Quality Systems (QSII) produces, sells and services software systems to automate medical and dental practices, clinics and community health centers.  One of the sources of errors to patients is mistakes in hand writing records and instructions.  The cost of converting from hand written records to computer records is high, but rewarding.  There are a number of competitors in the field. Quality Systems has improved pre tax profit margins from low double digit to 30.8%.  Percent return on equity capital has improved at a similar pace. 

One of the pluses of premier software is the repeated growth of new systems, on going systems maintenance and upgrades.  The fiscal years ends in March.  Reported EPS for 12 months ended December 2006 are $1.18; up 55% over $0.76 for a similar period in 2005.  Analysts estimate of EPS for the year ending March 2007 is $1.28 and $1.51 for the following year.  With such rapid growth the P/E ratio has rocketed up.  This is no widows and orphans stock.  Conventional metric valuations are difficult to apply.  The recent price of 40.70 favorably compares to the recommended SSG of 37.27 at the end of 2006.  The risk is high, but I plan to let this one ride.

Mr. Ralph:

1. I have been unable to read "views" on any of the posts. I can only read and access replies. I don't know if this is the correct forum for this Q, but just as well.

Thanks, Sandeep

Joe:

When I pull up some topics from the community board, the page shows columns:

Topic    Name/Description     Replies      Views     Date posted

Under "replies" column there is a number which is the number of responses to that topic. Under views, there is a different number than under replies columns and there is no way to access this "views" column to find out what has been written for that topic. How do I access that column? Thanks again.

Sandeep

Lynn this stock has been a falling knife for a while I would definitely put this on a watch list. You can get it near the bottom, buying near the bottom should result in the same satisfaction for returns. remember in investing, as in life, patience is a virtue.

Take Stock shows it as a "Buy" right now - and it keeps popping up on several screens. 

Danny - why was the stock a "falling knife" and is it still? 

Laura; I did recently pick this stock for another at the $29-30 range. I don't know if it is done dropping but I see more value in QSII now than before. The market has settled a little. QSII had a bump up to $34 a few months ago but has given that back. Even for solid companies who may not be internally impacted by the finance problems throughout, their customers may be affected, and that may affect how much they can sell to others during this rough patch. If they look solid during hard times they should look even better once normalcy reappears.

Thanks for your post Danny.  I plan on looking at this stock further to see if I can justify a purchase at this time.  We are trying to research our stocks a little better than just "winging" it and buying it because everybody else is, or just because the SSG shows it a buy, it may not really be. 

Hey - on another note - do you know why the clock is wrong on this site?  I know you didn't post your message when it says you did, because it's not the afternoon yet.  (although I wish it was) LOL. 

my posting says 11:45 am its 10:45 here cst I guess it is set for  EST.