Allscripts (NASDAQ:MDRX)
The Company is a provider of clinical software, connectivity and information solutions that physicians use to improve the quality of healthcare.
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Due to new health care regulations, physicians need to be compliant with EMR standards by 2014 or face monetary penalties. Health systems need physicians to expand their networks so the two groups will help each-other. The health systems will provide the EMR infrastructure while the physicians will gain patients.
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2011 Forbes Special Edition
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Right now all boats are rising as hospitals rush to move towards Electronic Medical Records. Allscripts benefits from this industry wide momentum. However, within the industry they are a laggard. Please refer to the most recent KLAS report (KLAS is a VERY well respected Healthcare IT research company). http://www.klasresearch.com/News/PressRoom/2010/Top20
You will notice that a company called Epic earned the most top positions. The bad news is that Epic is private and always will be. The worse news is that there are 10 major players in the Healthcare IT industry. Last year Epic won roughly 50% of the sales, leaving 9 companies to divide up the remaining 50%.
As much as I want to invest in this industry, I can't rationalize it as long as Epic remains the private 800lb gorilla.
There is a small bright spot. Right now Epic does not work with medium or small hospitals (notice they only won the award for hospitals with 100 or more physicians).
Allscripts might grow in the next 2 years, however it will slowly crumble afterwards.
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Raymond James Picks 2011
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definite player in a relatively new game
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Earnings will be above 0.18 analyst consensus for 3rd qtr.
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must gain from digital medical record in next 5 years starting soon.
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Health care mandated changes for keeping med records electronically
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new PHR push
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6/8 pick...
6/9 blog...
http://blogs.forbes.com/sciencebiz/2010/06/allscripts-eclipsys-merger-electronic-health-records-land-grab.html?partner=msn
this is fun and all, but I'm getting more than a little frustrated
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This market has a lot of money on the table for them to compete for. They bought an ailing competitor at a steep price but they also bought their install base and a good shot a future add-on sales.
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Looks like a winner
Macro:
Good sales; Growing with the healthcare industry; benefits from stimulus money; plenty of doctor's offices that have not yet upgraded -room to grow recurring revenue.
Fundamentals:
Minimal debt
Earnings growing relatively fast and price has not yet caught up.
Stalwart earnings history.
No stock is perfect, here are some the cons:
Cashflow is tight and spread out
Much of their assets are either intangible, or in receivables
PE is kinda high, even for a tech company (although earnings growth is pushing this down)
19% short interest
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40 Billion Dollar stimulus for doctors with penality for not getting service. Lead of the pack, 30% market penitration for all suppliers with a push next year for 90 to 100%. this is insane.
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Love this stock since Obama took office a year ago and realized that the CEO of AllScripts and administration go back to the days of Obamas Chicago politics. I originally bought the stock at slightly under $10 per share and have increased my position in quarters so that with dollar-cost-avg. i am currently just under $13 on this stock and still making an ROI of better than 20% since my intial investment. i'm sticking with this one for awhile. I can see this stock rising up2 $40/50 per share easy during fiscal 2010.
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MDRX seems to be down a bit but I think it will eventually go higher. How does Emdeon compare? Would it be better to sell MDRX and buy Emdeon?
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The next few years are going to push medical practices towards technology. Many doctors are going to be resistant but this will still be a push into health care.
They have operating capital and increasing revenue so I think this one has a good shot to move upwards from here
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This stock is poised to capture the market in online medical billing. I just like it. Call me a Fool....
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I work at Duke Univ. Hospital providing IT services for Cardiology, Anesthesiology, and MRI - all of which are trying to store their data electronically and get away from storing records on paper; several parts of the hospital already use software from Allscripts and are very happy with it; Electronic records is where the future is.
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Makes health care better.
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Not only are hospitals and private practices going to switch over to EHR but Obama's new plan which will implemented within the next year will greatly push for EHR to be implemented.
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