Meanwhile, the market moved stocks higher that were perceived to have takeover potential, however Sacconaghi does not feel they are targets. That list follows: Cerner Corp (CERN), Computer Program Systems (CPSI) and Eclipsys Corp. (ECLP).

buy

Market Perform - Price 14.09 on Dec. 30
by Morgan Keegan
ECLP announced this morning that it has agreed to acquire privately held Premise, which is a provider of software and consulting services that help hospitals manage the flow of patients in and out of hospital beds. The company is paying $38.5 million in cash and expects the transaction to close within the next 15 days. We estimate that Premise will add roughly $10 million of revenue in 2009 and be neutral to slightly dilutive to ECLP's earnings. After almost a decade spent integrating and leveraging its string of acquisitions from the late 1990s, ECLP appears to be solidly back in a consolidation mode with the EPSi, MediNotes and Premise deals in 2008. We believe all three transactions were well thought-out and expect more deals in 2009. However, we remain on the sidelines...due to valuation.

4

GREAT RIDE

continued improvement in growth and FCF, maturing sales model, impact of national EMR over 3-7 years

BUY

BUY

BUY

Avg. Absolute 1 Day % Chg on Earnings: 11.15%