Monday, November 7, 2011

[Investor Place] Allscripts could complete a full break from a long-term consolidation

Allscripts Healthcare Solutions (NASAQ:MDRX) — This provider of clinical software and information and connectivity solutions used by physicians exceeded consensus earnings forecasts. Its net income for the quarter was $21 million (11 cents per share) compared with $1.4 million (1 cent per share) a year ago. This company could continue to benefit from an aging population, and its potential for acquisitions and product development and increased profitability are high.?

Technically Allscripts broke a double-top on its superb earnings, but still must break the barrier at just over $21 to complete a full break from a long-term consolidation. But this is a very volatile stock and a breakout could result in a jump to the high $20s.

It is prudent to buy a half position now and a full position either on a pullback under $19 or a break above $22.

 

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