Transcend Services, Inc. (NASDAQ:TRCR)

Take over target

Solid growth of earnings and cash flow, consistent earnings surprises, exciting business prospects, new product development, solid balance sheet with no debt and $30M cash. The stock is cheap at $25.

Zack's aggressive growth list.

Growth machine in a time when many won't be

Nice patterns of growth.

Medical transcription companies are paid by the line, right? New healthcare plan=more healthcare data=more lines of transcription. That's the world's easiest form of growth.

Transcend is number two in the industry by market size, but they have better margins than MedQ and have been picking up market share. My money would be on Transcend for the Spheris acquisition, and for continued market growth.

Speculating: Forbes #6 Best Small Company (November 2009)
Strong revenue growth - Reuters Buy

From a business perspective, they are in a sweet spot. Health care costs in the US will need to be addressed - both republicans and democrats can agree on that. They can also agree that bringing down the cost of health care is key to any solution. TRCR is in the business of eliminating overhead for physicians and hospital.
Nearly 9% of the available float for TRCR is short. Expect TRCR to squeeze the short sellers in the near-term giving the stock a nice run for in the short term. Last quarter they seem to have turned the corner hitting their revenue and earnings estimates. Look for them to outpace their 17% growth outlook going forward.

TRCR (Transcend Services Inc.)
Transcend provides medical transcription services to the medical industry. While it is trading at 25 times trailing earnings, and 17 times forward estimates, the growth rates it is having along with its great financial condition can justify this. Last quarter they increased revenues by 44% and earning by 22% (I'd prefer to see them gaining some economies of scale and be able to translate revenue growth into a higher percentage of growth in their earnings). None the less though, these are some great growth rates that if can continue at for any length of time, then this may be a nice bargain. Once again, this is another company that has basically no debt (less than half a million), but has almost $8 million in cash.

RK

Transcend Services is a model that works for outsourcing of medical services.

insider ownership, very low debt, good roe

Do not look backward at the price rise to say that this company is overvalued. They are fast growing into an area of high demand. The market is very large, and this companies slice of the pie could be a billion in 5 years.

The whole medical industry needs transcriptionist, and it's ripe for outsourcing. This won't change no matter what else happens in the industry.

1000% volume increase based off of earnings at 19 below 52 week high of 25.

Played out. This company needs to swallow up smaller competitors to keep growing.

Price is already next years price.

Underperform.

Another play on medical outsourcing. Transcription is a logic piece to slice off for outsourcing and cost savings. This could be a long term play.

Great Growth Stock going to at least $30

MEDICAL SERVICES ARE ON THE RISE WITH THE BABY BOOMERS.

1) This company came long way and has lots of experience.

2) Has good management

3) Using good way to outsource the work.

4) Has lots of business opportunity based on general health sector.

5) Bullish on outlook too.

6) Executive bought stocks from open market.