"Medical technology company Kinetic Concepts Inc. (KCI 36.01, -1.73, -4.58%) said Wednesday that its third quarter net profit rose 20% to $64.6 million, or 91 cents a share, from $53.9 million, or 75 cents a share, a year earlier. Revenue for the quarter edged up 0.2% to $504.4 million from $503.3 million. Analysts polled by FactSet had been expecting earnings of 92 cents a share on revenue of $503 million. The group said its results were helped by an improving gross profit margin, which rose 4 percentage points to 55%, thanks to higher productivity in its field service operations and the higher margins associated with its regenerative medicine business unit. The group reaffirmed its guidance for fiscal 2009 earnings of $3.95 to $4.10 a share." from AP

What is not to like?
Increased revenue, increased margins, Great guidance, and a forward PE < 10
The earnings "miss" of 1 cent can be manipulated
- besides 92 cents vs 91 - what's the problem?

Today's drop is some large mutual or hedge fund selling.
Probably taking profit and moving it somewhere else.
"buy on the rumor and sell on the news"

Notice that the selling stops at the 50 day moving average.
KCI did get ahead of itself but should be fine here.

Will have to consolidate at 35.50 to 36 for a few days.
Do not see any problems in the longer term

Despite all this BS rhetoric from Washington, KCI will not be affected by it.
Their equipment is too integrated and essential for the basic functioning of any hospital.

Nibbled in here today at 35.50