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This company not only comes with its compelling product offerings and its existing client base, but it also comes with a clean balance sheet. The company has no debt.
That debt-free balance sheet is growing significantly in the only line that counts: shareholder equity. From 4Q09 to 3Q10 this account grew to 118.8 million from 21.3 million, a gain of 457%.
I'm long on AH. The only downside to the company is that several large healthcare systems make up their entire customer base and competition is brisk. Also, many healthcare organizations are doing what AH offers internally. Right now, I'm playing the uptrend, but I'm honestly not sure about this stock in the long term. Note the company just released a large new stock offering with proceeds not going to the company but to a principal. I didn't like that much. Truth is, I may sell out and get into something else rather soon.
This isn't as overvalued as many recently public stocks are, but it still is richly priced.
That's why I won't enter an "Outperform" pick on it for the time being. I probably will eventually but not yet.
It's a bit mystifying that you think equity is the only line that counts, yet you are willing to pay $2.44B for a company with $119M in equity.