Just in case you missed it, the other day Lombard Odier of Geneva, Switzerland, filed with the SEC having bought shares of WBMD for $12.58 million during the last quarter.
Founded in 1796, Lombard Odier is one of the most respected and largest private bank in Switzerland
Have a look at the one-day chart. Just another little manipulation to take a block of 16000 shares off some tired hands at the lowest possible price.
In this crazy environment there will always be somebody who has to sell.
all this is really interesting except that martys stock is losing value and on 2 big updays went south on decent volume,one wonders if a combo institutional and retail selling is folks just saying screw it there are better places to go without trying to figure out all this financial engineering,which none of it did anybody any real good and no indication from the co as to whats really happening and having to wait for guidence that may not come for a while
if mkt and economic conditions really deteriate than the wait will get longer,than i think you think will happen,i try to forget this one but everytime i look at my stocks i see this sitting doing nothing,little and wonder what the best case upside iis the next 12-18 mos,i cant even come with a number.I would not totally count on positives,i think outside forces in the non wbmd world could really hurt cos that wbmd does business with,im not bearish on this but im less optimistic over the next year that the co will beat its modest projections and that could really drive the share price down and certainly keep it under 45
We are about to enter the worst month of the year for the stock market, September.
The Annual Shareholder Meeting scheduled for 10 / 01 / 15 will most likely obtain approval for the issuance of an additional 1.7 million shares for executive stock options.
Given that the weak market conditions are expected to continue into September, Marty has it working in his favor, as it should keep the WebMD stock depressed, allowing the issuance of Executive Stock Options sometime during the 4th qtr. at very favorable low prices.
I fully expect Marty to announce at the Shareholder Meeting that the 2015 forecast remains in tact.
He will not announce any stock moving news until the Board of Directors as approved the next wave of Executive Stock Options, assuming voting approval at the Annual Meeting on October 1st.
Once the options are issued, it may provide the first opening for WebMD to make some newsworthy announcements. However, we may still need to wait until next years 4th qtr. Conference Call in February before hearing anything noteworthy.
In the long run, what Marty is doing is in the best interests of the long term shareholders as he is spending our cash wisely. It does not serve the short term investor as there has been no appreciable upward movement in the stock for a couple of years. As you know, Wygod is not interested in the short term, but the end game. CHECKMATE!!
Regarding your comment about things starting now and therefore are not yet in the forecast etc. may in fact be correct, however, these contracts are well defined, and the revenue generation is clearly part of the contract, and therefore, is also clearly defined. It has more to do with Marty and his financial team not disclosing whether or not this Blue Cross deal is in the forecast, as if it is incremental to what the street expects, based on current guidance, it could move the stock higher and impact the value of the note that WebMD just repurchased at only 1% over its original par value. Trust me, every financial move Wygod makes is tightly orchestrated. If the stock were to trade meaningfully higher before the buy back of the 2.25% Convertible Note, then the buyback would also be considerably higher than the 1% over par.
Marty may be one of the shrewdest Financial Engineers we will ever encounter!!
WebMD just announced that they have bought back $143 million of the 2.25% note due on March 31, 2016.
It leaves a balance of $109 million of the total $252 million. This covers the request to approve the 1.7 million shares for Mgmt. stock options at the October 1, 2015 Annual Shareholder Meeting, as the partial payback of the 2.25% Convertible Note is comparable to buying back almost 2 million shares of the outstanding 3.5 million shares of said note. Therefore, approving the 1.7 million shares for insiders does not increase the total float currently reflected on the 2015 Income Statement. Pretty slick on Marty's part! ... It's all part of his financial engineering, while maintaining price stability as these moves are relatively neutral as it pertains to the financial statements.
Steve, These things are starting now and therefore are not yet in the forcast, as any estimate would be pure phantasy.
I think the time is ripe now for Marty to turn WBMD into what he always wanted it to be:
The Internet Company redlucing Health Care Costs by providing all Health Services to all Americans.
With WebMD Health Services' “turn key solution” for small companies, they could cover a good part of the population by providing all services, including prescription drugs and insurance, to all those companies that are too small to afford an independent infrastructure.
Hence the increase in office space and the new CEO for WebMD Health Services.
Another step in the same direction is the collaboration with Walgreens.
