Clusterstock  Mar 13  Comment 
February U.S. retail sales data are out. Total sales rose 0.3% from the previous month in February, above expectations for a 0.2% advance. January retail sales growth was revised down to -0.6% from -0.4%. Excluding autos, sales were up 0.3%,...
Clusterstock  Mar 7  Comment 
The February jobs report is out. The U.S. Bureau of Labor Statistics says 175,000 workers were added to nonfarm payrolls in February, well above Wall Street's consensus estimate of 149,000. 162,000 of those hires were to private payrolls,...
TheStreet.com  Feb 27  Comment 
NEW YORK (TheStreet) -- BioTelemetry  was rising 14.52% to $11.28 on Thursday after the company reported fourth-quarter results that surpassed analysts' expectations. BioTelemetry, which provides products and services to healthcare...
StreetInsider.com  Feb 26  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/BioTelemetry+%28BEAT%29+Tops+Q3+EPS+by+4c/9220679.html for the full story.
TheStreet.com  Feb 3  Comment 
NEW YORK (TheStreet) -- BioTelemetry  was soaring 27.16% to $9.27 on Monday after the wireless medical technology company announced it had won a patent infringement case against Mednet Healthcare Technologies.  Mednet entered into a consent...
StreetInsider.com  Feb 3  Comment 
BioTelemetry, Inc. (Nasdaq: BEAT) 26.6% HIGHER; announced a significant victory in the patent infringement case against Mednet Healthcare Technologies, Inc. and its subsidiaries, Heart-Care Corporation of America, Universal Medical Inc., and...
StreetInsider.com  Feb 3  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/BioTelemetry+%28BEAT%29+Ramps+on+Patent+Infringement+Victory%2C+Acquisition+of+Mednet/9116114.html for the full story.
Clusterstock  Jan 2  Comment 
Weekly jobless claims fell to 339,000. Expectations were for 344,000 versus a revised 341,000 prior. The four-week moving averaged ticked slightly higher. Full release » Pantheon Macro's Ian Shepherdson says seasonal distortions continue...
Clusterstock  Dec 4  Comment 
The November ADP national employment report, an important preview of Friday's jobs report, is out. Private companies added 215,000 new jobs in during the month, which was much stronger than the 170,000 expected by economists.  Furthermore,...
Clusterstock  Dec 2  Comment 
The U.S. manufacturing purchasing manager's index climbed to 54.7, up from 51.8 in October and beat analysts expectations for an unchanged reading.  It was the strongest improvement since January, although the three-month average remined...


CardioNet (NASDAQ:BEAT) is currently trading about 50% below its 50-day moving average at $6.27/share on 7/27/09 with value parameters that include a price/book ratio (PBR) of 0.95X, price/sales ratio (PSR) of 1.1X, and a trailing price/earnings (P/E) ratio of 19.5X with a market cap of about $150 million that includes over $50 million in cash and negligible debt. In mid-July, shares of BEAT tanked after the Company withdrew its 2009 financial outlook following a major cut in the reimbursement rate by Pennsylvania Medicare carrier Highmark for the Company's mobile cardiac outpatient telemetry (MCOT) services. As of 9/1/09, Highmark's reimbursement rate for MCOT services will decrease to $754, compared to the previous rate of $1,123 per service.

CardioNet's MCOT is an ambulatory cardiac monitoring service that analyzes patients' heartbeats on a real-time basis and includes automatic arrhythmia detection and wireless ECG transmission. The technology benefits both patients and physicians by providing 24/7 monitoring throughout the year on a remote basis to aid in the correct diagnosis and treatment of arrhythmias that may otherwise not be detected through Holter monitors or other instruments.

Predictably, BEAT received a wave of downgrades from analysts given the uncertainties surrounding the Company's profitability and the prospect of reimbursement cuts from other third-party payers. Despite these uncertainties, BEAT trades at an enterprise value of about 100 million and a significant discount to other companies in the Health IT industry in terms of PBR and PSR with many of the companies trading at ratios above 3X for these parameters.

My Global Health IT Index tracks the performance of 65 companies which derive the majority of their revenue from the following activities: (1) the electronic transmission, storage, and processing of prescriptions (e-prescribing); (2) electronic storage and systems for healthcare facility operations and medical records; and (3) electronic systems, devices, and services for remote, real-time monitoring of patient health parameters (telemedicine).

Despite uncertainties over the prospects for major healthcare reform, increased spending on Health IT is widely recognized as an important feature to modernize medical records, measure healthcare outcomes, and improve/extend the reach of modern healthcare technology through remote patient monitoring and other related technologies.

The Health IT index has easily outpaced the overall market on a year-to-date basis (YTD), including some top YTD stock price gainers from the index such as Allscripts-Misys (NASDAQ:MDRX) (+61%) (PBR = 3.4, PSR = 4.3), Eclipsys (NASDAQ:ECLP) (+27%) (PBR = 2.5, PSR = 1.9), Cerner (NASDAQ:CERN) (+68%) (PBR = 3.9, PSR = 3.2), Computer Programs & Systems (NASDAQ:CPSI) (+38%) (PBR = 9.5, PSR = 3.3), Quality Systems (NASDAQ:QSII) (+27%) (PBR = 10, PSR = 6.4), and Merge Healthcare (NASDAQ:MRGE) (+191%) (PBR = 17, PSR = 3.6).

Despite the uncertainties surrounding the reimbursement cuts for the Company's MCOT service and its murky financial outlook for 2009, I own shares of BEAT due to its strong balance sheet, extremely oversold stock price, the long-term potential for either a return to earnings growth or an acquisition by a larger player in the Health IT industry, and overall favorable market conditions for the healthcare sector as large-scale reform is unlikely to occur with the trend of consolidation expected to continue.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki