7 Firecracker Stocks for the 4th of July

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Stock Pick #3 - Almost Family (AFAM)

Home health care service provider Almost Family (AFAM) provides a wide range of care services for the elderly, using a model of home care that treats patients with respect and empathy. With the baby boomers aging, the need for elderly health care and the market for AFAM's products is growing rapidly.

In the early part of this year AFAM declined on worries about the Obama administration using home health payments as a way to save money for future improvements in the health care system. Even though on an operating basis, the company is doing quite well, the market is concerned about the future.

These are legitimate concerns, but fail to appreciate the growth potential of the business. I expect the payment issue to ease over time, and I would use the discount today to build a position in the stock.

I rate AFAM an A.

Next: Stock Pick #4 - Apollo Group (APOL)