After the downgrade by Stifel Nicolaus on March 4, the stock goes down to 41.60
Some incensed Big Boys phone Marty to complain bitterly and are being comforted.
They jump in again and the stock finishes the day at 43.98
Now, this might not be very regular and the SEC might frown on it, but that’s how things work on Wall Street.
I only hope the same Big Boys will act again now that the stock is slowly going down again on no volume and the rest of the world is only getting silence from a management that can explain things so nicely.
That is, if they feel like it.
I’ve sent this mail to Investors Relations, and receipt has been acknowledged:
“Given today’s downgrade by Stifel Nicolaus, and given management’s explanations at the recent conference call, I think it is reasonable to ask management for an update concerning the 6 to 7 key account meetings that were delayed by bad weather. In addition, as we are now 9 weeks into the New Year, has the no growth scenario for the first five weeks continued?
I think it is important for the image of the company that management issues a statement.”
“They believe investors remain skeptical of mgmt's. reasons for weak sales activity”
As it is a downgrade by the analyst, I would think it’s the analyst who remains skeptical.
Wouldn’t you think it is now up to the management to come out with a statement?
After all, their honesty and/or competence are being questioned.
We are at the end of the month. Lots of balance sheet adjustments, lots of movement that don't mean anything. We'll know more on Monday.
Boots and WebMD have been partners for the last 5 years:
“The BootsWebMD website brings you UK specific, GP reviewed health information. We provide credible information and in-depth reference material about health subjects that matter to you. We cover health issues for the general public in England, Scotland, Wales and Northern Ireland. We are a source of original and timely health information and also feature material from well-known content providers like the British Medical Journal and NHS Choices.”
Since 2012, Walgreens has been in the process of taking over AllianceBoots, a process that should be completed in 2015.
The combined company will have more than 11.300 stores worldwide.
Let me remind you of Schlager’s comments at the last Conference Call that clearly show the company’s way to substantial revenues in the future:
“To put Medscape's scale into perspective, on an annual basis, 625,000 registered U.S. physicians are active on Medscape, a substantial majority of the actively practicing physicians in the U.S. Additionally, we have approximately 1.2 million physicians active on Medscape from outside the U.S.
…we're continuing to invest in 2014 to position WebMD as the central place that consumers both manage all of their health information and relationships, share their data and communicate with their various health care providers.
Our goal is to establish WebMD as the place where consumers store, access and manage their health information in a trusted environment. To that end, in April, we expect to launch a new version of our flagship WebMD mobile app for iPhone that aggregates multiple sets of biometric data from devices such as glucometers, wireless scales and wearable devices, and wraps that data within a holistic health improvement program. Currently, there's a lot of interest around wearable devices in the quantified self movement. What's most important is using this data to change behavior and enable healthy outcomes, which is what our new offering is intended to do. For example, our new app will enable type 2 diabetics and those seeking to manage their weight to create and sustain new daily habits, better manage their condition and, ultimately, lead a healthier lifestyle. We'll do this by using device data to tailor content, provide personalized insights and to set and measure progress against goals.
With respect to connectivity, we are also building the foundation to connect our audiences of consumers and physicians. As we discussed during our last earnings call this past October, we acquired an innovative start-up technology called Avado to accelerate our connectivity efforts. We are making meaningful progress in integrating key aspect -- key aspects of Avado's technology into our platform. Its cloud-based, patient relationship management platform will serve as a key building block for a full suite of services connecting patients to their physicians and other health care providers.
As physicians take on financial risk and patients take on greater financial responsibility for their care, these tools will play an essential role in creating quality clinical outcomes that reduce cost. We expect to continue to increase our investments to realize these opportunities throughout 2014.
And most importantly, we are investing to leverage our market-leading brands and audiences, including Medscape's international reach, into diversified revenue streams and additional long-term growth opportunities.
So initially, Steve, the new version of our flagship app that we're launching in April will be to create a more personalized, engaging consumer experience to provide a whole level of capability that never really existed before, and it's really the beginning of WebMD becoming the place -- the central place where people manage all of their health care information, all their health relationships. So initially, again, it's very much about consumer engagement and creating new consumer behaviors. The relaunch of the WebMD flagship app is also an initial step, like Avado is, towards creating a whole notion of patient and physician connectivity, where the patients aren't just managing their health -- their personal health care data in a central place, but sharing it with their physicians in a more active way to manage health. And we see, long term, that, that opens up more transactionally-oriented revenue streams beyond -- in comparison to our traditional advertising model. And in certain circumstances, those transactional-type revenues will be paid for by consumers. In other cases, they'll be paid for by providers, but that's more of a longer-term opportunity for us.”
In other words: The Mobile Personal Health Record, stored at WBMD Cloud!
I absolutely agree with you.
This was an excellent conference and confirmed my opinion that with the ACA, the opportunities for WBMD have vastly improved.
The future is going to be exciting.
Don't you think it would be better if all companies stop giving guidances and leave the forecasting to the guys whose job it should be, the ANALYSTS?
And management won’t so either, that’s why their guidance is puny, as you say.
If, on the other hand, the results are coming in much higher than the puny forecast, then everybody is going to be happy again!
Yesterday’s services launch was for more than 5 million Blue Cross Blue Shields members.
A small step, considering this association provides services for “100 million members – one-in-three Americans”.
Tracey, It was before, figures are at the end of 2010.
In my calculations, I tried to be as conservative as WBMD is now,
Without that, the comparable price would be above $90
“If this change in sales activity were to continue, it would impact the rate of revenue growth in the latter half of this year. Although we do not believe this recent development is necessarily indicative of a continuing trend, it is considered in the range of initial revenue guidance we provided today."
In my opinion, this is just a ploy to provide an extremely conservative guidance for 2014.
And this is the genious who published that stuff:
I am currently a student at Johns Hopkins University majoring in Economics. I will also complete the requirements for the Entrepreneurship and Management, Financial Economics, and Applied Math Minors. I have aspirations to eventually go into a field of finance (capital markets, investment banking, venture capital), politics, and eventually non-profit organizations.
I started gaining interest in the stock market after reading a couple of books by Michael Lewis. "The Big Short," really opened my eyes to not only why our "Great Recession" occurred, but also to the lifestyle of those on Wall Street. Since then, I have followed the markets and begun to analyze stock options through Salant Investment team. On this team we review potential investments from multiple sectors by utilizing research reports, 10-K’s, and 10-Q’s of firms and utilize this research for stock pitching. We then build multiple valuation models for each potential investment including discounted cash flow models, comparative company analysis, and market multiples
If you have any questions or would like to get in touch with me, please e-mail email@example.com.
“Walgreens purchased a 45% stake in Alliance Boots, as the first step in a three-year merger plan. Walgreens paid $6.7 billion for the share, and will pay a further $9.5 billion to take full control of Alliance Boots and create the world's largest health and beauty retail group with over 11,000 stores worldwide.
The two companies established Walgreens Boots Alliance Development Company in late 2012 to further their integration. Both companies are due to be combined by 2015.”
I just think Stifel Nicolaus have a better understanding of the company and industry than some of the others – they have been following the company for a long time and are, I think, in frequent touch with management.
At this time it is very difficult to estimate the growth rate, as we have no idea how big the revenues can be from Obamacare and the big government contract. I just trust Marty Wygod to give a conservative guidance and then beat it every time he announces the real figures.
We might get some explanation at the next conference.