BlueStone Capital Initiates Research Coverage of National Home Health Care with a Buy Recommendation.NEW YORK--(BUSINESS WIRE)--July 9, 1998--Senior Analyst, Kurt H. Kammerer of BlueStone bluestone, common name for the blue, crystalline heptahydrate of cupric sulfate called chalcanthite, a minor ore of copper. It also refers to a fine-grained, light to dark colored blue-gray sandstone. Capital Partners, L.P. initiates coverage of National Home Health Care (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : NHHC NHHC National Home Health Care Corp (Scarsdale, NY) ), with a BUY rating, and a 12-24 month price target of $7.50 per share. National Home Health Care, headquartered in Scarsdale, N.Y., currently serves over 1,500 patients, providing home health care services throughout the New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. metropolitan area and Long Island in the State of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and in both Fairfield and New Haven Counties in the State of Connecticut. Analysts Summary: -- We believe NHHC offers long-term, value-oriented small cap investors participation in the potential upside of the home health care industry's turnaround while enjoying the security of a well-positioned, financially sound company. National's $10.3 million in cash represents $1.98 in cash per share. NHHC is debt free. -- In our opinion, National's valuation should incorporate a public company liquidity premium (50%, conservatively), to private market acquisition multiples that can reach as high as 5x EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become . -- Initiating coverage with a Buy recommendation and a 12-24 month price target of $7.50 per share. BlueStone Capital Partners, L.P. is a full service investment banking and brokerage firm that delivers financial services to emerging growth and medium sized companies worldwide. BlueStone Capital assists clients in maximizing their growth by providing sophisticated investment strategies that are designed to achieve clients' strategic, operating and financial goals.
CONTACT: BlueStone Capital Partners, New York
Kurt H. Kammerer, 212/834-0842
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