salesforce.com has been able to capitalize on. Workday has had a phenomenal two days of trading, gaining 7.75%.
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