Transcend Services (TRCR) provides technological solutions to doctors, hospitals and other health care services. In particular, Transcend provides speech recognition and documentation services, which reduces cost and increase efficiency for health care providers.
You might be aware of a company that provides speech recognition services to consumers, Nuance (NUAN). Nuance manufactured the popular Dragon voice recognition product. Transcend takes the Dragon concept one step by specializing in medical transcription and then providing outsourced solutions.The company is expected to grow earnings by 45% in 2011 and by 15% in 2012, yet the stock trades at only 18 times trailing earnings and 16 times forward earnings. The shorts don't necessarily buy into the story at Transcend as about 6.5% of the outstanding shares are sold short with nearly a 13 short ratio. The increasing documentation burden that medical professionals and facilities are having placed upon them by the government, insurance companies and legal profession, will provide fertile growth opportunities in the future for Transcend. Transcend is one of TheStreet Ratings' top-rated health care technology stocks.