Constellation Healthcare Share Discussion Threads

[nurdin] 29/2/2016 20:21

All those trades are buys by the way...one of them is mine so I know :o)

[nurdin] 29/2/2016 12:36

Gosh they make it so difficult to buy this stock...no wonder there is hardly any volume !

[nurdin] 29/2/2016 10:37

Wonder why they call it a speculative buy when the fundamentals and the forecasts look so great.Hope no one got stopped out at 158p.

[rivaldo] 25/2/2016 14:50

Nice piece in Techinvest's January issue not posted here before:

"Constellation Health (CHT; AIM) # 168.5p

The Company announced the acquisition of MDRX, an Ohio-based provider of outsourced hospital and private practice management to independent and health system-based physician groups in the US. Services include outsourced billing, collections, operations and financial management. The business also has
offices in Chicago, Cincinnati, Cleveland, Columbus and Wheeling. Constellation will pay a maximum $30.0m (£19.8m) cash and the acquisition will be the Company’s fourth since IPO last year.

In addition, Constellation announced an equity placing and subscription at 160p per share, raising £30m. CEO Paul Parmar, CFO Sam Zaharis and directors John Johnston and Sir Rodney Aldridge all added to their shareholdings via the placing or subscription.

For the year ended 31 December 2014, MDRX achieved revenues of $31.5m and
adjusted EBITDA of $4.7m ($3.4m after exceptional costs of $1.3m). Unaudited
accounts for the year to 31 August 2015 show revenue of $31.6m and underlying EBITDA of $4.8m. Around 80% of revenues are derived from retained clients, paying either fixed fees and/or fees based gross billing collections. The business counts 150 active clients and employs 420 people. Constellation
believes around 150 of these roles can be transferred to India.

Constellation also updated on current trading and expects full year EBITDA
towards the top-end of market expectations. This is thanks to a combination of stronger than expected organic growth and the integration programme being ahead of schedule.

House broker FinnCap expects revenue of $69.7m for FY2015 (31 December year-end) and adjusted EBITDA of $22.6m. This corresponds to eps of 15.6c.

On top of strong organic growth, Constellation is enjoying the benefits of cost
synergies from its acquired businesses.

Continued speculative buy, but with stop-loss at 158p."

[battlebus2] 24/2/2016 21:44

Hope you enjoyed the break Riv, Finn Cap reiterated their buy stance and 310 target today.

[rivaldo] 23/2/2016 09:26

Hi battlebus, you guessed correctly re hols :o)) Takes a while to catch up....

Looks like I was right about there still being stock around. Considering the recent £30m placing was at 160p I suppose institutional demand has been satisfied temporarily, so any sellers are being offered lower prices.

[battlebus2] 22/2/2016 14:57

Thanks Mr Benn.

[mr_benn] 22/2/2016 14:56

imppllc.com/?inc=doctors&p=doctorsmain

just cut and paste the above if the other link was problematic.

[mr_benn] 22/2/2016 14:51

Rivaldo and All

Im sure Shawn will bring a lot to the table especially being on the board of Integrated Medical Professionals :

hxxp://imppllc.com/?inc=doctors&p=doctorsmain

Their combined revenue stream must be fairly sizeable!

[battlebus2] 22/2/2016 13:58

Come on Riv keep up, you must have been sunning it up last week :))
Yes a great appointment...

[rivaldo] 22/2/2016 13:42

Great new non-exec Director appointment too last week. As "a founding partner of a dedicated healthcare investment bank in the U.S" he should bring plenty of business and advice CHT's way:

[rivaldo] 22/2/2016 09:10

Nice tip in the Mail, and good to see the price back above 150p. I'm assuming the trades at 150.86p are buys, so some stock - and good prices below the midprice - available at present.

Excerpts:

"The group is expected to deliver a 28 per cent increase in turnover to $69.7 million and a 60 per cent rise in profit to $15.6 million for 2015. This year turnover and profit are expected to almost double."

"when Constellation joined Aim in 2014, he (the CEO) put $20 million of his own money into the firm and the board includes Sir Rodney Aldridge, who built outsourcing giant Capita Group into a FTSE 100 firm from nothing.

Midas verdict: Constellation operates in a growing market and Parmar is committed and ambitious. At 148¼p, the shares offer good value to the adventurous investor."

[saucepan] 21/2/2016 19:06

Just a postscript: I wonder what effect the challenges of trying to buy CHT shares will have on activity in the morning?

For anyone looking at CHT for the first time, you will find some relevant discussion between posts 318 and 330 on this thread.

[saucepan] 21/2/2016 10:23

We discussed above: where is the buying interest going to come from? Now we have a start :-)

The Midas piece is very well written and compelling - both in terms of explaining the business and making the investment case.

Thanks for flagging, del.

It will be an interesting week.

[cheshire man] 21/2/2016 08:20

You two beat me to it !

[battlebus2] 21/2/2016 07:58

Yes good old Midas again. Should see a few adventurous buyers tomorrow.

[deltrotter] 21/2/2016 07:40

Main tip in the mail on Sunday:

[saucepan] 15/2/2016 14:04

From the biodata - agreed, bb2; augurs well.

[battlebus2] 15/2/2016 12:33

Another impressive board appointment......

[battlebus2] 11/2/2016 22:09

Thanks Rivaldo, hope to see that $400 million in time.

[rivaldo] 11/2/2016 22:01

New interview with the CEO....he did subscribe for £2.65m of new shares in the December placing at 160p, so he's been as good as his word as a "definite buyer" at these prices

http ://www.proactiveinvestors.co.uk/companies/stocktube/4650/constellation-healthcares-true-valuation-closer-to-us400mln-says-boss-4650.html?utm_source=Sign-Up.to&utm_medium=email&utm_campaign=7163-347670-Proactivity+-+11%2F02%2F2016

"Constellation Healthcare’s true valuation closer to US$400mln, says boss
15:38 11 Feb 2016

Paul Parmar, chief executive of Constellation Healthcare Technologies (LON:CHT), says that his company is undervalued and he is a “definite buyer” of the shares at the current price.

He attributes general market volatility to the suppression of the stock and says the true valuation of the company, which provides billing services to doctors in the U.S., is closer to US$400mln than today’s market cap of US$188mln.

Parmar spoke to Proactive after confirming the company’s fourth acquisition since Constellation listed on AIM in December 2014. An upfront payment of US$28mln has been made for MDRX Medical Billing which could rise to US$30mln depending on MDRX's performance over the next two years."

[nurdin] 10/2/2016 14:06

Looks interesting but guess they are quite illiquid. Anyone know what the normal market size is?

[battlebus2] 10/2/2016 13:46

That's the trouble saucepan, very few will risk funds in these markets. I'm still buying and selling but i'm sure like everyone else there's a lot less in the pot...