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

To: E_K_S who wrote (55765)	7/28/2015 8:07:05 PM
From: Sultan	Respond to of 78748

Per yahoo finance, market cap for QSII is $ 753m.. MRGE however is shown as $ 531m.. FWIW.. I have not calculated it myself so you may want to recheck it at other websites..

To: E_K_S who wrote (55765)	7/29/2015 12:01:59 PM
From: bruwin	Read Replies (1) \| Respond to of 78748

Looking at CNP's business performance, based on their last Annual, seeing as there's only been one Quarterly since then ... EBITDA/Revenue = 21%. Good there. Debt Expense/EBITDA = 24%. High I'd say. That's where a fair amount of left over Revenue goes, it seems. Pretax Return/Capital = 4.5%. Very Low. Net Income/Revenue = 6.6%. Low? We see that they pay, based on current price, a 5% Dividend. Nice. Seeing as share price is lowest in 2 1/2 years, can we assume it's likely to move off this level ? If so, what's the catalyst that's likely to improve its financials which would be reflected in price ?

To: E_K_S who wrote (55765)	7/29/2015 8:38:33 PM
From: Graham Osborn	Respond to of 78748

EMR/ RCM is such a tough business to be in now. The last 10 years I've known at least 10 doctors who built their own EHR portals and sold them off to bigger fish. At this point the market is so commoditized that you can go online to one of the aggregator sites, put in your info, and get called by about 20 different vendors all trying to sell your practice the same darn thing. What it really comes down to is the customer service ratings, which is the last thing you want to hear when you tie "cloud" to "scalability." Now it seems to be primarily a trench battle to see who can partner quickest with the health systems that have bought/ are buying all the practices, and the Epics/ Cerners of the world seem to be upgrading to the cloud and capturing the big ones. QSII is at this point growing through small state health system partnerships and by acquiring smaller related service offerings. I see them basically migrating to a billable service model while tending the customers they already have. Management resignations seem primarily driven by boredom. The chart is pretty impressive but at 25x earnings and >10x EBITDA I'd say the economic reality has not fully set in.