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Real-Time news about Cbaysystems (London Stock Exchange): 0 recent articles
|237gmoney: Well the company is still undervalued at the current Mkt cap based on the cash and investment in MEDQ. still probably 50% below what it should be but at what discount should this share price trade at with its investment in MEDQ?
Hopefully this gets a mention in the press soon so we get more interest in it.|
|237gmoney: And another 7k buy there gone through....MEDQ is up today as well, touched $9.2 a share earlier again. But I guess there will be no major share price action until CBAY's Q2 results are issued.|
|nurdin: Those two 40k trades look like roll overs but that shouldnt have affected the share price....unless we see some further trades at close.|
|237gmoney: Just back from holiday, seems I timed it just right for a change. MEDQ is picking up again and now well over $9 a share. CBAY still lagging well behind the MEDQ value so hopefully the share price will start to pick up here soon.
when are CBAY likely to release their 2nd quarter results? that should push the price up some more.|
|nurdin: I see MedQ is straddling $9 now and is on a breakout...not that it will make diddly bit of difference to the CBays share price..
For what its worth ,CBay stake in MedQ currently worth £143m....CBays market cap £78m|
|237gmoney: From the graph this seems to be heading back to the 70-80p region as it stayed there for a around a year. That would seem about right with the current value of MEDQ and the current exchange rate. MEDQ is very sensitive though in terms of share price movement. down yesterday a bit but still around $8 a share.|
|237gmoney: Nice to this moving quicker than I thought....As word gets out this wont take long moving up as the value is still well below the original purchase price of MEDQ $287m. The MMs will want to move it up quickly as well so they do not get caught out.....
I bought via TD waterhouse. no problem. Although they wont let you trade on a t10 without enough credit on your account but with this share you will have to hold for a while at least to make a decent profit. By the end of the year this share price should reflect the true value against MEDQ.|
|237gmoney: This just needs a kick up the jacks. I know investment companies usually trade at a discount to net asset value as I often traded Starvest (sve) a few years back and made quite a bit one that but in property investment vehicles usually trade at 40% discount to NAV but investment related companies where the tangible asset is another company which is doing well, I think the discount to NAV should be much lower.
This share needs a rerating but all depends on the MEDQ share price. at the moment CBAY is lagging far too much behind. (Hence why I bought) the only problem is hardly anyone else knows about it at the moment....|
|nurdin: Hi Steg
A litttle bit of background first.
-Cbay acquired MedQ from Philips at a price of $287m back in May08
-I understand Philips themselves had paid $2bn for MedQ,seemingly to get ownership of their sophiisticatd speech recognition technology
-Cbays acquisition was paid for as follows:
$98m in cash
$91m in convertible loans
$98m bridging loan
-to fund the acquisition, Cbay placed $123m with Sac Private and Lehman Brothers
-at the the time of the acquisition MedQ had copious cash on the balance sheet ($120m from memory but will check on that)
-the collapse in MedQs share price post Cbays acquisition was triggered by ,first the the severe down turn in the broader markets, second the adverse publicity stemming from the 16 class actions that MedQ faced and thirdly,the poor market perception of MedQs management
-I also suspect that Lehman became forced sellers during the hiatus of last year
-all class actions have now been resolved and settled
-new management team has been installed who appear to be turning the business around nicely
-the management did a kitchen sink job on their FY08 results, reporting severe impairement losses and charges from the legal actions
-nevertheless they reported pre exceptional EBITDA of $27m for the year
-Q1 09 results underpins the turn around there but there are likely to be further impairement charges this year..need to look into that though.
-I have no idea what the Cbay results on Tuesday will show but a recent conversation with the company suggested trading is strong.... not sure what their cashflow is like though
You are right though that there is very thin trading in Cbay..perhaps because the stock is not known that well? The lack of liquidity in the shares doesnt help either.
It has to be your call my friend but I feel Cbay are grossly mis priced here|
|nurdin: Dont know if anyone is following CBAY but they look fundamentally mispriced at current levels imo.Here is why:
-they own 69.5% of the Nasqaq listed Medquist
-Medquist have been transformed by the new management installed there by Cbay
-all the outstanding legal actions faced by Medquist have now been resolved and settled in and out of court.
-the management did a 'kitchen sink' job on last years results which didnt look pretty
-the transformation has been appreciated by the US investors and the Medquist share price has risen sharply on Nasdaq specially after they reported their 09 Q1 results:
-medquist are currently capitalised at $165m(£110m) against Cbays market cap of just £51m
-MedQ reported earnings of $6.8m for Q1.Annualised, that translates to $27.2m,ignoring any benefits of synergies between Cbay and MedQ which are on going.
-so Cbay look to report earnings of $19m or £12.7m from the Medq ownership alone
-with 155m shares in issue,that translates into eps of about 8p, just from MedQ operations alone
-Cbay themselves are doing very well(so I understand) and could easily add another 4p minimum to earnings
-that values Cbay on an earnings multiple of 2.9 !!
Way too cheap if you ask me,specially given that they stand to benefit significantly from Obamas Healthecare reforms announced recently|
Cbaysystems share price data is direct from the London Stock Exchange