Cerner (CERN)

To get an idea of the type of investment CERN is consider the year to year growth rates:
Sales - 16%, 21%, 10%.
EPS - 32%, 22%, 18%
BVPS - 20%, 13%, 16%
ROE - has improved by 27.5% over this time period (2004-2007)

This company will have consistent earnings due to the contractual nature of the revenue stream. They have proven it over the past four quarters by exactly making EPS estimates twice and having a very small positive surprise in the other two. This is a long-term investment, that is priced correctly by the market at 26x next years earnings for the rate at which is growing. There is no reason that earnings would deviate greatly from estimates.

This stock should continue to provide investors with growth from a sector that has unquestionably high upside. It has proven itself to investors, is becoming more efficient, and is growing at a rate faster than the industry average. This is pretty much all you can ask for sometimes in industries in which you do not have an information edge.

The stock got sold off early today on some analysts CF concerns. Reads to me like noise. Sometimes you gotta take the lay-ups when you can get them. However, this is the rare lay-up that has the potential to double your investment many times over. The stock has done nothing but go up since 2003 with a 530% return since May '03.