Acadia, Providence & BioCorRx: Three Addiction Rehab Stocks Worth Watching
By Vittorio Hernandez | June 17, 2014 1:21 PM EST
From a business and investment standpoint, addiction rehab stocks are tricky because you don't want to offend anyone when covering the market potential of the targeted segment.
Reuters file photo
Six percent of Russian population are drug addicts -
Let's face it: It's hard to translate data on alcoholism or opioid rates to monetary figures because it communicates that there's money to be made in the industry (i.e. from addicts). The opioid addiction market alone, for instance, is worth $23 billion, according to a Globe Newswire report.
Found below are addiction rehabilitation companies of different market capitalizations that are taking advantage of the size and revenue potential of the market in full force:
Market Cap: $2.31B
Acadia Healthcare is focused on providing behavioural healthcare services to children, teens and adults for mental and substance use disorders. According to the company's Web site, Acadia runs over 42 behavioural health facilities in 24 states and Puerto Rico. The company offers its addiction treatment services in inpatient and outpatient settings.
Acadia is a large cap that has captured a lot of attention over the past few months for being a growth stock. According to a technical snapshot provided by Investor Edge on June 3, the company's stocks are trading above its 50- and 200-day moving averages of $43.17 and $44.34. Its price per share has also soared by 6.67 per cent last month, at a time the S&P Health Care Sector Index rose by only 3.57 per cent.
The company's stock value closed at 45.52 on Friday, up by 0.15 per cent, based on latest market data. Its trading volume that day was 736,748.
Providence Service Corporation (NASDAQ: PRSC)
Market Cap: $506.12M
Providence Service Corporation is one of the nationally recognized and far-reaching addiction rehabilitation providers in the United States. Although it is focused on providing behavioural treatment for adults and teens, the company has also been successful in providing substance abuse services for its clients under its Providence Human Services arm. The company deploys ProvCare counselors under the said services who cater to clients and help them recover in home and community settings. According to its Web site, Providence "utilize peer contracts, treatment group processes, and a commitment to sobriety among our treatment methods."
Providence is a mid-cap that is showing a lot of revenue potential for investors. It has recently entered overbought territory, according to Nasdaq, although that doesn't change the fact that it's still a "BUY" as Zacks Investment Research deems. The company's stocks closed at $36.64, up by 0.58 per cent, Google Finance data showed.
Market Cap: $13.58M
BioCorRx, Inc. is a Nevada-based company known widely for its Start Fresh Program, a drug dependency treatment and prevention program targeted at opioid addicts and alcoholics. The company has licensing and distribution agreements with existing and future clinics in states, including Georgia, California, Arizona, North Carolina, Virginia, West Virginia, Maryland, Nebraska and Connecticut as well as Washington DC. Through these agreements, their partners are expanding the accessibility of the Start Fresh Program, which includes use of their Naltrexone implant product coupled with an outpatient rehabilitation programme.
Since its inception, the company has helped a great number of addicts who have taken a turn for the worse and has been lauded for the high success rate of its Naltrexone implant and Start Fresh Program as a whole. Start Fresh involves psycho-social coaching to help addicts focus on a future without substance abuse, and the insertion of a Naltrexone implant done through an outpatient procedure to curb their alcohol or opioid cravings for the span of several months.
BioCorRx Inc. is a micro-cap that trades at a volume of 141,023. Its shares traded at a price of $0.03 and $0.31 during the past 52 weeks, and $0.09 and $0.10 during the past five days. Its stocks closed at $0.09 on Friday, based on Yahoo! Finance data.
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