Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: E_K_S who wrote (55419)	7/28/2015 7:33:40 PM
From: E_K_S	Read Replies (3) \| Respond to of 78745

Quality Systems Inc. (NASDAQ: QSII) - A 30% add @ $12.27/share as this one traded at/near a 2 year low Merge Healthcare Incorporated (NASDAQ: MRGE) - Sold 25% of high cost shares bought 4/2015 booked 4% gain CenterPoint Energy, Inc. (NYSE: CNP) - Watching this one after closing position in 10/2014 Quality Systems Inc. (NASDAQ: QSII) is now 7% undervalued according to it's GN value of $13.36/share. I added a few more shares after reviewing their recent earnings and conference call. The company sold off 25% (way too over sold IMO) when they reported that Revenues came up short, specifically their Software license/hardware revenues. This is not good for a growth company but it's the underlining story that explains this shortfall. The company is in product transition (similar to what Adobe did) moving customers from a stand alone software/hardware model to it's Cloud Service model. Cloud Services were +26% Software license/hardware revenue (drives future support/maintenance revenue) fell 18% Y/Y in Q2 to $16.2M. Software-related subscription services were better, rising 26% to $12.2M. Support/maintenance +7% to $43.7M; revenue cycle management and related services +21% to $20.2M; electronic data interchange and data services +10% to $20.2M. Merge Healthcare Incorporated (NASDAQ: MRGE) is my other Health management software company. They reported earnings too and were + 10% on good sold revenue growth. I see better value in QSII as they have no debt (MRGE has $219mln in debt), MRGE has only 50% of the revenues of QSII and 30% more common shares. The Market Cap is similar for both companies about $750mln. I like the sector as I think it is undervalued, so I own both companies. Combined, I have a 1.5% portfolio position in equal market value price (based on cost). ---------------------------------------------------------------------- CenterPoint Energy, Inc. (NYSE: CNP) hit my value screen today as it's close to it's GN value of $17.50/share. I closed out my position late last year at $22.00/share based on it's dividend falling below 5%. It's dividend now provides a 5.5% yield. CNP has a hidden jewel it's NG infrastructure assets. CNP owns approximately 11,900 miles of gathering pipelines, 7,900 miles of interstate pipelines, and approximately 2,300 miles of intrastate pipelines. BV is $10.63/share. CERC holds 50% of the management rights in Enable GP, LLC and will hold a 40% interest in any incentive distribution rights to be held by Enable GP, LLC with respect to Enable Midstream Partners, LP.; CERC holds an approximate 55.4% limited partner interest in Enable Midstream Partners, LP. I plan to start buying CNP shares at/below $18.50/share as I sell off some of my MLPs in the same sector. I like CNP's management rights as the GP owner in their resource division. EKS