Hi Tomato - I doubt there is any quick fix of the stock price. It is ironic though, IMHO WebMD has finally got everything in place and the main bulk of expensing is also done, now it is a matter of execution. Sure, execution is a big risk factor too, but when the moneybags like Janus poured in 100s of millions of dollars, they should have seen this coming. Internally, this is a complex set of business propositions. So one would think it will take time for the critical mass to take place.
Personally, despite my fondness of Morningstar analysis, I do not buy the MDs don't have computer argument. PCs are cheap, and they will get cheaper. Or even internet appliance. The medical field is not as prestigous as it once was. Even MDs need to evolve with the spirit of the time. Therefore, if they refuse to make their lives easier, they probably will not survive in the profession for long
Since the stock has made a new low yesterday, it is hard to see any near term catalyst to see a genuine recovery. However, I think the business model is actually getting better.
best, Bosco |
