Cbaysystems Share Discussion Threads

[stegrego] 22/5/2009 08:36

Doing ok thanks, ditto to you.

[cambium] 22/5/2009 08:32

sorry Steg, should of addressed it to you too, many thanks, hope your well?

[stegrego] 22/5/2009 08:29

154,991,144 x 0.38 = 58,890,000

[cambium] 22/5/2009 08:27

Hi Nurdin, is that 56m mkt cap right?

[stegrego] 22/5/2009 08:24

Can buy these on Etrade, which i have a small account with. Jiggled a few things around and bought a whopping 4500 as a very good odds punt.

Ta for the info Nurdin. Hope Tuesday sees some good results and outlook - oh and also that people actually notice the share!

[nurdin] 22/5/2009 08:08

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

Current

-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

[stegrego] 22/5/2009 00:19

Nurdin,

Really cant make up my mind on whether to invest here or not.

Loan notes and convertibles always bother me.
As do lawsuits (although all gone now?)

Also, dont quite understand how MEDQ has turned around (huge net loss 08 [huge impairments so really a small loss or was it $20 mill profit!!??], loss 07 etc) or how CBAY managed to pay $11 per share last year and then this year they hit a low of less than $1... $2+ dividend paid?

Also the fact that there seems to be about 2 trades per month doesnt help matters!

I see results are out on Tues, which means that tomorrow is the last day to buy prior to the results. Then again, i have no clue what the results will say!

If i was to buy it would only be say 5000 shares anyway and it does look undervalued by a considerable way, but these holding companies rarely get to an share price that is a sum of their parts.

Dazed and confused

[nurdin] 21/5/2009 21:29

MEDQ up 3% in a declining market

[nurdin] 20/5/2009 17:53

MEDQ likely to break out on Nadaq...up over 2% so far

[nurdin] 20/5/2009 12:13

Own up who bought that 12.5k? :o)

[nurdin] 19/5/2009 21:29

Dunno if they trade through PLUS Steg, but the MMs upped the bid by a penny for some reason.Perhaps the Indian influence?

[stegrego] 19/5/2009 21:23

Did anyone actually buy any shares though as im not seeing any trades?
Do they trade through Plus too?

[nurdin] 19/5/2009 21:08

Seee Medquist is holding steady on Nasdaq with price at $4.39...up a smidge at 1.39%.

Cbay also ticked up on bid today which bodes well for the coming week...results very soon I have been told but no firm date as yet.

[nurdin] 15/5/2009 08:48

Cheers Steg for posting.

The market has completely overlooked CBay and I agree that the illquidity may have something to do with it.I am trying to persuade the company to get the shares on CREST....and release some shares to the market.

08 results from Cbay are due very soon but will not show the full benefit of the MedQuist acquisition.The earnings growth this and the subsequent years however should be very robust.

In a note issued by Jeffries(house broker) last Novemeber,they had pencilled in eps of 9c this year rising to 12c in 2010.The forecasts are likely to be revised upwards by a big margin imo once Cbays full year results are out.

[stegrego] 14/5/2009 18:54

Giving this the once over Nurdin...

Initial 15 min glance says you are probably right. Picture seemed to change with the last Q results with the price jump from 2 to 4 dollars.

Incredibly illiquid though and you cant trade them with Hargreaves Landsdown.

[nurdin] 13/5/2009 14:59

MEDQ up 2% on nasdaq despite the weak market...

[nurdin] 13/5/2009 11:15

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

[nurdin] 02/2/2009 11:19

Very odd transaction

CBaySystems was notified on 30 January 2009 that on 23 January 2009 Mr. Raman
Kumar, Vice-Chairman and Chief Executive Officer, disposed of 164,733 ordinary
shares of US$0.10 each in the Company for total consideration of approximately
GBP144,886 representing GBP0.8795 per share.

Sold at 88p? Sign of things to come imo...:o)

He still holds over 3m shares thouh..

[nurdin] 23/1/2009 08:47

Looks set to move up strongly today....

[nurdin] 22/1/2009 16:43

A year ago, CBay announced the launch in the US of CBayPraxis(now rebranded KypsTM ), an integrated practice management solution for physicians. The software enables physicians to outsource many of their back office functions to CBay including billing, insurance claims processing and management, insurance follow-up, and transcription services. Practices are charged on a 'per encounter' basis, per patient, meaning there is zero upfront capital investment or licensing fees.
I understand the product is gaining traction in the USA now and this should accelerate once Obamas health care policies come into force....

[nurdin] 22/1/2009 16:07

Spread could be putting off some punters but this will soon narrow imo

[cambium] 22/1/2009 13:31

starting to fly now, no position yet!

[nurdin] 22/1/2009 13:24

Well guess I will have to enjoy the ride all by myself :o)