Chemed Corp. (CHE)(0.3%) (CHE - $76.62 - NYSE) , based in Cincinnati, OH, is a holding company that owns the Vitas hospice company and the Roto Rooter plumbing business. Vitas is the nation's largest hospice company, with almost $1 billion in annual sales. The company is currently facing headwinds from government billing changes and a regulatory investigation, but its management is working hard to protect margins and it should begin to move beyond these issues in 2014. Roto Rooter is enjoying steady revenue growth and record profitability as the economy, particularly the housing market, improves. With strong free cash flow and modest capital expenditures, Chemed is returning the vast majority of its cash flow to shareholders via significant share repurchases.
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From Mario Gabelli (Trades, Portfolio)’s Gabelli Asset Fund fourth quarter 2013 commentary.
