That might have been a mistake on your part. I have enjoyed 1 split by CERN and am waiting for the next one when we get up to the $90 dollar range. Will load up again at the split price. Best investment in my portfolio.
On the surface it would appear to be a significant loss to lose a brand name like Mayo. What many fail to recognize is that Cerner, unlike Epic, is moving from being a technology supplier to the healthcare industry to being a healthcare technology solution provider. That is a fundamental shift that is addressing a significant labor void and cost in the marketplace. Epic's win ratio of beauty contests has been cut in half in the last 2-3 years, but it has lost every contest when cost, sustainability, and vision has been the leading decision factor.
I'm not worried about Cerner, in fact this stock is poised to double again in the next 5 years. Where will Epic be when Judy retires? After all, she's over 70 and she must want to do something other than make hospital CEO's feel important for 6-12 months during a sales cycle with what ever time she has left!
It was the way they lost Cerner that has implications. Cerner already had a relationship with Mayo and they let it get away. To insiders in the health technology community this was major.
Over 9 months ago, Fuzzy Mathematician made one of his many old, tired, negative predictions for Cerner stock, saying, "It's not going any higher." When he said it in the past, years, he was wrong, so I challenged him and we entered into a wager on the relative performance of CERN and the Dow Industrial Average from April 30, 2014 to April 30, 2015. We are 3/4 of the way through our 12 month period (picked non-arbitrarily; quarterly reports are ubiquitous), so let us see where we stand as of January 31st, 2015.
DOW 30 Industrials: UP 3.52%
CERN: UP 29.38%%
Difference: CERN is up 25.85% over the DOW for the 9 months since April 30th.
Of course, it's not over until the fat lady sings, but this quarter has only continue to build on the steady trend of Cerner outpacing the Dow. In my analysis of fuzzymathematician's predictions of the past many years, he has continually been negative on Cerner, and continually been WRONG. Using his sentiment on CERN's future performance as a contrarian play would have reaped great returns over the past several years.
He has continued to be noticeably quiet the past few months and we have not been subject to his erroneous pontifications. Perhaps that is just another benefit of making this bet.
Don't think you'll be disappointed. Just a snapshot here of their recent split history. We're on our way back up from the 2013 split. CERN has been good to me as well as a lot of people
Fifth June 27, 2011 2 for 1 June 24 - $116.04/June 27 - $58.98
Sixth July 1, 2013 2 for 1 June 28 - $96.09/July 1 - $48.75
The LOSS of MAYO Clinic will take about 2- 3 years!!! In the meantime, CERNER is growing faster than a lot of its competitors!!!
I work in a hospital and part of a large health care system using EPIC. Pretty much hate it. Ironically, the lab still uses Cerner. Been an investor for a while and can't complain a bit. Waiting for the next split at 80-90. DOD contract will take us there.
How can the loss of Mayo not hurt? Especially when part of the clinic already uses Cerner.