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Len, re PIHC

I don't know what to tell you about the sector. Psychology certainly not as exciting as some of the sexy tech companies out there. But considering the Nasdaq's performance in 2005...maybe that's a good thing! LOL

The loss 3 quarters ago was due to $947,500 in 1-time expenses. Excluding that, the company has been profitable for 15 consecutive quarters. The $947,500 expense was due to acquisition costs and a lawsuit payment. The acquisition of Pivotal Research Centers is why the boost in revenues/earnings during fiscal Q4 and Q1.

I always like to go to bigcharts or the company's homepage and read all the PR's for the past year. If you read everything on PIHC, it sounds like the numbers will continue to improve. In addition to this week's contract news, they also added a new VP and expanded their credit line in recent months. Plus they opened their first 30 beds at the Detroit Medical Center in October:

http://biz.yahoo.com/prnews/041014/lath091_1.html

PIHC will report fiscal Q2 earnings next month. They earned .043/share in Q1 vs. breakeven the prior year. Q1 revenues were up 30%. An annualized P/E of 10 would put the stock at $1.72, so I think it's already undervalued. Not a screaming bargain, but those aren't exactly plentiful these days.

If PIHC can post Q2 earnings of .05/share vs. breakeven on a 25% revenue jump, I think the stock could pop to the high $1's. There should be some positive comments on the conference call. The company could continue to grow organically and via acquisition for many quarters to come.