IMS Health Wild Ride: Is It Time to Buy?

(IMS Health article updated for closing price/volume and comment from investor.)

NORWOLK, Conn. (TheStreet) -- Shares of healthcare industry data provider IMS Health(RX) dropped off the end of the world on Friday morning when news of a potential amendment to the congressional healthcare overhaul spelled potential doom for IMS earnings and a planned acquisition of the firm.

But did the amendment really spell doom for IMS?

The market seemed to think that might be the case when the opening bell rang, as IMS shares fell more than $3. But by mid-day the beating had moderated and IMS had climbed halfway back to its closing price yesterday of a little over $21.

IMS was down just over 6% to $20.05 at the close, off a Friday morning low of $17.98. The trading action was furious, with more than 45 million shares being traded by day-end, versus an average of 7 million shares.

With shares still off a 52-week high of $21.67, but down from pricing that had been achieved based on an expected acquisition. So did the freefall in IMS shares set off one last opportunistic buying window for investors before an upcoming acquisition?

HMOs were up with big gains on Thursday on the most recent news about the congressional overhaul.