The company has not generated a single dollar of cash in the last 12 months. There has been a huge increase in receivables, PP&E and working capital. This indicates that the company's accounting is very aggressive, and maybe even fraudulent. Their earnings guidance looks to be a pipe dream and an attempt to pump up the stock so that insiders can sell. This is a $15 stock at best even without these issues.
All anyone has to do is to look into how the reps are instructing their physician customers to bill the insurance companies for the test as well as how the company bills for their component that they perform. Seems to be an area that may be controversial and open to interpretation, especially in the eyes of who is paying for these services, the insurer's.
The clue resides in the differences in these billing practices between Medicare and all the private insurance companies, especially prior to 2009. Key is the CPT code that is being used with only the private insurance payors, a code that has been around for 20 years, certainly way before this technology was conceived. There is plenty of grey area to keep an eye on IMHO. Can this have an impact the status of the receivables?
As I have mentioned in previous posts, the new code that was established by CMS in Jan 2009 clearly removes the grey area and should be adapted by the private insurance companies as well and appropriately eliminate the practice of using the old Real time Holter code that has been around for 20 years. Clarification moving forward is inevitable.