greetings john.... wonder if you could review and see if there is any hope on these guys...or if we just do a middle of the night 'p' on them... http://tinyurl.com/yozc3z cash covers debt and then some... rev's ok after sale of units... book per yahoo 7.22 ...stock @ 4.98
I know I won't be able the understand medical companies. But, I took a peep on Medtronics's profile and noticed that the CEO gets no pay. Excellent sign! I then went over the usual spaces--three year summary of Income, Cash Flow and Balance Sheets. The company is in transition. It sold some mfg assets and more maybe sold. So I know it'll be lots of work to disect the various parts. But, first, the one number that stood out and requires exploration is the huge minority interest that ate into and sometimes ate up operating profit. As it turns out--I don't have confirmation yet--minority interest expense maitained a close relation to urology services revenue. Aha! It must be the payment made to the doctors, etc. that utilizes its services and it bills directly to paying parties. Now, that's out of way, I can proceed...but I am out of time, nor do I think I can solve the whole puzzle. I'll leave it here but I;ll let you know if I come up with anything.
There are so many smart money mgr in this issue, yet the share price keep on drifting lower...
I only spent about 20 minutes this PM, the numbers pretty much told me to give up.
The revenue fell off the cliff since two years ago, suggesting that the service got a lot less popular. If there were no improved services, the sales may continue to shrink.
I'd like to think that minority interest needs to be stripped off revenue. In this way, I'd figure that the company had $10 million operating income in 2004, and suffered $28 million and $22 million operating loss the bext two years.
Equity on the book is about 90% water. The $229 million goodwill failed to deliver real operating profit, therefore is worth nothing JMO.
The tangible book value was only $20 million at year end 2006. At this rate, the company would be out of money soon. It reduced director pay last year, suggesting that the situation was grave.