OMCL is a Medical technology company that markets equipment and s/w that dispenses drugs and supplies in the hospital market. About $100M in revenue, 7% ROS, plenty of cash. Stock got hammered in Q1 for missing their forecast. Their issue is that theirs is a long cycle transaction. They book an order and then manage the backlog until installed (which can take 6-18 months) which is when they recognize revenue. They missed the revenue # because of mismanaging the backlog. Orders flow continues to be very strong. They need to spend the next 2-3 quarters building the size of their backlog to make revenue more predictable in 2006 and beyond. Their business model and technology are excellent. Hot space for hospitals. Excellent takeover candidate. I think the stock will EASILY DOUBLE TO $18 by the end of the year which is where it was prior to the miss in Q1.They have a very, very strong board.
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