As a result, future revenues should come increasingly from those services, and advertising revenues will become what they should be: A secondary but welcome by-product.
We are still waiting for what the above means relative to revenue generation!
Is the above already incorporated in the 2015 forecast?
If it is, then it is not moving the needle, as WebMD has maintained its high end 2015 revenue forecast of $635 million, + 9% vs. 2014.
What is most frustrating, is the fact that 2014 top line Revenue grew by 13% and this year WebMD has forecasted only 9%. It is no wonder that the stock remains dead in the water. According to Wygod and his minions, the company's growth rate is slowing from 13% to 9%.
That is why the 50% increase in office space and the 100% increase in Cap Ex spending does not foot with the short term weak forecast. As I said previously, there is " MORE THAN MEETS THE EYE."
We are all waiting for the full disclosure of what may be coming next year!
Starting this fall
Blue Cross Blue Shield of Michigan and Blue Care Network members will have access to a new set of health and wellness programs. Through a partnership with WebMD Health Services, Blue Cross will offer a new online wellness platform – including a health assessment, digital health assistant and health information – along with other wellness programs to its group and individual members. The new partnership gives Michigan Blues' customers, including employer groups looking to keep costs down, the opportunity to incorporate wellness programs into their benefit structure. “The service is available to clients of all sizes, although it may prove most beneficial to small businesses that typically lack the administrative staff needed to manage a wellness program, said Aaron MacDonald, Blue Cross Blue Shield’s director of small group sales and external distribution.
MacDonald described WebMD Health Services, a unit of WebMD Health Corp., as a “turnkey solution” that’s readily adopted by employers.” According to the U.S. Census Bureau, Bureau of Labor Statistics, there are 27.9 million small businesses in the U.S.
Over 50% of the working population (120 million individuals) works in a small business
WBMD will move into new offices increased by 50%
WBMD has just hired a CEO for WebMD Health Services
Rather than focusing on the price of the stock, which is a guessing game, we must watch for fundamental expansion of revenue growth to the +15% level starting next year. As long as growth stays at current levels, we will not see any serious movement in stock price. Once Wygod announces the strategy for faster growth, we will see stock appreciation. When the stock hits its first conversion price of $52, we hopefully will see the elimination of $300 million in debt, combined with the payback of $252 million in note debt at the end of 1st qtr. 2016. Therefore, WebMD would go from $952 million in debt as of today, down to $400 million by April 1st 2016, with a cash position of roughly $600 million.
The above numbers change the entire dynamic of the Balance Sheet and Cash Flow Fundamentals!
EVERYTHING HINGES ON NEXT YEARS FORECASTED GROWTH RATE FOR TOPLINE REVENUE!
if i recall the all time high is about 60,barring something really crazy,i dont se a path to there for a cpl of years closer to 3,the issue is whether the co gets bought,there its unlikely a hostile takeover im guessing the buyout will be around 60 if it happens and based on the capital expenditures i suspect theres another year of us watching paint dry,the solace i take is that the mkt is and has been in a time correction the last 7 mos where we simply trade in a range.
If you are asking yourself why there is no movement in the price of WebMD's stock, all you need to do is look at the following facts: 1) Large Institutional Holding 2) Large Very Loyal Retail Holdings 3) Large Insider Holdings 4) Small Remaining Tradable Float 4) Absence of Meaningful Revenue News 5) Very High Convertible Note Debt on Balance Sheet 6) Strategically Timed Tender Offers 7) Conservative Single Digit Revenue Forecasts.
These factors are not by chance as Wygod is a Master at Financial Engineering. He is well aware of how the above allow him to legally influence when and by how much the WebMD stock will move. When the Company is ready, and only then, will he allow the floodgates to open. If you are not in the stock when "Big News" is released, you will miss the move, and it will be a meaningful advance.
Remember, I am talking about Marty Wygod. If he believed WebMD was not going anywhere, he would have sold the company!
It is possible that short sellers are driving the stock down, combined with little buyer interest and no buy back volume, it is no wonder the stock can not find its footing. It appears that we are in for a tough 4 to 5 months.
Fully agree with you with respect to the company and its prospects.
However, a reputable company should not allow its stock to be traded as it has been today, and should intervene with the crooks responsible for it.