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The Deipnosophist

Where the science of investing becomes an art of living

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Location: Summerlin, Nevada, United States

A private investor for 20+ years, I manage private portfolios and write about investing. You can read my market musings on three different sites: 1) The Deipnosophist, dedicated to teaching the market's processes and mechanics; 2) Investment Poetry, a subscription site dedicated to real time investment recommendations; and 3) Seeking Alpha, a combination of the other two sites with a mix of reprints from this site and all-original content. See you here, there, or the other site!

07 April 2005

Miracles can and do occur

What could anyone possibly say about the rocket ship ride for Option Care/OPTN shares (other than miracles can and do occur)?

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Yes, I realize I should have said something about these shares 6 1/2 years ago, but I didn't even know you then, leave alone this company. And anyway, who is to say the shares will not continue higher, even from this seemingly elevated price? That certainly appears to me to be the case in this instance...


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Option Care provides infusion therapy and other ancillary home healthcare services through its owned locations and through its supporting franchise network. These activities are very similar to another company I owned in the early 90s (RoTech Medical/ROTC;since bought out), and that made me lots of money. As a result of that investment, I know and understand well the field of home infusion therapy. Needless to say, it is a money-maker -- within the confines of medicare reimbursement, etc.

I will not dwell on this specific opportunity because it is not for every investor. But it does serve as an example of a type of opportunity I buy for both trades and investments. OPTN trends higher, and declines such as last Friday's reversal -- caused solely by the reversal in the market-at-large -- represent buying opportunities. I bought shares on Monday, and more on Tuesday. At some point, the shares will reverse and begin anew (most likely) another intermediate term base. But having only recently emerged from its last intermediate term (6 months) base at ~$12.50, it is unlikely to do so from the current price.

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