ATHENAHEALTH, INC. (ATHN)
The Company is a provider of internet-based business services for physician practices.
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Overestimated Earnings Growth
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2/27 in Health Care Technology -(73.0 @ A+/A+)
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EMR's are pretty much in-the-money for the next 5 years.
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Beaten down but is in line for growth and even a buyout when financing returns.
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Company is riding the trends of getting electronic medical records, and is doing it with cloud computing. Rated A+ by IBD. Technically it is above the the 50 and 200 day moving averages, and has pulled back to support at to the 50 day MA.
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Lt cost savings > short term investment in this tech.
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Top growth stock in Software as a Service (SAAS) category and could be top health care growth stock for the next 5 years.
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Obama, Healthcare Information Systems, Only Web-based Platform
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2009 is the year for health IT.
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Doctors are signing on to ATHN at record rate. They are desperate for web service to expedite billing for serivices to eliminate paper work for insurance services. CEO interviewed on Fast Money tonight. Looks very promising vis. old stodgy healthcare companies like ABBOTT, and others rated Strong Buy by S&P and other poor evaluating companies.
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Positioned well to take advantage of the trend towards web based sevices. Typical vendors that sell their software are going to have a harder and harder time competing against companies like this one that don't require installation of software, maintainence of servers, etc.
Also love their revenue-based business model. They only get paid based on a percentage of what doctors bring in. Doctors love it because it clearly aligns their goals in terms of medical billing.
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athenamedical provides critical services in medical accounting and record keeping. They've carved out a niche in a field which is both confused and almost illiterate. ATHN has looked at it from both the provider's and the payer's end of the transactions and seems to be making inroads.
When emphasis on efficiency of medical processes is increased, the electronic medical records and medical accounting are going to be very rewarding for the real leaders. (Google won't eat their lunch, because Google seems to be focusing on medical records rather than financial transactions.
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Concern on short's position, but the concept is appealing. B/S ok. Mgmt: so-so.
Added to my Obama-portfoliio a week ago or so.
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everyone needs to pay.even the doctors.
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Health care efficiency is only going to become more of a national focus over the next decade.
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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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Recent IPO with great potential, lokking for 40 within 6 mos.
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Freshest and smartest company in this particular sandbox. This company has the technology and business model to take the physician revenue cycle space by storm. All the big players in this HUGE market are loosing share except ATHN. Their new EMR product is gaining steam and is integrated with their revenue cylce product. They'll not only outperform, they're going to put the dinosaur "software" and traditional "outsourced billing" vendors (YAWN) out of business.

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