AthenaHealth (ATHN): In the latest stimulus package approved by Congress, Barack Obama has segmented $50 billion dollars or so to “improve various aspects of Medicare”. The single best play off of this is AthenaHealth (ATHN) which acts as the backbone of the Medicaid system, offering backend services to doctors and hospitals. AthenaHealth has had 35 quarters of consecutive revenue growth, and has sported an annual growth rate of 35% since its 3rd quarter in 2008. Their client base includes roughly 12,000 physicians across 40 or so states. In the January 2009 edition of Institute of Medicine (IOM) Report, said “…Government institutions….should explicitly embrace measurable health care quality improvement as the driving rationale for healthcare IT adoption efforts, and should shun programs that focus on promoting the adoption of specific clinical applications.” This statement has AthenaHealth written all over it. In a weird bit of irony, AthenaHealth’s CEO Jonathan S. Bush, who is the nephew of former president George W. Bush openly voted for Barack Obama.

AeroVironment: AeroVironment makes unmanned aircraft used for surveillance in Iraq and Afghanistan. The company will likely see larger than expected orders as the Obama administration plans on removing troops from the front lines, as they activate these ultra-light weight, force multiplying aircrafts. AeroVironment is a high growth stock, as revenues firm-wide went from just $48 million dollars in 2004 to $216 million dollars in 2008 which represents a 46% compounded annual growth rate. During this period, gross profit went from just $15 million dollars in 2004 to $79 million dollars in 2008, as gross margins, a measure of a firms profitability on a per-unit basis averaged 38.2%. After hitting a 52-week high of $41.22 in mid-February, share of AeroVironment are down over 45% after reporting reduced 2009 revenue forecast from 20 percent to 25 percent growth to 11 percent to 16 percent growth. While investors had every right to slam the stock on the reduced guidance, the difference in expect revenue is only $20.1 million dollars, suggesting the 45% downward reaction is overdone.

MasTec (MTZ): MasTec is the single best play off the United States ailing electrical grid, and Obama’s mission to modernize the grid going forward. For the fourth-quarter 2008, MasTec said that its quarterly net income jumped to $18.2 million dollars, or $0.26 cents per share, compared with just $7.3 million dollars, or 11 cents per share. Revenues for the quarter soared to $413.9 million dollars up 51% from just $273.6 million a year ago, and 8.5% better than analyst estimates of $381.4 million. For the full year 2009, MasTec reaffirmed its 2009 earnings guidance in the range of $1.05 to $1.15 per share on revenue between $1.95 billion to $2 billion.

Woodward Governor (WGOV): On January 20th, Stockpickr.com published a bearish piece on Woodward Governor: http://www.stockpickr.com/problog/1327/, suggesting that the stock was severally overvalued at $23 and would likely move lower in the coming weeks and months ahead. On March 16th shares of Woodward Governor traded for $9.10 roughly 60 percent below its January 20th price of $23, and now offering long-term value for interested investors. Woodward Governor, designs, manufactures and services energy control systems and components for aircraft, industrial engines and wind-turbines. Woodward Governor is a solid diversified company that will take advantage of Obama’s wind-turbine initiatives On March 2nd, management proactively lowered its 2009 earnings per share estimates from $1.65 to $1.90 on revenue of $1.4 billion to $1.5 billion to $1.40 to $1.65 per share on revenue o $1.3 billion to $1.4 billion. Woodward Governor is trading near a historic trough of just 6.5x forward earnings versus its historical average of 15.7x forward earnings.

Astec Industries (ASTE): Astec the single based way to play Obama's stimulus package, particularly with regards to the $30 billion dollars or so that will be allocated towards road and highway pair. This under the radar name trades for just 5x cash flows, and sported 40% growth last year. For the fourth quarter, Astec's net income fell to $9 million or 38 cents a share, from $11.4 million, or 50 cents a share, a year earlier. Revenue fell 12 percent to $195 million

On Feb. 12, MMI Investors issued a press release calling for Chemed(CHE) to pursue a tax-free spinoff of Roto-Rooter, one of its two business segments. MMI estimates that a tax-free spinoff could potentially yield an increase of 40% to 75% per share to the valuation of Chemed as a publicly traded company. In the letter, MMI Investors states that subject to certain valuation assumptions, the potential outcome of a spinned-off of Roto-Rooter may yield a stock price of more than $55 to nearly $62 on an independent trading basis, and more than $68 to nearly $71 per share if both businesses were subsequently taken over. As of 2007, Vitas, Chemed’s end-of-life care business, generated 69% of the firm’s total revenue, while Roto-Rooter, Chemed’s plumbing business, generated 31%. Roto-Rooter, founded in 1935 by Samuel Blanc in Des Moines, Iowa, was purchased by Chemed in 1980. It is the largest provider of plumbing and drain-cleaning services in North America, providing services to approximately 90% of the U.S. population and 40% of the Canadian population. Revenue for full-year 2007 was $344.6 million, representing 7.9% year-over-year growth from 2006 full-year revenue, with margins of 20%, 2.6 points higher than 2006 margins of 17.4%. Vitas, the largest provider of hospice service for patients with severe, life-limiting illnesses, has approximately 8% of the U.S. health care market share. As of 2007, its total sales were $755 million, up 7.5% from 2006 sales of $702 million, with margins of 13.8%, 1.5 points higher than 2006 margins of 12.3%. According to data from MedPAC, Medicare hospice spending went from just $2.4 billion in 1999 to more than $10 billion in 2007. With the growing trend of aging baby boomers, Vitas' revenue will ultimately benefit. For the fourth quarter of 2008, Chemed reported net income of $19 million, or 84 cents per share, compared with $20.2 million, or 83 cents per share, in the year-ago quarter. Chemed also said the stimulus package passed by Congress provides for an increase in the Medicare hospice wage index from Oct. 1, 2008, through Sept. 30, 2009. Chemed estimates that this will add about $8 million in additional revenue to Vitas. Chemed also believes that Roto-Rooter will see revenue growth in the 4%-to-5% range due to increased prices and a shift to more expensive jobs. For full-year 2009, Chemed now expects earnings per share in the $3.70 to $3.95 range.