Arcadia Resources Inc fka KADR

[gotinearly]

Dutton Associates Announces Investment Opinion: Arcadia Speculative Buy Rating In Updated Coverage By Dutton Associates
Tuesday May 27, 10:30 am ET


ROSEVILLE, Calif.--(BUSINESS WIRE)--Dutton Associates updates its coverage of Arcadia Resources (AMEX:KAD - News) with a Speculative Buy rating and a 12 month target price of $0.87. The 14-page report by Dutton senior analyst Denise T. Resnik, M.S. is available at www.jmdutton.com as well as from First Call, Bloomberg Professional, Zacks, Reuters, Knobias, and other leading financial portals.
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Arcadia underwent a major change in the senior management team in early 2007 when it developed a vision of retaining and expanding operations it believes will flourish in the years ahead and divesting those it does not. In the past year, the Company has divested home health equipment operations in Florida and Colorado, sold its retail operations located in Sears stores, ceased its retail operations at Wal-Mart stores, terminated its agreement with Metro Health Basic Care to operate non-emergency heath care clinics in Michigan and Indiana, and ceased its Hollywood, Florida pharmacy operation. These businesses generated an operating loss of $7.7 million in the nine-month period ended December 31, 2007. Arcadia has acquired PrairieStone (DailyMed™ compliance packaging medication system and other pharmacy services to retailers), JASCORP (retail pharmacy management services) and, more recently, Carolina Care (in-home health care). Arcadia is now achieving a positive cash flow from operations and we believe that a return to profitability will be achieved in the March 2009 fiscal year. In our judgment, the shares, trading near their lows, do not reflect the changes that have occurred at Arcadia or the potential for this restructured company. Our current 12-month price target for the shares is $0.87; however, we believe that as management executes on its business plan and as new endeavors begin to make a significant contribution to earnings, significantly higher share valuations could be envisioned.