Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[Profit_Ace]

QSII apparently practices "aggressive accounting". Upper mgmt own less than 100k shares. Perhaps a speculative put position might not be a bad idea, ie, if you can get the 50puts dirt cheap. From the yahoo board:

http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=4687052&tid=qsii&sid=468...

I quote from the April PJC research report:

"QSII recognizes license fees upon delivery of the software. The result OF SUCH AGGRESSIVE ACCOUNTING IS A COMPANY THAT IS DEPENDENT EACH QUARTER ON SALES AND BOOKINGS."

They go on to say, "QSIIs upper management owns less than 100K shares in the company."

PJC has a 2006 target of $49 and says the stock trades at a 50% premium to their peer group.

Zachs says, "The company recognizes revenues immediately upon a contract signing. This limits visibility on the company's outlook... The market for healthcare IT services is intensely competitive. Several of QSIIs competitors have significantly greater name recognition, as well as greater financial, technical, product development, and marketing resources. This competition can limit revenue growth. In particular, this competition may result in price or market share erosion."

Their year end target is $52.

rgds