Long Position on MDAS @ $16.05 on 8/10/2012 (Momentum)

Flag Formation on MDASMedAssets (MDAS) provides technology enabled products and services for hospitals, health systems, and other non-acute healthcare providers in the United States.

It operates in two segments: Spend and Clinical Resource Management, and Revenue Cycle Management.

The Spend and Clinical Resource Management offers a suite of cost management services, supply chain analytics, and data capabilities; medical device and clinical resource consulting, which includes implantable physician preference items, utilization management, and service line consulting; supply chain outsourcing and procurement services; capital equipment lifecycle management; lean process and workforce optimization solutions; process improvement consulting; business intelligence tools; and performance analytics and data management tools, such as service line analytics, spend analytics and strategic information services, e-commerce, client master item file services, electronic contract portfolio catalog, and decision support services.

The Revenue Cycle Management segment provides a suite of products and services spanning the revenue cycle workflow from patient access and financial responsibility; case management, coding, and documentation; charge capture and revenue integrity; strategic pricing; claims processing; denials management and reimbursement integrity; revenue cycle and supply chain integration; revenue recovery and accounts receivable management; and outsourced services. It delivers technology-enabled solutions primarily through the company-hosted software, software-as-a-service, or Web-based applications.

Stockwinners is bullish on this name for the following reasons:

  1. The firm released much better than expected earnings.
  2. The firm increased its guidance going forward.
  3. Shares have formed a bullish "flag". 

We expect shares to break higher out of this formation. Stockwinners target price is $17.80 and stop-loss is at $15.37. The 52-Week Trading Range is between $8.52 - $16.28.

Position closed on 9/7/2012 at price of $17.70 with a 10.28% gain in 27 days.

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