(Cardionet -BEAT) beats Earnings estimate. $-.02 vs $-.09 est.
This company has done everything right, beating earnings yesterday, $50million cash on hand. volume growth 12% (though not the 30% volume estimate by the former laughable and incompetent CEO Randy Thurman) positive EBITDA achieved. How the Heck is this company trading at around $100million dollars market cap?
I agree that Crapper has been brought in to sell the company. I also agree that he gave a very strong signal that they were going to try and goose sales (which might cause next Q to be a bit softer with the expense build for sales...but will pay off after that!).
However, I think more than anything, they must get rid of the "poison pill" that the class action shareholder suit represents. There are many who would love to acquire the assets of this company, but do not want to acquire the company itself while this unknown black cloud hangs over its head. All of the hype about Thurman by his relatives on this board cannot cover the fact that he made a fatal mistake in how he communicated and managed through the entire analyst fiasco, leaving the company with more than just reimbursement issues to get over.
They should hire the top lawyers, involve their carrier and push this for resolution as rapidly as possible, rather than the normal course which would be to wait, wait and wait some more. If you look at the potential liability, it could far exceed the current price per share if they allow the lawsuit to manage them instead of understanding how serious this is. The stock dropped over $10/share during the period in question and that is the upside of a potential claim. If the company is "worth" $12-$14 without this lawsuit, then if they can settle it for $3 or $4/share they might net $8-$9 for current shareholders, and almost 100% from here is not chicken feed. However they MUST get on this now. I am amazed that no analyst asked about this on the CC. They fuss over adding 10 bodies and trying to "tweak" their worthless models for pennies, while an issue like this is as important to the future value to shareholders as the reimbursement issue might be.