MDRX - (recommended to subscribers on 3/09/03 at $2.09)

    Allscripts Healthcare Solutions, a provider of software and information solutions, as well as prepackaged medications for physicians, reported 4th quarter revenue of $19.9 million which was up 7% over the 4th quarter 2001.  Net loss was $2 million or 5 cents a share, an improvement when compared with a net loss of $8.5 million in the 4th quarter 2001.  Revenue for the software and information services part of the business was $8.4 million, up 42% from the 4th quarter 2001.  MDRX has $65.3 million or $1.70 a share in cash and securities and is debt free.  Book value is $2.11 per share and the stock trades at 1x sales.

       Looking at the chart above you can see the stock has support at this level.  In October 2001 the low was $1.87 with a closing low of $2.20.  In August 2002 the stock had an all time low of $1.60, with a closing low of $1.90. Improving fundamentals, net tangible asset value, along with the chart suggest a bottom for MDRX.

Update 5/16/03 - Recommend selling at the current price of $3.71. This gives you a gain of 78%.

For those wanting to hold for more we recommended selling on a break of $3.50.
 

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