Constellation Healthcare Share Discussion Threads

[dave2608] 07/5/2016 23:55

Salpara111

Correct me if I'm wrong but you need the approval of no less than 75% of shareholders for a delisting to take place. Hardly likely is it? The directors at Atlantic Coal may have held the required percentage. You tell me as I have no idea.

[salpara111] 06/5/2016 15:03

Had a look at this a month or so ago when IC did a write up.
I like the business but the odd listing and lack of liquidity means I wont invest and I suspect that I am not alone in coming to that conclusion.
I am reminded of an AIM listed company I was looking at around the beginning of the year called Atlantic Coal (ATC) it was very clear that the business was on the cusp of a major earnings upswing and at that precise moment the directors, who owned a large share of the company, decided that they were going to delist the business, shareholders were left with either selling at a rock bottom price or remaining holders in an unlisted USA based company.
I am not saying that will happen here but I have been burned too many times by seriously dodgy AIM antics that I am very hesitant to invest, unless the business is UK based and the directors work in the UK.

[deltrotter] 23/4/2016 07:13

Got em in my sipp - no need to fill in a form.

Gee, how about some patience as well. Think 5 years not 5 months....

[dave2608] 23/4/2016 01:09

I filled out an on line form. It only took me a few minutes. If you spread bet it, you don't have to fill out any form at all.

[battlebus2] 22/4/2016 22:11

Some brokers will.

[grannyboy] 22/4/2016 21:55

I don't think there's anything wrong with the potential in these, its just the faffing about with the form, why don't they let you buy the shares then fill in the form and return it??..

[beckaroo] 22/4/2016 21:20

I bought some a few months ago and I hadn't filled in a tax form. I wish I did have to fill one out as that might have put me off buying

[grannyboy] 22/4/2016 15:29

Maybe its because you can't buy any until you've filled in a US tax form..

[battlebus2] 22/4/2016 13:45

Slow day by day drops here, one wonders why.

[andysand] 16/4/2016 19:42

I like this company. But I don't like AIM. It's not easy to trust the figures when so many companies have successfully manipulated the market on AIM. Difficult choice....I might buy a few. If it was fully listed, I would buy a lot.

[dave2608] 31/3/2016 16:44

Many pundits are predicting the Pound will weaken against the Dollar over the coming months. If that happens, good news for this share as all the revenues are in dollars. Eps in dollars/cents when converted to eps in pounds/ pence, will give eps in pounds/pence a lift.

[dave2608] 31/3/2016 16:37

An increase in earnings from y/e 2016 to y/e 2017 of just 12%, yeah right. IMO the next year figure will be smashed, making Finncap's forecast look laughable. This one has got multi-bag written all over it.

[dave2608] 24/3/2016 16:00

Not forgetting the y/e 2015 figures include only 9 months earnings for the PPP aquisition, and 3 months earnings for both for the NorthStar and Phoenix Health acquisitions. Stretch these out to 12 months for 2016 and the earnings will be even greater. Then there's organic growth and the new MDRX acquisition to add on top.

[rivaldo] 24/3/2016 13:50

Nice summary here:

http ://www.proactiveinvestors.co.uk/companies/news/124013/constellation-healthcare-technologies-inc-s-plan-pays-off-124013.html

"Constellation Healthcare Technologies Inc's plan pays off
16:42 23 Mar 2016

Constellation Healthcare Technologies’ buy and build strategy certainly appears to be working.

Constellation Healthcare Technologies’ (LON:CHT) buy and build strategy certainly appears to be working, judging by the annual results statement.

Revenues rose 40% to US$76.7mln in the 12 months ended last December, giving growth in underlying profits (EBITDA) of US$16.1mln, uo 115%.

Conversion of those profits into cash was good as money it made from operations rose 91% to US$15.5mln.

The layering on of new businesses masked a strong underlying growth rate of 8.8%.

Constellation describes itself as an RCM, or a revenue cycle management company. Essentially, what it does for more than 9,000 doctors on its books is bill and collect monies owed by government, insurers and patients.

