It is my opinion that this stock is way overvalued at this time based on no real earnings, and especially no real growth. When I bought back in April, things looked pretty good(potentially). I never would have guessed that it would have taken them so long to rid themselves of the overseas investor problem. I am guessing that that issue has plagued them for the past 6-7 months which was THE main reason growth was so slow. It is definitely a positive for the issue to be resolved, if it is in fact resolved.
Today there is still a potential company, but with some new hurdles to jump over. They have put out over 8 million shares(regardless of how they are to be used-restricted, whatever) which, when fully diluted will hurt eps BADLY, but with the new rules in place, eps may look better than it really is. They have not EARNED any money yet. I think we can all agree now that selling a cath lab and using settlement money to boast about positive eps is not truthful to future potential. Without it, there are no earnings.
From here they need to grow. Morrell has high hopes for the pain clinic-he supposedly knows people who went from nearly 0 revenues to $40 million in a year. That is possible, but unlikely. "Pain medicine" is a growing area of of the medical community, so it should fair well if management knows what to do. We'll see. They are into pakistan-I don't know about that. We'll see again. Laser what? I think that will be a weak generator in terms of total revenues, so they may have been looking for a good profit there. Smart. Home health-very smart move. Let's see what they can do to compete with larger home health care providers.
Overall, a better outlook than before, but the management needs to show us something going forward. I have watched ABTX acquire over 270 million in just a few short years, but that does not mean MIOA won't. MIOA is in a much more competetive environment than ABTX, and healthcare all around is in turmoil right now. Health care stock are the future, but I have decided that it is wrong to profit off people's illnesses. I work in the field and this is my belief-but that won't stop companies from making money, even if it is one I work for. MIOA needs to acquire more physician practices and come through on promises made in the past. It seems like everything they have said would happen hasn't.
Final words. TOO many shares for too little earnings. No earnings!
Thanks for the floor.
Miller |
