SUMT, a company in the medical outcomes arena, opened today at 4 1/2 after closing yesterday at 5 1/2. Yesterday it reported a huge charge as its reorients its strategy; it , as best as I can tell, threw everything in it could to clear the books. It now has a book value of about $5.70 and cash on hand of about $4.00. I think it is a buy for both traders and fundamentalists, the latter with a 1-3 year horizon. Today, I think, we reached the "give-up" stage, after the stock was slammed about 6 months ago. Investors have seen bear markets in a number of "medical-related" stocks in 1996-97: HMO's, medical software, PPO's, etc. I havew no idea when the bear market in this group will end.
FYI: I was a buyer today at $4.50- $5.125. I would enjoy a fresh discussion of SUMT's prospects (and those of its competitors, such as AMSI)and the wisdom/foolishness of buying SUMT.
Steve |
