First a personal update:  Friday’s blog was kind of “doom and gloom” when I was stuck in the middle of a power outage (second year in a row for NH).  Even thought I got power back relatively quickly, I am still shopping online for an emergency generator.  Family is fine, house is safe and my section of NH is no longer a third-world country.  It is amazing how we take important things (like power) for granted.

Now…on to stocks.

My scans today produced NightHawk Radiology Holdings, Inc. (NHWK). Nighthawk is at the end of a prolonged decline in its stock price IMO.  This might be a good time to put it on the radar.  If it recovers from its February swoon and embarks on a climb like last year, you will like me very, very much.

Here is what I am talking about (1 yr. chart for NHWK)

NHWK is actually a very impressive company.  They have a dominant market position in their industry.  They provide services to radiology groups and hospitals throughout the United States.  NHWK provides a complete suite of solutions to doctors and hospitals, including professional services, business services, and its advanced, proprietary clinical workflow technology.  The company claims to provide round-the-clock services for for approximately 1,560 sites or 27% of all hospitals in the United States.   That is pretty impressive!

What is also impressive is that they make money.  Revenues of $162 million in ‘09, but a loss in 2009 due to a $68.7MM  goodwill impairment charge (so, I wouldn’t hold it against them).  L-T debt of $77MM, but great liquidity ratios.  Plenty of cash in the bank ($32.29MM) and over $1.37 in cash per share.

Here is the 3 month chart so traders can see in greater detail what is going on.

Here is my final analysis.  The table below is a chart of NHWK’s highs and lows during the last year.  Lots of volatility and nice bounces off lows to post highs again.  A trader could make a great profit of trading these swings.

Do you see why I say that this is a great radar stock?

I will be watching it myself.

Good luck and good trading,

Jeffrey Dean

Editor