(ATHN)

764331 (< 20) Submitted: 10/14/07 10:24 PM : Start Price: $38.52 ATHN Score: -13.28

Company is poorly managed and has not had profits in 10 years. They underprice billing contracts and since most new business is referral based it is quite difficult to charge more to customers referred by existing customers who pay less. Internet based system is not new as they claim. ASP model is being used by virtually everyone now in the software solution Medical Billing business. They do have recurring revenue because typically contracts are for 2-5 years with auto renew, but because pricing is so low compared to national average profits will be marginal at best. Current price of stock $38.50 values AthenaHealth at $1.2 Billion even though they only have $75 Million in revenues and no profits (actually have losses).

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