Long Position on MD @ $85.75 on 1/18/2013 (Rumor)

Cup & Handle on MDMEDNAX (MD) provides neonatal, maternal-fetal, other pediatric subspecialties, and anesthesia physician services in the United States and Puerto Rico.

It offers neonatal care services, including clinical care to babies born prematurely or with complications within specific units at hospitals through neonatal physician subspecialists, neonatal nurse practitioners, and other pediatric clinicians. The company also provides maternal-fetal care services comprising outpatient and inpatient clinical care to expectant mothers and their unborn babies through affiliated maternal-fetal medicine subspecialists, obstetricians, and other clinicians, such as maternal-fetal nurse practitioners, certified nurse mid-wives, ultrasonographers, and genetic counselors.

In addition, it offers pediatric cardiology care services consisting inpatient and outpatient pediatric cardiology care of the fetus, infant, child, and adolescent patients with congenital heart defects and acquired heart disease, as well as adults with congenital heart defects through pediatric cardiologist sub specialists, pediatric nurse practitioners, echocardiographers, diagnostic technicians, and exercise physiologists.

The company’s other pediatric subspecialty care services include care of critically ill or injured children and adolescents; and clinical services in other areas of hospitals, primarily in labor and delivery area, and nursery and pediatric department.

Shares have formed a bullish "cup and handle" and are expected to head higher out of this formation.

We are now hearing rumors of good news for this company. One of the rumors states that this stock will be named by the leading stock advisory service as one of its "top picks." This service is widely followed by mutual funds and institutional money managers. These investors have portfolios that mimic recommendations of this service. Their naming of the stock should lead to additional demand for the shares.

52-Week Trading Range:  $59.24 - $86.34

Entry Point:  $85.75

Stop Loss:  $81.22

Target Price:   $94.05

Updates

2/19/2013 2:22:35 PM

We closed MD at $88.20 with a 3% gain as our 30-day expired. The money is being invested in MDC as it has a better prospect at this stage.

Position closed on 2/19/2013 at price of $88.20 with a 2.86% gain in 32 days.

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