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ACI Worldwide, Inc. Message Board

  • baam60 baam60 Mar 26, 2007 11:16 PM Flag

    Insider buying in MRGE according to BriefingTrader Merge Healthcare: Recent insider buying in this speculative turnaround candidate: We ran a screen for small cap names with recent insider buying. A name worth a look is Merge Technologies, which is in the midst of a turnaround. The co is a provider of medical imaging and clinical software principally for radiology departments. Last year was ugly for MRGE. This was a $27 stock just over a year ago, but has steadily fallen since then. A big part of their problem followed the acquisition of Cedara in Jun 2005. Integrating the two businesses did not go as well as expected. As a result, the co has brought in new management. The new CEO, Kenneth Rardin, was the founder and CEO of Imnet Systems, which became one of the fastest-growing healthcare IT cos in the US and was eventually sold to McKesson (MCK). Also, Steven Norton left his job as CFO of Manhattan Associates (MANH) to take the CFO job at Merge. So they must seem some potential... The new mgmt has been taking some action. In Q4 2006, the co announced a reorganization including slashing 28% of its workforce and consolidating its Merge eMed and Cedara Software units. Also, the co outsourced a significant portion of its software engineering and customer support to India... There are a lot issues to resolve, including an ongoing SEC inquiry, which makes MRGE a high risk/high reward idea. However, the new mgmt must see some potential here and they are putting their money where their mouth is. In the past 10 days, insiders have purchased the following: CEO 18K shares, CFO, VP and Directors combined bought 58,900 shares. The co believes the worst is behind them and expects the recent changes will begin to pay off over the next several quarters. Of note, the co believes it can become profitable again by Q4. Mkt cap $145 mln, avg vol 348K.

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