Why is MDRX at 17+ with no real outlook on revenue, when clients and US employees are leaving in hordes. Isn't the market crazy? I smell a scam. Not long when it will all bust I suppose.
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If you want an explanation of why the stock market is so high, then watch this video created by Robert Reich entitled "1% Owns Half of All the Stock."
https://www.youtube.com/watch?v=VElPVcAMYZg
There is no rhyme or reason. The whole market is at a all time high and stock buybacks from company make people think demand is great. Plus recent sales of company at 1.3 billion.
Enron was super high at one point the poof! Gone. Same jokers are running Allscripts now as when it was super low. Think on that...
Correct welksky is a shell company owned by 2 equity companies who do nothing in healthcare. Ceo of she'll company is brad miller... Former vp of cerner under paul black reign .... Same with the netsmart deal several years back...former cerner execs
Wasn't CP and EPSI purchased by a equity or VC firm? So brokers recycling money into a dead product lines...to drive shares iof a company they purchased at much lower price up...to make a profit..although Allscripts as a whole sees no long true value in the purchase. ?
Stock buybacks
CarePort and EPSI sales generated $1.72 billion in 4th quarter cash. Add that to the $200 million in cash at end of Q3, subtract out the $1 billion in debt and there is still plenty there to support a $2.6 billion market cap.
The stock is only purchased by private equity firms or given away to internal stake holders. The general public purchase hold less then 1 percent.of 1 percent . Unlike apple or other companies having large public favorable sentiment. So inorder to get their value back these companies need to make Allscripts breath. Breath in...stock goes up...exhale stock drops. It has nothing to do with success. Enron and Theranos should come to mind.
It's Wall Street, and chasing the next quarter. Long term prognosis is poor, but in the meantime, they've cut costs. Therefore exceeding expectations. Woohoo, time to party! "...wait waddya mean when you ask about what we're doing for next year and growth?"