It also provides practice management and purchasing services.

Consolidation play

Obamacare, or the Affordable Care Act to give it its proper name, has created huge upheaval for physicians, complicating the rules on payment while forcing down remuneration.

For the barely profitable small firms carrying out mission-critical billing operations, Obamacare adds a financially onerous level of bureaucracy that is often the final straw.

For Constellation, it has whipped up the perfect storm – or at the very least a great backdrop - against which to consolidate a highly fragmented market.

In December the company unveiled its fourth deal of a fairly short life as a stock market-quoted company when it paid US$30mln for MDRX Medical Billing.

Talking about full-year results, chief executive Paul Parmar said: "Constellation enjoyed a successful year across all metrics.

“We increased our revenue base and more importantly, significantly increased our profitability for the year.

“Our acquisition and integration strategy is proven and we are quickly becoming one of the largest healthcare and technology services businesses in the US.”

finnCap’s punchy price target

The broker reckons the stock is worth 310p more than double the closing share price.

It points out the business is trading on a forward multiple of less than 10 times earnings 8%-plus free cash flow."

[pj 1] 24/3/2016 10:00

edit, wrong thread again, apols!!! :-//

[the prophet] 24/3/2016 09:49

ah, many thanks for the explanation rivaldo.
I can see the sense in stripping out amortisation.

Yes, would be reasonable to expect the forecasts for this year to be increased and perhaps a maiden forecast for 2017 (don't think there is a 2017 forecast, least not before the results)


ps
I see amortisation was $3.3m for 2015, so there must have been another roughly $4m that they stripped out as well. Can't see any share based payments, or perhaps its something else. In past FinnCap notes it's always (least for me!) been a struggle to see where they get their adjusted eps figures from.

[the prophet] 23/3/2016 20:00

I did sell these a while back but still follow the company, not averse to buying a few back.

The results look good, however I'm slightly puzzled by the difference between the Fincap adjusted eps and the CHT reported eps of 11c. It seems a massive difference, and I wonder if anyone more knowledgeable than me knows why.
My understanding is 'adjusted' eps takes out one-offs like acquisition costs, although in CHT this is an on-going cost as they intend to grow mainly by acquisition.

Anyway, the company reported $7m net income which equates to 11c eps

FinnCap say the adjusted eps figures are up 87% , implying 20.4c eps (as FinnCap's 2014 adj eps was 10.9c)

I suspect, but don't know, that the FinnCap figures add back depreciation and amortisation. Whether that is fair and reasonable,o I don't know.Do other companies do the same thing?

The difference is something like $7m, so, depending on your view on the correct eps to take notice of, the historic p/e is either around 20 or around 10.

Any views welcome.

[pj 1] 23/3/2016 16:17

Still on the W/L despite selling a couple months ago and those that know me will appreciate I am not an accountant! Having a very quick look whilst only on mobile access so please check the numbers

Acid test reduces from 2.2 to 0.7

Debtors up 6.4m 75% from 8.6m, 40 % Rev growth so I wonder if one of the acquisitions had a debtor issue?

Creditors up 1.5m 50% from 3m, seems reasonable with the acquisition strategy?

Total equity exc. intangibles moves from +23m to - $12m

Any comMents welcome. PJ

EDIT. when I saw the debtors figure I expected creditors to be higher than $4.5m

[battlebus2] 23/3/2016 15:01

Back to those results, just amazed at how good they are. Once this overhang is cleared we should make up considerable ground imv...

[grannyboy] 23/3/2016 14:55

I thought i'd be able to, but was told(Jarvis) i had to post the hard copy?.

[nurdin] 23/3/2016 14:41

With TDW you can do it on-line

[grannyboy] 23/3/2016 13:40

Yes i wasn't bothered by filling the form in but i had to fill form in then get it printed off then send hard copy to my broker....I wanted to buy yesterday and was unable?!!..

[dave2608] 23/3/2016 13:24

I noticed that rivaldo. 4 sells indicated: 292k, 292k, 730k and 145k in money terms. All within the space of 30 seconds too.