ORLANDO, Fla., March 23, 2007 (PRIME NEWSWIRE) -- RedChip Independent, a division of RedChip Companies, Inc., announced that it has issued a research update on Merge Healthcare (Nasdaq:MRGE).
Lisa Springer, CFA/MBA, RedChip Senior Research Analyst, wrote in the report:
"We initiated coverage of MRGE with a 'Buy' recommendation in February 2006, citing new products and enhanced access to OEM sales channels resulting from the Cedara acquisition as reasons to invest. We downgraded these shares to 'Hold' in late February when the Company's accounting issues became apparent. Since then, Merge's share price has plummeted to a $4.00 range. While management noted in the 2006 earnings press release its expectations that Merge would return to profitable growth in late 2007, the Company is still in the early stages of its turnaround process. Impairment charges reduced shareholders' equity by 57 percent in 2006, but book value per share exceeds the current share price. We further note that the Company has cash and equivalents totaling approximately $1.36 per share. Nevertheless, we are maintaining our 'Hold' rating on these shares until we see additional evidence, in the form of resumed earnings growth, that Merge has turned the corner."
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RedChip Independent Research Disclosure
The analysts contributing to this MRGE RedChip report do not hold any shares of MRGE. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the MRGE RedChip report. Additional information on the securities mentioned in this report is available upon request. This MRGE RedChip report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the MRGE RedChip report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change.