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AMN Healthcare: (NYSE:AHS) April 14 close: $14.60 52-week range: $14.25 (Feb. 15, 2008) - $25.25 (Apr. 30, 2007)

AMN Healthcare provides physicians, nurses, therapists, and med. techs on both temporary and permanent assignments. In 2007 they had contracts with over 2000 medical facilities.

Revenues hit an all-time record last year at $1.164 billion. In 2007 they earned $1.05 /share - their second best year since coming public in 2001.

Value Line and Zacks now estimate 2008 EPS of $1.20 and $1.18 respectively, making AMN Healthcare's forward P/E under 12.4 times. These shares have traded at average P/Es of > 20x in five of the previous six years.

*Here are some relevant stats on AHS shares:

Year...........EPS(cont. ops).........Aver. P/E ....... P/Sales .....P/Book Val........ ROE .....Yearly High

2007............. $1.05 .................20.4x .............0.51x .........2.10x ...........13.2% .... $29.10
2006............. $1.02 .................21.8x .............0.88x .........3.89x ...........14.3% .... $28.30
2005............. $0.69 .................22.9x .............0.90x .........3.19x ...........11.5% .... $20.70
2004............. $0.55 .................27.8X .............0.79x .........3.30x ...........12.7% .... $21.60
2003............. $0.95 .................14.5X .............0.96x .........4.16x ...........32.6% .... $19.00
2002............. $1.12 .................22.1x .............1.02x .........2.34x ...........17.7% .... $37.40

* Source MSN Moneycentral.com and Value Line

AMN Healthcare is now at the lowest P/BV, the lowest P/Sales and the lowest P/E since April of 2003. Buyers of these shares back then saw them bottom at $8.90 before more than doubling to $21.60 in under a year.

What would be a reasonable target price for AHS? At even 18 times the $1.18 estimate they could reach $21.24 /share. A bit over twice book value would support about $21 as well. Even a 0.75x price/sales brings these shares back to > $27.

From today's quote of $14.60 to even $21 would be a 43.8% rebound. Crazy? Not at all. AMN Healthcare has hit $20.70 - $29.10 at its peaks in each of the years 2004 - 2005 - 2006 and 2007. Sales, earnings, book balue and cash flow are all well higher now than they were in those past years.

President & CEO Susan Nowakowski bought 2000 shares on the open market at $16.05 on April 3rd.

Demographic trends favor this business for the long haul and the extremely low valuation seems to mitigate short-term risk. The absoulte low share prices in 2006 & 2007 were well above today's close at $17.30 and $16.40. Even the horrible start to 2008 hasn't seen these shares below $14.25.

With upside of 40 - 50% and what appears to be low downside, I think AHS shares may well nurse your portfolio back to health.

Disclosure: Author owns shares and is short puts on AHS.

Source: AMN Healthcare Services: Just What the Doctor Ordered