CERN forward P/E = 29X
ATHN forward P/E = 55X
So around $46/share for ATHN would equal CERN. But wait, ATHN just lowered EPS for 2013 and admitted 2014 will also experience a drag from the near $300M Epocrates buy. WHY would anyone even pay a forward P/E of 29X for ATHN and today it is 55X.
I see disastrous fall coming and "Psychology of the Call" bloggers have been all over this stock after Jim Cramer compared it to CRM.. Do you watch Jim Cramer?
CERN short interest = 6%
ATHN short interest = 20%
Do you think the shorts don't know that a co that relies on Govt money aka Obamacare should never trade with hyper-growth metrics? I cannot believe this co traded near $100.00 and not 1 Wall Street analyst came on CNBC and told Jim Cramer he is full of baloney.
With Verizon (VZ) moving in aggressively the Q is when will we see ATHN gap down several times until it shows a fair valuation, which imo = $20/share.
It's even worse than you portray it. You are using the insane non GAAP earnings they use that do not count as expenses the stock they pay for compensation and anything they can characterize as non recurring expenses.
This company made TWO CENTS this quarter.
The revenue does go up. The profits do not keep pace. Next quarter there will be new non recurring expenses. And the quarter after that. And they will again not count stock compensation that shareholders pay for.
Now that they bought Epocrates which was in trouble and now that they are landlords and now that they are an incubator company they have complicated the story enough to hide and lie about all sorts of things.
RIGHT IN THE MIDDLE OF DOING THIS THEY UNLOADED ONE THIRD OF THEIR HOLDINGS. THEY ARE NOW DOWN TO ALMOST NOTHING. LESS THAN ONE DAYS VOLUME.
THEY ESSENTIALLY SOLD EVERYTHING THEY STARTED OUT WITH AND EVERY SHARE THEY GRANTED THEMSELVES AS THEY PROMOTED THE PRICE.
THE PRESS RELEASES GROW MORE FRIVOLOUS.
IF YOU MAKE MONEY YOU NEED NO PRESS RELEASES.
THE ONLY ESCAPE FOR THEM IS TO HAVE A HUGE COMPANY THAT IS DUMB DUMB DUMB BUY THEM. LIKE EXPERION.
BUT HALF ATHN ASSETS ARE GOODWILL AND INTANGIBLES.