In HLTH here. Aiming for >$10 target in 3 months.Baby boomer play for a long time, HL
In HLTH here. Aiming for >$10 target in 3 months.Baby boomer play for a long time, HLTH is the best Web medical services company, I bet you heard about WebMD, I am using it. Nice Technical rebounce chart. HLTH has strong financial background especially a lot of cash.
Here is the business report and financial background:
Revenues should remain on an upward trajectory at Emdeon Corporation (formerly WebMD Corporation). Sales at the company's Business Services group appear likely to advance slightly faster than analysts envisioned , reflecting the contribution of recent acquisitions and better demand for its newer product and service offerings. An increase of 11%-12% may be in the cards for this year.
Meanwhile, Emdeon's second-quarter earnings provided some degree of optimism that its Physician Services segment has finally gotten traction; it may be able to move forward at a much improved pace, given the reported infrastructure improvements and the resulting ability to implement systems in a more effective manner. At this point, top-line growth of 5%-6% seems probable, with an operating margin of some 10%. Analysts continue to anticipate steady progress from Porex, the company's plastics business.
Emdeon is still working its way towards offering 10%-14% of WebMD Health to the public. Revenue from the Internet portal is growing fast, and it is likely to continue doing so. WebMD Health is increasingly the site of choice for health-related information by the general public; it also has a large professional following. Accordingly, its contribution to Emdeon's overall financial performance should please most investors. In terms of the IPO, details remain sketchy, since, at this writing, the registration statement has not been made effective.
The company recently issued $300 million in convertible debt. The senior notes were privately placed to institutional investors under Rule 144A; their coupon is 3.125% and each $1,000 note is convertible into 64.2446 shares (at $15.57). The new debt does not alter Emdeon's financial strength, particularly in view of the upcoming IPO of WebMD Health.
Emdeon shares are top-ranked for Timeliness. This stock, which has performed nicely so far this year, continues to receive good market support. Each of the company's businesses seems to be doing well; the above-mentioned IPO is also a factor here. That said, new commitments are probably best made by aggressive accounts.
Mean Analysts target is 10.9, Valueline lowest target is $11 with high target $19. So far, JPmorgan holding Strong Buy on it, Raymond James holding "outperform" on it. Check this out:
http://finance.yahoo.com/q/ao?s=HLTH
I am bullish on HLTH, both in a short term and long term.