JJC:   I'm just glad that last quarter is over and the new one has begun... We caught a rally today... A nice turnaround from the lows... And once again, we saw leadership from a group that people have hated all year... And that group is Healthcare...

So what are we doing?...

We're pressing our advantage here... Seeking the safety and comfort this week from the federal government and its latest cooperate giveaway: the Medicare boondoggle, the Medicare bill... The healthcare stocks are finally starting to work anyway. We got the wind at our backs... But the ones who benefit from the Medicare bill should do even better than the whole healthcare group... But you got to read the fine print to figure out what that might be... And we have read it for you... But that's why you tune in, isn't it?... That's why we watch Mad Money... Because we're here... We've done the work...

And we've got three more stocks to follow up on the Fresenius Medical (FMS) that we recommended yesterday... By the way, the German papers were incredible... Bleebleeblee... Mad Money.... Bleebleeooblah... Fresenius... That's my own translation...

Anyway, I think these stocks are poised to feed heavily at the federal trough, which could make us tons of money off of this Medicare bill... Proving once again, that we do have blessedly, a government for, by, and of the cooperation, just like Lincoln wanted... Maybe not... Anyway, God bless America for that...

So who's the next player to benefit from the Medicare largess?...

I think its a stock that has lost people a lot of money in the past... One that I have disliked, one that I have trashed, tarred, and feathered...

And the winner is... Allscripts Healthcare Solutions Inc. (MDRX)... The top company for electronic medical records and electronic prescriptions... Now, normally I'd stay away from a stock that dropped from $28 to $8 in a blink of an eye, even if it rebounded at $12.16 now, booyah... But because this Medicare bill seems like it could be so favorable for this company, I'm sticking my neck out, and perhaps other body parts, and recommending it. See, the Medicare bill contains both incentives for using e-prescribing systems that will run from 2009 to 2013...

And an e-prescribing mandate that will penalize doctors and hospitals that don't start using e-prescribing software by the end of 2010. This part of the bill has huge bi-partisan support, perhaps the only thing in the world other than ethanol that is bi-partisan support... It's in the both the House and Senate language. Now, I think it could be exactly what a company like MDRX needs to get itself into gear... Because doctors have been notoriously slow to adopt their new technology, which I think is part of the reason it dropped so precipitously. They want to keep using their awful handwriting... They want to keep using the same old, same old, that result in pharmacy having to call the doctors office 30% of the time because the print is illegible for these crucial drugs... Not to mention the numerous accidents that occur... Like that kind of senior, remember George Bailey?... You know, Farah Fielday in "It's a Wonderful Life"... Paper medical records are so wrong, they're almost as bad as lawyers, who still think a word processor is a stooge sitting in front of a typewriter, not a computer program... But now that the government is going to start providing pay incentives for using this software and penalties for not using it, physicians and hospitals actually have a pretty good reason to change their evil ways in order to protect the bottom line.

Why MDRX?... After digesting its recent merger with Misys Healthcare, a deal that's expected to close in the third quarter, MDRX should have a client basis of roughly 150,000 doctors and 700 hospitals... That's a quarter of the doctors in the US. MDRX has relationships and sells software to all of these doctors, but e-prescribing, the e-prescribing market is still small... Only 2% of the 1.47 billion new prescriptions and renewals eligible for election rally were transmitted electronically in 2007... Hey, that has enormous room for growth and big addressable market, Wall Street jibberish for people you sell to... Especially with the e-prescribing mandate coming down from Congress, which might as well just be a check made out to MDRX... As they're already selling software to a huge portion of the market, thus I believe, are poised to capture the new e-prescribing business that the Medicare boondoggles will bring. This is exceedingly bullish... Buy, buy, buy...

Also, MDRX has a product called ERX, now it's software that they give away for free so doctors don't have to invest in new hardware or even pay for the software... This is a great Gillette kind of razor blade business model if you know what I mean... MDRX gets paid whenever there's a transaction, but there aren't any upfront costs. The main thing that MDRX precipitously from $28 to $8 was its failure to deliver on its electronic health records platform. There were bugs and the company had execution issues, given it was trading at 60-times earnings, any little slip-up would send this stock to growth purgatory, and its share holders, frankly, to Hades, for losing 20 straight points. That's exactly what happened... But, according to MDRX, they expect to resolve this issue by the end of the year with a new less-buggy version of the platform...

And since this software has nothing to do with e-prescriptions, which should be the big driver going forward, I'm not going to worry about it too much, you shouldn't either. I think MDRX is a comeback stock. It gets 82% of its revenues and over 90% of its profits from its software services division, which provides e-prescribing solutions... And the number of prescriptions filed electronically are expected to grow by 400% this year. The stock is at 18-times earnings, 40% earnings growth, long-term growth rate of 23.5%...

I think this stock has been punished enough. When you're a high-flying momentum stock and you screw up, you pay the price. But that's in the past now, especially with the help of the new Medicare bill, essentially mandating the hospitals and doctors to use MDRX's product. I think the stock is going to get its 25 multiple mojo back in 2009... We're talking a 44% gain, I see, ahead of time.

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