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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: MikeS97707 who wrote (50593)	1/16/2013 9:55:21 AM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78705

Actually, I think that looking at HCO/MPN business as providing the growth is wrong. You are right that HCO/MPN is just recovering to pre-recession levels, so it's not really growing (much). Practically all their growth is from other business, so discussing the market of HCO/MPN is not useful. They are not really getting much new HCO/MPN business and they are not expanding to other states AFAIK (it seems that HCO/MPN and their accreditation is California specific) They are just adding additional services on top. So sustainability cannot be argued by saying that they were around for 10 years. The additional services have not been around for more than 2 years. So I think your arguments 1-3 are pretty weak. The strong argument would be to understand whether the new services can be sold to customers who are not their HCO/MPN customers. Because if they can only sell them to their HCO/MPN customers, then they gonna hit the wall really soon now. Subsidiaries - I don't think you can argue that they have them for legal reasons, since the same services were handled before by Medex (per 10K). Maybe they subed new ones in Nevada for cost reasons.