Cbaysystems Share Discussion Threads

[nurdin] 07/8/2009 16:55

If MedQ hit $9,which they look very much like doing so,CBays stake will be worth £143m!

Cbays market cap still well behind at £78m at 50p !!

[nurdin] 07/8/2009 16:47

MedQ look to be on a breakout right now...CBay should follow I hope.

[237gmoney] 07/8/2009 14:55

Nurdin, it was always going to happen. The value is still here for all to see. MEDQ is worth almost as much now as when CBAY bought it 2 years ago and yet CBAY is only worth a 1/2 of the value it was back then. Its like buying £1 coins for 50p at the moment so expect this to carry on going up as more people become aware of it.

The dutch investor who picked up 7.5m a while back shares wasnt silly.

[nurdin] 07/8/2009 14:45

Breaking out now

[nurdin] 07/8/2009 14:40

Well I say...we are bing recognised :o)

[237gmoney] 07/8/2009 09:20

No been here a while, not posted on this thread before last week though. Have always had the same name. Nice to see MEDQ back up again last night when the markets were down.

[stegrego] 06/8/2009 21:54

237g - you seem like a new name, but im guessing your an alias of someone whos been around a while... care to enlighten us?

[nurdin] 06/8/2009 16:03

You would expect some profit taking at MedQ after such a decent run....amazed it hasnt gone down more.

[237gmoney] 06/8/2009 15:55

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.

[nurdin] 06/8/2009 14:40

Change in management,discernible impact on earnings,Obamas healthcare reforms taking shape...emphasis on cost saving and health insurance etc all colluding to help sentiment towards MedQ

[237gmoney] 06/8/2009 14:08

I notice CERN which is another direct competitor to MEDQ has risen from $35 a share to $65 a share in the same time as MEDQ has risen from $2 to $8 so the market for this type of company must be in demand at the moment.

MEDQ is tiny in comparison with some of the big players so potential for a buyout now that MEDQ is back on the up. all if buts and maybes though. Just trying to think of the reason why MEDQ is doing so well at the moment as it cant all be down to a change in the results....

[237gmoney] 06/8/2009 13:51

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.

[nurdin] 06/8/2009 13:06

Own up ..who bought 10400 at 48p? :o)

[nurdin] 06/8/2009 09:17

You can trade them with TD Waterhouse...as normal Aim stock

[boadicea] 06/8/2009 08:28

Noted this am that SelfTrade don't recognise CBAY and BSL quote it as "currently suspended from trading."
Do I assume it is classed as a foreign stock (US common stock) although quotetd on LSE?

The last trades shown were on Tuesday.

[nurdin] 05/8/2009 09:17

Nice to see some interest here...and yes the US GAAP reporting standard does confuse the issues.

But once you sift through the numbers,its not hard to work out the underlying operating performance imo.

-MedQ have already reported non-GAAP (ie adjusted) EBITDA of $28.5m for the six months to June

-tax rate sems to be about 12%...low but presumably due to past losses?

-net adjusted earnings on that basis is therefore $25m...or £15,2m at the current exchange rate ($1.65 to £)

-CBays share of the earnings works out to be around £10.64m...or around £21m annualised

-full year eps for CBay should be atleast 13.5p..just on MedQ contribution

-CBay therefore appear to be trading on a PE of around 3.3 if my sums are correct....could be much lower if we add CBay contribution which is as yet unknown

-cheap I think

[237gmoney] 04/8/2009 21:14

The balance sheet is a bit difficult to understand when your not used to US accounts but if you concentrate on the usuals then you should be able to make an informed judgement. Debt, cash, sales, cost of sales.

One thing I noticed which was odd was customer accomadation was over $5m last year but nothing this year.....189 employees were made redundant in the cost savings yet they still employ close to 5,000 people.

Like nurdin says CBAY report after MEDQ so we should know roughly how well CBAY results will be. CBAY report quarterly now as well so we should have the 2nd quarter results soon which should make people more aware of this company.

[interceptor2] 04/8/2009 20:39

237gmony - Thanks for highlighting these on IGP thread, they do look undervalued, and the potential looks exciting. But like boadicea I'm stuggling a bit to get my head round the balance sheet, a bit out of my comfort zone to be honest. But I will keep reviewing and try to come to a decision. Spreads a bit wide.

Shame I can't look at cbay using TDW research facility.

[boadicea] 04/8/2009 20:19

Another possible minus point - What are the chances of it delisting from AIM and re-arranging itself under the MEDQ umbrella? Could it be done? Would it save the company expense?
From previous experience, it might not realise best (much?) value for UK investors.

[boadicea] 04/8/2009 20:12

Always looking for a bargain but what puts me off this one is the impenetrability of the accounts - I'm just not accustomed to the obscure US style accounting. (They probably feel the same about the UK style.) I'll print off the RNS version from LSE and study that as it is normally a lot easier to read than the poorly formatted advfn version.

However, the cash flow looks positive enough (once I had unravelled its origins) and I might be tempted to dabble and get to understand it better in due course.

[nurdin] 04/8/2009 17:05

I have done my darnest to highlight the price anomaly here but to little avail unfortunately.But this descrepancy will not last forever imo..

A good thing is that since MedQ report ahead of CBay, we almost know what to expect from CBay results !

[237gmoney] 04/8/2009 16:52

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] 04/8/2009 16:02

We could be on our way :o)

[nurdin] 04/8/2009 13:51

I think there are some legal issues which prevent them from trading on CREST..which is more the pity.I was assured however that they are doing everything possible to improve the liquidity in the stock.