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Dutton Associates Announces Investment Opinion: Arcadia Raised To Strong Speculative Buy Rating In Update Coverage By Dutton Associates
ROSEVILLE, Calif.-(Business Wire)-September 5, 2008 - Dutton Associates updates its coverage of Arcadia Resources (AMEX: KAD) raising its rating to Strong Speculative Buy and a 12 month target price of $0.71. The 12-page report by Dutton senior analyst Denise T. Resnik, M.S. is available at www.jmdutton.com as well as from First Call, Bloomberg Professional, Capital IQ, FactSet, Zacks, Reuters, Knobias, and other leading financial portals.
Arcadia continues to develop its vision of retaining and expanding operations it believes will flourish in the years ahead. In specific it is focusing on its profitable home care business and the ramp-up of its DailyMed™ compliance packaging medication system. This quarter’s results mark the third consecutive quarter with positive operating cash flow, and we believe that profitability will be achieved by the March 2009 quarter. In our judgment, the shares, trading near their lows, do not reflect the changes that have occurred at Arcadia or the potential for this restructured company. While we are disappointed that the DailyMed™ program in Indiana is slower in starting than the guidance management originally provided, we believe that DailyMed™ is an exciting product for the Company and a novel system for maximizing medication compliance by at-risk patients. While we are lowering our 12-month price target for the shares from $0.87 to $0.71, we would note that this target is over 80% above the current depressed price. Accordingly, we believe it is appropriate to raise our rating from Speculative Buy to Strong Speculative Buy, particularly as new endeavors begin to make a significant contribution to earnings, significantly higher share valuations could be envisioned.
About Dutton Associates
Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.
The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $63,000 from the Company for 8 Research Reports with coverage commencing on 10/29/2004. The Firm does not accept any equity compensation. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.
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