My investment idea today is a company that’s getting a boost from government healthcare policies. It’s SXC Health Solutions (SXCI), an Illinois company that provides pharmacy benefit management (PBM) and healthcare IT software.
Flash Player 9 or higher is required to view the chart Click here to download Flash Player nowSXC Health Solutions’ suite of prescription management programs includes software that smooths claims management, speeds payment and billing, gives desktop access to patient information, and a wagon-load of other services to low
er cost, speed processing and ensure accuracy and safety.
After years of steady but modest increases, the company’s earnings growth has taken off, hitting 138% in Q1.
SXCI bottomed at 10 last October, and its rally to near 27 in recent trading has been accompanied by a huge increase in volume. Revenues have exploded, thanks to acquisitions.
Is it the right time to buy it? Well, the stock has spent more than five weeks tightening up under resistance at 27, with trading volume higher on advancing days than on declining days. The stock will remain sensitive to headlines, but it looks good right here.
You should note that SXC Health Solutions will be reporting Q2 results on August 6, which will set the stock’s course for the next few months.
Dear Mr. Goodwin,
Your advice on China emerging markets has been VERY beneficial to my IRA account in the past 60 days. Thank you!
Is there any reliable way to confront the statements made in the Zero Hedge: Guest Post: “China-Economic Catastrophe Unfolding” from June 21,2009 re: Chinese banks choosing to ignore needed writedowns on bad debt
and (real estate) defaults.
How can we know if Terence Doherty is partially correct or if and why his supporting information sources are reliable?
Sitting in cash until I can justify discounting Terry’s report.
Richard Hoppe
On 7/10/09 Timothy Lutts said the new bull had come. I am greatful that one of the e-mail gurus I get had the balls! All other nay-sayers are still crying the blues. Even more recently you called a bull correction which you said confirms the new bull if now the nay-sayers would just shut-up. And let this thing sprout wings! Thanks! another Timothy can;t be wrong!!!!!!!!!!
Mr. Hoppe:
Thanks for your message. I have two comments about the “China-Economic Catastrophe Unfolding.” The first is that I have no way of knowing anything at all about Zero Hedge’s guest post. What are this person’s credentials; what’s his track record; what’s his evidence? etc. If I can’t evaluate the source, I have no reason to put any more faith in this dire forecast than I do to choose one of the rosy outlooks. There are always a ton of strong opinions, both good and bad, about any hot market. To my way of thinking, they cancel one another out.
My second comment is that I really don’t care what the Chinese market is going to do in six months. I care what it’s doing right now. I have a reliable indicator that tells me what the current health of the market actually is, and I invest accordingly. I also have loss limits that will get me out of any deteriorating stock before it kills my portfolio. If I have six months of profitable trading before the market “catastrophe” occurs, I will take it. Individual investors have one big advantage over institutional investors: we can liquidate a position almost instantaneously.
Accordingly, I will leave the prognostication and prediction to the big institutions, who need to tell the future so they can adjust their positions before disaster strikes. I’ll stick to my market-following indicators and make hay while the sun shines.
Hope this helps.
Paul Goodwin