Tue, Nov 25, 2014, 9:08 PM EST - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

Auxilio Inc. Message Board

jeffbas 6 posts  |  Last Activity: Nov 15, 2014 10:56 AM Member since: Dec 14, 1997
SortNewest  |  Oldest  |  Highest Rated Expand all messages
  • Reply to

    Solid results for Q3 out

    by jeffbas Nov 14, 2014 9:24 AM
    jeffbas jeffbas Nov 15, 2014 10:56 AM Flag

    (split into 2 parts since Yahoo "ate" one longer response last night)

    Warren Buffett has said that when you buy a stock you should think of whether or not you would want to own the whole company, something short term investors do not consider. At 95 cents, I definitely would. The company could report 4 cents per quarter now if it did little but service its long term contracts. A couple of calls ago, they said they expected to eventually double the size of the company. Because of leverage, this would be double the EPS per quarter, even with more shares then outstanding. Anyone selling at 95 cents now will then be very sorry (and the security business now offers the possibility of better margins and a higher multiple).

    Sentiment: Buy

  • Reply to

    Solid results for Q3 out

    by jeffbas Nov 14, 2014 9:24 AM
    jeffbas jeffbas Nov 15, 2014 10:30 AM Flag

    1. Reduction in paper volume was estimated to cut revenue, not margins, 1-2% per year or so. Because of "success" for the customer, this often helps penetrate more hospitals in a chain. Serving only 120 hospitals now in a market of 6,700, this does not seem that relevant.
    2. Spending money for growth means things like a couple of extra sales people plus investing money in receivables. For example, $10M more revenue means about $1.3M of cash "invested" in receivables, no big deal when they will have about $5M in cash at the end of 2014.
    3. A negative impact on overall gross margins from new business occurs because the new business initially has a very low gross margin, not a negative one, as discussed on a past call. The second caller brought out the point that since G&A is now relatively fixed new business leverages that fact - any additional gross margin from new business tends to fall directly to the bottom line, so the second $40M of revenue will add more to the bottom line than the first $40M.

    Sentiment: Buy

  • Reply to

    Solid results for Q3 out

    by jeffbas Nov 14, 2014 9:24 AM
    jeffbas jeffbas Nov 14, 2014 4:11 PM Flag

    Someone with no patience appears to have had a block to sell at 95 cents, perhaps to offset gains elsewhere - always a hazard at this time of year. The conference call was good. In particular, they had non-recurring professional fee expense for the Delphiis acquisition in Q3 of $100K; equipment sales will be good in Q4; and they seem excited about the new business prospects for both the core business and the security business.

    Sentiment: Buy

  • Very good results just reported. Despite continuing lower equipment sales, operating income is nearly back to the strong levels of a year ago, with a good outlook. Results included non-recurring professional expenses related to acquiring the Delphiis business, so really are even better on an ongoing basis. I particularly like hearing that they "are in the final stages of negotiating MPS agreements that, if secured, will expand the number of hospitals we serve nationally, provide incremental recurring revenue and further elevate our position as a Tier 1 healthcare service provider". Once 4-5 cent per share quarters can reasonably be projected, the stock should head toward $2+.

    Sentiment: Buy

  • Reply to

    173K Block Trade at $.95

    by jeffbas Oct 17, 2014 7:08 PM
    jeffbas jeffbas Oct 23, 2014 2:29 PM Flag

    There has been no further selling in a week and the bids are firming up. In the general market, the Russell 2000 underperformed all year, but bottomed just before the S&P last week and has outperformed since. Auxilio at the low dropped 45% from its high, because of weak earnings in the first two quarters, versus two 4 cent per share quarters at the end of last year, and weak microcap stock performance generally. Earnings have been forecast to improve. If they can deliver, that combined with the better market for microcap stocks should allow the stock to recover to above the $1.20 that was support for some time.

    Sentiment: Buy

  • Highest volume day in over a year. Perhaps a large seller has been responsible for recent weakness and this was the final clean up of his holding. Obviously, the buyer of the block liked a price of 95 cents; and so do I, having bought some at 96 cents earlier in the week.

    Sentiment: Buy

AUXO
0.90+0.02(+2.27%)Nov 25 3:57 PMEST

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.