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Strategies & Market Trends : HOT STOCKS 100% 200% 300% profits possible short term

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To: P.E. Allen who wrote (493)	5/15/1998 12:00:00 PM
From: Mr. Stress	Read Replies (1) of 2038

Check this one out. Low float, HUGE short position. And then this news release: ADVH Riley Capital Research Issues Strong Buy Rating on ADVH with $37 Initial Target HOUSTON, May 14 /PRNewswire/ -- Riley Capital Research has initiated coverage of Advanced Health Corporation (Nasdaq: ADVH - news) with a ''Strong Buy'' rating and an initial price target of $37. ''Advanced Health is a unique and entrepreneurial healthcare company that has consistently demonstrated the ability to generate and manage strong growth,'' says Louis Riley, Chief Analyst with Riley Capital Research. ''We believe that most investors have either overlooked or mispriced this dynamic young company because of its membership in the mostly troubled healthcare sector. Companies that possess growth and balance sheet metrics similar to Advanced Health's in other industries often trade at forward price to earnings multiples well above their projected growth rates, as those projections are frequently met or exceeded. We feel that Advanced Health warrants a forward P/E multiple at least equal to its projected near-term forward growth rate of 35%, given its history of successful innovation and consistent execution. We think that ADVH could easily trade up to $37 based on current fundamentals and the potential supply/demand imbalance posed by the large short position in the stock. We think the stock could climb to $50 in the next 12 months if the company continues to execute as expected.'' ''On Tuesday Advanced Health announced the results of its sixth quarter as a public company. The company reported record revenues and strong earnings, growing revenues by 142% and fully taxed earnings by 250% over the year earlier period. It was the sixth consecutive quarter in which the company reported earnings that met or exceeded analyst's consensus expectations. In addition, the company announced its largest opportunistic acquisition to date, more than doubling the number of physicians under management to more than 700 and blowing away the Street's expectations for all of 1998.'' ''Advanced Health is well covered by Wall Street, with four of the five analysts that follow the company rating the stock a ''Buy'' or ''Strong Buy''. On Tuesday's conference call the company's CFO stated that he is comfortable with earnings estimates of $1.06 for this year - up 100% over 1997. The CFO also provided initial guidance for 1999, projecting earnings of $1.43 - a 35% gain over this year's estimates. Analyst's consensus median long-term growth rate for the company is 25% annually over the next five years. Yet even with these expected torrid rates of growth ADVH trades at little more than 12 times this year's estimates and nine times next years'. Advanced Health is indisputably one of the fastest growing companies in the healthcare sector, and has the best balance sheet metrics in the PPM industry.''

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