Thursday, January 7, 2010

Allscripts-Misys Healthcare Solutions, Inc. (MDRX) Analysis

Allscripts-Misys Healthcare Solutions, Inc. (MDRX) – This company offers software, services, information, and connectivity solutions that enable physicians and other health care providers to deliver patient safety and clinical outcomes primarily in the United States. The company operates through two segments, Clinical Solutions and Health Solutions. The Clinical Solutions segment includes enterprise business for large physician practices and integrated delivery networks, and professional business for smaller or independent physician practices. It provides clinical and practice management software solutions and related services. The company is headquartered in Chicago, Illinois. Allscripts-Misys Healthcare Solutions, Inc. is a subsidiary of Misys plc.

IT in the health care industry is booming right now and Allscripts-Misys Healthcare is just one of the leading companies providing IT infrastructure to the health care industry. This company is a diamond in the ruff with a current trading price of less than $20/share(1-7-2010) and a growth multiple of 82! Allscripts has huge potential for growth and inovation in health care, with it gaining new customers from all over the country. It’s most recent news came from Mountain States Health Alliance (MSHA) when it “Selected the Allscripts Electronic Health Record (EHR) and Practice Management (PM) solutions for 300 employed and affiliated physicians and mid-level providers to enhance the quality of patient care, improve patient communications, and better manage the cost of care delivery.” and will provide this service across a Four-Sate area. Read the full P/R here. This goes to show how in demand these services are especially with how the country is turning over to an entire electronic health care record database.

The companies CEO Glen E. Tullman is really taking this company to new levels, he has been with the company since 1997 and has a wealth of knowledge in the industry. Glen has been on Jim Cramer’s Tv show “Mad Money” several times describing what his company does and were it is going. Although Jim recently gave MDRX the “Sell Sell Sell” When he said “I’m saying ka-ching, ka-ching… let’s ring the register and bring home some profits. Healthcare reform may very well be history.” he made this statement on 12-1-09. I really could disagree with Jim here, with it’s trading price at $19.60(exatcly as i write this) is down from it’s 52 week high of $22.21/share this could be a nice place to start getting in. I would wait to see were it starts to level off, and see the first qtr report of 2010 and make my decision.

Technical Analysis.

As you can see from the chart this stock has been on the steady rise since it’s low of $7.61 in February and hit a 52 week high in October at $22.21. It looks as if that $22 mark is resistance and as you can see it tested that mark at the end of October and failed to break it. It does have some good support around the $18ish area were it most likely will hit and bounce off of. The volume is pretty low with an Average Volume (3 month) 905,897 shares traded. I did get a MA(4.9) cross to the down side with an ADX below 20 signaling that it is selling off and headed lower. This needs a good momentum push to the upside with a good amount of volume to break the resistance barrier.

I like Allscripts Fundamentally but Technically it needs to improve. Although this would be a great opportunity to pick up some shares for cheap.

Quick Glance at Allscripts-Misys Healthcare Solutions, Inc. (MDRX) Fundies….

Market Cap – $2.86B
EPS – 0.24
Growth Multiple – 82 (current market price / eps = M)
P/E ratio – 83.22
Total Cash – $84.85M
Debt – $41.19M
Qtrly Revenue Growth (yoy): 77.70%
Shares Outstanding – 145.13M
Float – 61.94M shares
Recent Analyst Coverage.
18-Dec-09 Maxim Group Initiated Buy
18-Sep-09 Caris & Company Initiated Above Average
18-Sep-09 Piper Jaffray Upgrade Neutral

References: yahoo Finance, Finviz.

No comments :

Post a Comment