QuadraMed Corp (QDHC)

muzzybelly (< 20) Submitted: 5/23/07 3:46 AM : Start Price: $16.00 QDHC Score: -15.55

Preferred stock is not a great concern. The common stock can be diluted only by 42%, not the 90% previously mentioned, and more importantly that dilution is already factored into the financial statements. P/E ratio, for instance, assumes full dilution. Preferred stock financing also gives many benefits, including the absence of debt.





Otherwise, company has very strong fundamentals, and an outstanding cash flow ratio of about 30m annually (using current run rate) against a $140m EV.





EV-Ebitda ratio significantly understates the company's performance because it has so much deferred revenue is deferred -- which exposes shareholders to significant operational risk but also carries potential for dramatic revenue growth.

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