It's the first stock on S&A newest Phase 1 Pick...

"One new and independent PBM, however, recently went public... The company is tiny – worth around $500 million. Since its IPO on the NASDAQ exchange last year, the stock is up about 127%"

We believe it could easily return thousands of percent in gains over the next few years. Let me show you why...

We Approached A Company Insider...

Right now, this small PBM is raking in millions of dollars in contracts, many of which come from the U.S. government.

Since the summer of 2006, the stock has already more than doubled in value.

And according to my expert healthcare industry sources, this is just the beginning...

In other words, this could be your chance to get in on a super-profitable business like Express Scripts – but right at the beginning of its explosive rise.

The company recently got two lucrative contracts from the U.S. government... which means just one thing: HUGE PROFITS.

The Department of Veteran Affairs awarded a $6.9 million multi-year contract to them for taking care of their prescription drug coverage.

They also received a contract from the State of Georgia for $23.4 million to administer the state's Medicaid program.

Plus, the company won a 3-year contract with a leading U.S. supermarket chain... It now covers more than 440,000 people through the company's prescription plan.

It also won a multi-year renewal contract with a major Medicare provider in Ohio... And a 5-year renewal contract with a prescription drug company that covers 4 million people in 50 states.

The money has been rolling in...

Revenues have been increasing steadily for the past few years. In 2006, revenues increased 50% to a record $80.9 million.

Not only that, the company covered 310 million prescription drug transactions last year.

In other words, it covered 1 out of every 5 prescription drug transactions in the entire country.

Simply put, this company is in HYPER-GROWTH mode.

With all the information we've gathered, we believe this small PBM is poised to become a major player over the next few years.

It's probably the safest and most potentially profitable small-cap stock in America today.

But because we're recommending this company as part of our most elite research service – Phase 1 Investor – we went one step further: We approached a company insider for information.

Phase 1 analysts Rob Fannon and Dr. George Huang – our in-house biotech and medical industry experts – spoke to the CFO of the company...

What they gathered was this:

The company is developing a secret and highly innovative approach to pharmacy benefit management... an approach that could soon become an industry model – and change the face of healthcare.

In short, it involves passing 100% of the rebates and discounts they get through bulk purchases of prescription drugs on to their clients.

The company has already applied this new approach at a university in Michigan. The results have been overwhelmingly positive...

They helped the university – which covers about 80,000 people – save $4.5 million in prescription drug costs last year... No wonder the university replaced Caremark (one of the Big Three PBMs) – and gave a multi-year contract to this tiny company.

With this kind of success in getting profitable contracts, the stock could potentially double over the next 12 months – and possibly shoot up thousands of percent over the next few years...

But most investors have no clue this opportunity exists...

The stock is: Systems Xcellence, Inc. (SXCI)

http://www1.youreletters.com/t/1297962/12402192/826462/0/

This stock is down 22% in morning trading. appearantly did not hit earnings and sales growth expectations. Might be a buying opp.

I haven't done a tone of technical analysis on this but it looks like a large sell block went through. With relatively low overall daily volume it seems to be oversold.