HLTH vs CMRC (Commerce One)
Commerce One (CMRC) is partnering with ORCL to provide a B-2-B market place for the automobile industry. I believe Wygod will try to convert WebMD into a market place for the health care industry like what Commerce One is doing for the automobile industry (among others). If Wygod succeeds as many are predicting, it will eliminate most competition from the gigantic health insurance and managed healthcare companies.
Here is a financial comparison between Commerce One and HLTH:
HLTH vs CMRC
Sales: $228B vs $125m
Cash: $650M vs $245M
Market cap: $1.7B vs $12B
With healthcare’s trillion-dollar market place, I can’t see why HLTH – the undisputable leader in its business – cannot catch up to the position of Commerce One. All they need to do is, maybe, to hire a visionary from somewhere like Commerce One, Ariba, Tibco, ..., and establish partnership with Oracle, IBM, or a big consulting firm to work with the healthcare industry.
At the current level, HLTH is tremendously undervalued.
The recent fall is the best chance to get a piece of the pie. By the end of the year, when everything becomes clear, HLTH may easily come up to the mid 20. |
