Over 20 million in cash, yet ZERO LT debt. Stock is at apx .90 cents right now. 4 years ago, this stock was at 4-5/share. The company has been around since early 1900s. Yes, new management has come in and out the past few years, which obviously makes this stock very risky. I think the best case scenario for this stock is that another health-insurance company acquires them (HH is in a perfect situation for this to happen with NO debt). Opinions?
To remove first post, remove entire topic.
Over 20 million in cash, yet ZERO LT debt. Stock is at apx .90 cents right now. 4 years ago, this stock was at 4-5/share. The company has been around since early 1900s. Yes, new management has come in and out the past few years, which obviously makes this stock very risky. I think the best case scenario for this stock is that another health-insurance company acquires them (HH is in a perfect situation for this to happen with NO debt). Opinions?
dont know much about stocks but looking to get more involved. i plan on following this stock for awhile. any advice you have is welcomed
I am a beginner investor, but my knowledge of accounting tells me that a company with zero long term debt, no pending liabilities, and heaps of cash is sitting in great shape.
Quote Originally Posted by CovasBrotha:
dont know much about stocks but looking to get more involved. i plan on following this stock for awhile. any advice you have is welcomed
I am a beginner investor, but my knowledge of accounting tells me that a company with zero long term debt, no pending liabilities, and heaps of cash is sitting in great shape.
ya, i just did a quick and I mean quick review of the company and it looks like they do underwriting (collect information of groups of people and sell it to companies). I think this type of business will be the first to go with the companies like Google being able to collect almost as much information just from you search. When a business is looking to trim margins and increase profit they look for things that can be done in house or cheaper 3rd parties. I didnt look too much into this so dont put too much weight into what I say just think about it. I currently hold Appl,Cat and have tangible silver. I have thought about buying RHT but am waiting.
ya, i just did a quick and I mean quick review of the company and it looks like they do underwriting (collect information of groups of people and sell it to companies). I think this type of business will be the first to go with the companies like Google being able to collect almost as much information just from you search. When a business is looking to trim margins and increase profit they look for things that can be done in house or cheaper 3rd parties. I didnt look too much into this so dont put too much weight into what I say just think about it. I currently hold Appl,Cat and have tangible silver. I have thought about buying RHT but am waiting.
Check out their profit margins, less than 2% profit margins.
Yeah they have no LT debt, but their margins stink and are selling at 11 times cash flow at a 30 PE and 1.4 times alleged book.
Now check this
Notice revenues have dropped 20 percent in two years, they only are profitable due to a drop in SG&A expenses.
Sell me on where their revenue growth will come from and how they can increase margins?
Forget about cash in the bank or price to sales ratios, neither mean much if you are working to make 2 cents on every dollar of revenue.
Last thing, insiders and funds are net sellers down here, why would management not be buying at under a dollar if there was such great value?
link
wallstreet, you obviously bring up some very valid points, but I still believe this company is in a good financial position moving forward. They have stopped their declining revenues and are finally stabilizing. It has been because of management constantly changing. Their is finally some stability in the organization.
As for why management hasn't bought in, they already have a decent amount of stock purchased. I'm assuming they don't want to put all of their money into one pool. But who knows. It had a good day today getting bought up at the end of the day to .95. I honestly think this is the week it breaks 1.00. I know its bullshit, but its yahoo estimate is 6.50 in 1 yr. It's only based off 1 analyst, but still. Better than the analyst shitting all over it
Quote Originally Posted by wallstreetcappers:
here
Check out their profit margins, less than 2% profit margins.
Yeah they have no LT debt, but their margins stink and are selling at 11 times cash flow at a 30 PE and 1.4 times alleged book.
Now check this
Notice revenues have dropped 20 percent in two years, they only are profitable due to a drop in SG&A expenses.
Sell me on where their revenue growth will come from and how they can increase margins?
Forget about cash in the bank or price to sales ratios, neither mean much if you are working to make 2 cents on every dollar of revenue.
Last thing, insiders and funds are net sellers down here, why would management not be buying at under a dollar if there was such great value?
link
wallstreet, you obviously bring up some very valid points, but I still believe this company is in a good financial position moving forward. They have stopped their declining revenues and are finally stabilizing. It has been because of management constantly changing. Their is finally some stability in the organization.
As for why management hasn't bought in, they already have a decent amount of stock purchased. I'm assuming they don't want to put all of their money into one pool. But who knows. It had a good day today getting bought up at the end of the day to .95. I honestly think this is the week it breaks 1.00. I know its bullshit, but its yahoo estimate is 6.50 in 1 yr. It's only based off 1 analyst, but still. Better than the analyst shitting all over it