STRM – Buy and Accumulate

By: ispeculatornew
Date posted: 04.01.2007 (12:00 am) | Write a Comment  (0 Comments)

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STRM – Streamline Health Solutions (Nasdaq) (Closing Price on Friday 3/30/07 – $4.27)

The stock price of Streamline Health has dropped considerably since I originally recommended it. Streamline’s decline has been perplexing because there hasn’t been any negative news announced.

On the contrary there have been a few press releases stating customers have been upgrading their document management systems. In their Q3 06 earnings release they gave guidance for annual revenue growth of 20% based on the expected signing of an agreement that got delayed in the third quarter and other large system sales. It seems based on the recent announcements that they are likely to meet their guidance.

If Streamline does meet its guidance it will post a record quarter which again makes the drop in share price very confusing. Consequently, I think now would be good time to accumulate some more shares and I am going to lower my cost basis with the average price of my other buy recommendations.

Disclosure: I currently own shares of STRM.

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