Constellation Healthcare Share Discussion Threads

[pj 1] 12/9/2016 14:50

Back in for a few.

[rivaldo] 12/9/2016 14:48

Yep, looks like the dam has burst - a bit of institutional buying too given the two larger "OK" denoted Buy trades.

The latest buy was at the full 157p offer, so it seems that hopefully the overhang has well and truly been cleared.

[battlebus2] 12/9/2016 14:33

We are moving higher :))

[rivaldo] 12/9/2016 12:20

I've updated the thread header post for the latest increased forecasts:

- this year (2016): 16.65p EPS (increased from 15.22p EPS)
- next year (2017): 18.84p EPS (increased from 17.18p EPS)

[rivaldo] 07/9/2016 08:19

Good to see a 4k buy this morning at (just!) above the mid-price at 150.06p. Perhaps the tide is turning :o))

[rivaldo] 06/9/2016 23:12

It is indeed bb2, cheers.

TDay, you just have to phone them up to deal - it's easy.

[battlebus2] 06/9/2016 20:56

Really good news on Gervais Williams Rivaldo, thanks.

[tday] 06/9/2016 20:45

Can't buy online through Barclays Stockbrokers.

[deltrotter] 06/9/2016 09:07

Gee guys, I can't see past this:

"free cash flow has moved from a $4m outflow to an $11m inflow"

So, what will it be for the next 12 months??

[rivaldo] 06/9/2016 08:58

It seems the legendary Gervais Williams is a fan of CHT.

He runs the Miton UK Microcap Trust - and CHT is the seventh largest holding in the Trust.

At 2.1% of NAV their holding must be worth almost £2m....

Http: //www.proactiveinvestors.co.uk/companies/news/148089/small-cap-guru-s-top-ten-stocks-revealed-148089.html?utm_source=Sign-Up.to&utm_medium=email&utm_campaign=7163-356569-proactivity+-+05%2F09%2F2016

[rivaldo] 05/9/2016 08:46

Cheers Mr Benn, appreciated. With the forecast now increased to around 17p EPS this year, plus a $10m+ cash pile, I'd hope CHT will gain further momentum over the coming weeks.

[mr_benn] 05/9/2016 08:14

IC ViewThe shares climbed 5 per cent on the back of these results but, having been treading water for the past few months, are trading on just nine times forward earnings. This fails to price in the potential growth on offer across the US healthcare market, as well as future contributions from recent acquisitions. Buy.

[mr_benn] 05/9/2016 08:13

IC Article:Healthcare provision in the US is incredibly complex, made even more so by its continued evolution to cater for the ageing demographic, new insurance models and increasing healthcare needs. Medical services provider Constellation Healthcare (CHT) "is well placed to take advantage of this new paradigm", according to chief executive Paul Parmar. The group has spent the past few years bulking up its operations through acquisitions and is now starting to reap the rewards.That acquisition strategy has been complemented by organic growth, which peaked at 22 per cent sales-wise during the first half of the financial year. Constellation continues to increase the number of doctors using its medical billing platform and won 15 new clients in the period. Cost cutting, particularly in the medical billing division, helped to inflate adjusted operating profit margins, boosting total operating profit by 92 per cent to $57m (£43m).Investments in the comparable period last year stunted free cash flow, despite the cash-generative nature of the business model. But with those investments now yielding benefits, free cash flow has moved from a $4m outflow to an $11m inflow. Thus, Constellation has paid off some of its debt and moved into a net cash position as a result.Broker FinnCap has upgraded 2016 full-year forecasts and now expects adjusted pre-tax profits of $31.6m and adjusted EPS of 22.1? (from $20m and 20.4? in FY2015).

[rivaldo] 05/9/2016 07:44

Looks like CHT have been tipped in the IC - anyone got the full article?:



"Constellation shines thanks to US healthcare complexities

Healthcare provision in the US is incredibly complex, made even more so by its continued evolution to cater for the ageing demographic, new insurance models and increasing healthcare needs. Medical services provider Constellation Healthcare (CHT) "is well placed to take advantage of this new paradigm", according to chief executive Paul Parmar. The group has spent the past few years bulking up its operations through acquisitions and is now starting to reap the rewards."

Nice mention in the Mail too:



"There were several updates from the healthcare sector yesterday, among them AIM-listed Constellation Healthcare Technologies.

The firm provides outsourced services to doctors in the US such as practice management and billing and collection services. Constellation said pre-tax profit in the first half of the year was £11.6million, more than triple the £3.2million in the same period a year ago.

It is now servicing more than 10,000 physicians in the US. Shares advanced 5.3 per cent, or 7.5p, to 148p."

[loobrush] 02/9/2016 12:25

Maybe it will get some interest here when the US opens ,must be some followers over the pond ?

[santangello] 02/9/2016 12:12

Thanks Rivaldo.

[rivaldo] 02/9/2016 12:07

Stifel are joint brokers to CHT. They last had a 271p target price, but I haven't seen anything from them since this in October last year - anyone got anything more recent from them?

http ://www.proactiveinvestors.co.uk/companies/news/116101/constellation-healthcare-s-rating-too-modest-says-stifel-116101.html

"Broker Stifel has initiated coverage of Constellation Healthcare Technologies (LON:CHT) with a ‘buy’ rating and 271p a share price target.

The stock would have to advance around 70% from today’s levels to match that valuation.

Constellation describes itself as an RCM, or a revenue cycle management company.

Essentially, what it does for the nearly 6,000 doctors on its books is bill and collect monies owed by government, insurers and patients.

It also provides practice management and purchasing services.

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 to consolidate a highly fragmented market.

Last month it made two acquisitions in a month at a total cost of US$32mln.

Meanwhile in March it completed its biggest deal to date with the purchase of New York-based Physicians Practice Plus for US$20mln.

Stifel’s Ken Rumph estimates that, including the contribution of the new businesses, Constellation trading on a very modest enterprise multiple of just 4.5 times and a price to earnings multiple of 10 times.

“Constellation is rolling up a large, growing, sticky and fragmented market for revenue cycle (billing) management in the USA,” said Stifel analyst Rumph. "

[deltrotter] 02/9/2016 10:47

Yup that cash flow is a helluva turnaround!

I'd love to see them reinstate the dividend. I have no doubt they will at some point....

[rivaldo] 02/9/2016 10:44

Cheers Flagon, that's good news re the forecast increase. This year's forecast must now be around 15.5p EPS.

In particular as well:

"Free cash flow improved from a US$4mln outflow to US$11mln inflow. The group reported net cash of US$9mln. Cash from operations increased 160% to US$10.9mln."

"“First half results evidence the model and strategy are generating significant value,” said analysts at finnCap.

The broker upgraded its earnings per share estimate by 2% and reiterated the target price of 310p, around a 118% upside, citing a strong cash balance and “strong prospects”".

CHT is just too cheap, especially with a $10m and rising cash pile.

[battlebus2] 02/9/2016 10:17

Saucepan we all share your distrust of foreign co's listed on AIM so personally speaking I keep them at a small percentage of the portfolio. Risk/Reward potential.

[loobrush] 02/9/2016 10:15

Results look excellent to me,so after reading up I have bought some as if they keep going at this rate they will be a very rich company in a couple of years and they seem to be the only ones in this space.

[adamb1978] 02/9/2016 10:14

Does anyone know what format their email addresses take? I wanted to email the CFO about something...will need to guess which first name he's going by so don't want to increase the permutations further! THanks

[santangello] 02/9/2016 10:13

Powerful numbers.

310p is a strong target.

I have added further this a.m

[deltrotter] 02/9/2016 10:05

Tx Flagon.