Welcome to the Health Risk Management, Inc. (HRMI) thread.
I started this thread because there is very little discussion related to this company. I believe HRMI to be a largely undiscovered company, with a great deal of potential. I am not affiliated with the company in any way, although I do own some stock in the $10-11 range. As is always the case, do your own due diligence before investing. I am not a stock broker or professional investment advisor. I am just a shareholder.
Here are the reasons I like this company:
1. They have a very good revenue stream. Q3 revenues were $52,442,000, up 209% from $16,972,000 last year. This annualizes to $209,768,000!
2. They are profitable. Q3 earnings were $.23 per share, fully diluted. This is a huge increase from last year's $.01 per share. At this rate, HRMI should deliver about $1.00 in earnings over the next year. The CEO also stated in the Q3 earnings announcement, "We would anticipate earnings for the next quarter to exceed the current quarter's $0.23 per share, given consideration to unforeseen events in the marketplace and the Company's ability to realize operational efficiencies, maintain current clients and attract new clients."
3. Very low number of shares outstanding (4.6 million), coupled with an extremely low float (1.8 million), and high insider ownership (61.2%). Institutions own 22.6% of the company.
4. Current Price to Sales ratio ($10.75 stock price) is .3. That is NOT a misprint. .3 times trailing sales! ($49.9 Million market capitalization and $170.7 Million in trailing sales.) Given the most recent quarter's sales numbers, the price to sales ratio on an annualized basis would be closer to .25!
5. Coverage was just initiated on June 30, 1999 by Needham & Company with a buy rating. (Price target of $15.)
6. A major business re-alignment was recently initiated to attempt to increase shareholder value.
7. Insiders have been buying in the $9-11 range.
8. HRMI plans to begin an internet presence in the fall. They have a web site now at hrmi.com, but my impression is that their QualityFIRST software will be accessible via the internet. This is perhaps the most exciting part of their strategy. I have looked at WebMD (recently merged with Healtheon), DrKoop.com, and others, and I think the potential of having this type of software available via the internet is HUGE. (Especially if they branch out and offer it to consumers.)
9. There is more, but you get the general idea.
Craig |
