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Byline: Jonah Keri
Coventry Health Care broke out of a flat base on Halloween. The stock zoomed 75% pivot to peak. It fell sharply at the start of this year before settling into a new consolidation. Volume has dried up dramatically in the last 12 weeks as the stock builds the right side of its base. Coventry climbed 5% on fast trade Tuesday. It's 23% off its high.
The managed care firm posted second-quarter earnings of 30 cents a share, beating estimates by 2 cents. Sales rose 27%, the highest percentage increase in nine quarters. The company expects full-year 2001 profit of $1.17 to $1.22 a share, ahead of First Call's mean estimate of $1.13.
Coventry's Accumulation/Distribution has climbed to a B from a C in the last three weeks, meaning funds are buying more shares than they're selling. But the Medical-Health ...