Them buying back the whole lot doesn’t prevent him from disbursing this own shares.
In fact, I’ve the suspicion management sold their shares to incite others to do the same.
Perhaps this effort was more successful than they thought, so now they have this huge surplus.
If they are bold, and show they have some guts, they would take the whole lot, the shares would go through the roof, shareholders would be happy, and in the fullness of time they could increase the float by making a split.
But then, they would have to have some guts…
And what if Management decided to be bold and take all the shares offered?
After all, if they are really as optimistic about the future as they always state, they would replace those funds soon through increased earnings.
And if, for one reason or another, they all of a sudden needed additional funds, they could always issue new convertible notes.
Taking the share price before the earnings and the tender, and calculating according to the new numbers of shares, the price should now be slightly above $50.
Add to this the increase in earnings…
WebMD Health Corp. (NASDAQ:WBMD)‘s stock had its “positive” rating reissued by investment analysts at Stifel Nicolaus in a note issued to investors on Monday. They currently have a $60.00 target price on the stock. Stifel Nicolaus’ price objective would suggest a potential upside of 22.57% from the stock’s previous close.
WebMD Health Corp. provides health information services to consumers, physicians and other healthcare professionals, employers, and health plans through its public and private online portals, mobile platforms, and health-focused publications in the U.S. This stock closed up 3.6% at $49.26 in Monday's trading session.
Monday's Volume: 938,000
Three-Month Average Volume: 561,522
Volume % Change: 54%
From a technical perspective, WBMD ripped sharply higher here back above its 50-day moving average of $48.92 with above-average volume. This strong move through WBMD's 50-day on Monday is quickly pushing this stock within range of triggering a near-term breakout trade. That trade will hit if WBMD manages to take out some key near-term overhead resistance levels at $50 to $50.96 with high volume.
Traders should now look for long-biased trades in WBMD as long as it's trending above Monday's intraday low of $47.87 or above more near-term support at $46.77 and then once it sustains a move or close above those breakout levels with volume that's near or above 561,522 shares. If that breakout triggers soon, then WBMD will set up to re-test or possibly take out its next major overhead resistance levels at $52.27 to its 52-week high at $53.30. Any high-volume move above those levels will then give WBMD a chance to challenge $55 to $60.
…and of course one could say they did it as a service to us the people: The more shares the company can buy back, the more the remaining shareholders should benefit.
And management can always give themselves some new options…
They exercised stock options to sell shares in the open market, such depressing the price and inciting shaky shareholders to give up shares in the tender.
Manipulation, yes, but legal.
Hi tracey, I always appreciate your opinion. I am more optimistic than you, because I’m expecting an earnings explosion. Why else would they have the tender instead of continuing with the re-purchase? According to Schlanger, “the tender provides and opportunity to buy a more significant amount of shares at one point of time”. So they are in a hurry, because once they have signed up the new orders, the stock is not going to be that cheap.
NEW YORK ( TheStreet) -- WebMD Health (Nasdaq: WBMD) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
WBMD's revenue growth has slightly outpaced the industry average of 11.4%. Since the same quarter one year prior, revenues rose by 12.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
WEBMD HEALTH CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, WEBMD HEALTH CORP turned its bottom line around by earning $0.33 versus -$0.44 in the prior year. This year, the market expects an improvement in earnings ($0.86 versus $0.33).
The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 272.1% when compared to the same quarter one year prior, rising from $2.61 million to $9.72 million.
The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, WEBMD HEALTH CORP's return on equity exceeds that of both the industry average and the S&P 500.
Net operating cash flow has increased to $34.08 million or 48.48% when compared to the same quarter las
WebMD Health Corp. (NASDAQ:WBMD)‘s stock had its “strong-buy” rating reiterated by equities researchers at Raymond James in a research report issued on Wednesday. They currently have a $57.00 price objective on the stock, up from their previous price objective of $54.00. Raymond James’ price target would indicate a potential upside of 18.87% from the stock’s previous close.
Jellen made her comments already and Twitter’s earnings proved her wrong.
However, Investors will always find something to worry about…
SAN FRANCISCO, July 29, 2014 /PRNewswire/ -- Health 2.0 announces Bernard Tyson , CEO of Kaiser Permanente, as a keynote alongside visionary physicians Eric Topol , Patrick Soon-Shiong, and Samsung's President Young Sohn at the Health 2.0 8th Annual Fall Conference this coming Sept. 21-24 in Santa Clara, CA. This year, Health 2.0 is set to host the very first Wearable Tech Fashion Runway as a part of the larger session on Consumer Tech & Wearables: Powering Healthy Lifestyles. The panel will also showcase data utility layer platforms from tech giants such as Intel , Qualcomm, WebMD, and Walgreens, which are working with these trackers to provide a complete consumer health solution. Once again, Health 2.0 leads the industry with never before seen technologies, panels, and discussions based on industry classifications of patient-provider communication, consumer facing products, professional facing products, and data analytics.
Health 2.0 8th Annual Fall Conference highlights include:
Consumer Tech & Wearables: The newest addition to the Health 2.0 agenda is The Wearable Tech Fashion Runway, which features a multitude of wearable health tech in addition to data utility layer platforms from giants such as Samsung , Intel , Qualcomm, WebMD and Walgreens.
Your statement concerning a short squeeze is not supported by facts:
From July 15, 2013, the earliest short position I could get, that position increased from
2,563,302 shares to the recent number of 7,280,003
During the same period the share price increased from $32.21 to today’s number.
The short squeeze is still ahead of us.
To compare WBMD to a little copy like EVDY, an outfit that still has to make a profit, is just too silly for words.