| To: Michael Olds who wrote (306) | 10/13/2001 11:27:17 AM | | From: Sr K | | | | They paid $5.285 per share and gave 100% protection (and later 80%) above $4.00 per share to 2003. And in doing so used $185 m of cash.
"this great poker player has pulled off a stunning hand"
What does that mean? It looks like there is no resistance on the downside, and at every temporary level, there is resistance 20 to 60 cents higher. WebMD has given up a card (cash) and seems weaker after this deal. |
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| To: Sr K who wrote (308) | 10/13/2001 12:42:55 PM | | From: Michael Olds | | | | David and Sr:
On the 10th in a matter of less than 30 minutes 120,000 shares moved the market from 3.41 to 3.94.
Last night, after hours, about 1000 shares moved the market from 3.45 to 4.00.
I suggest that a buy of 35,000,000 shares at $5.28 was a coup.
I am thinking that the factors keeping down the price at this point are:
1. The overhang. Estimated at the last CC to be something like 70,000,000 shares including the Quintiles shares.
2. The lawsuit between Quintiles and WebMd.
A. Partily for purely psychological reasons..."I'm bigger than you are."
B. Partly for the control of the data
C. Partly for the expense
3. The fact that this is tax selling season in a bad year.
Otherwise the positives are very compelling:
A. First and Formost MW and team with a very strong track record
B. Cash and no debt
C. A good product and a new product which is by all reports going to be well received
D. The turn around to profitability is still on schedule for Q4
And should have been reflected in a higher price than the current one except for the very negative market which is almost as pessimistic here as it was optimistic a couple of years ago.
So I believe the ...what is the term Soros uses? Inflection Point...occured Friday with the announcement of the settlement which removes what looked to me like the worst dark cloud.
And, oh yes, I believe I answered the argument about the guarantees in my previous. I seriously doubt selling this company before it was highly profitable, with the stock price very much higher than this, after at least one split, and at a huge premium would have occured before a few more years in any case. Just my impression of the way MW handled MEDCO, and was handling SNTC before the sale of MEDCO changed the nature of what SNTC was going to be. |
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| To: Michael Olds who wrote (309) | 10/13/2001 3:25:32 PM | | From: Sr K | | | | B. Cash and no debt
C. A good product and a new product which is by all reports going to be well received
How much cash do you estimate they have after paying the $185 m?
Is the wireless product still on track, or which new product are you referring to? |
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| To: Sr K who wrote (310) | 10/13/2001 5:47:28 PM | | From: Michael Olds | | | | Not an exact amount but some where around 500 million (@$2.00/share) if you count what they will likely get for Porex.
Yes, I was speaking about the wireless which has a name now ?Utilia or something like that and is due out any day now. Has been out in beta for a while now and apparently is getting good feedback. |
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| To: Michael Olds who wrote (306) | 10/15/2001 1:54:07 AM | | From: tech101 | | | | WebMD Corp.
Improving Prospect Ahead -- Part 1
Ranking -- Accumulate, Long Term Buy
10 August 2001
David R. Risinger, CFA
First Vice President
Brandon R. Fazio
Industry Analyst
HIGHLIGHT
...
We continue to view WebMD as an interesting small to mid cap value situation. We think there is an opportunity for patient investors since the stock is only trading at an enterprise value multiple of 2x current revenue and its assets have the potential to deliver 20%+ operating margins over the longterm. Other leading healthcare IT companies are trading at 4x revenue.
...
From Marrill Lynch Research Report
The Research Reports are free for 30 days trial at
research.askmerrill.ml.com |
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| To: Michael Olds who wrote (311) | 10/15/2001 2:10:07 PM | | From: tech101 | | | | The settlement with Quintiles is certainly mutual beneficial.
However, the agreement probably means hundred million dollars, even billions of dollars (just look at MEDCO)for WebMD.
The result of this battle and how it was handled also shows that Wygod is indeed the strongman in the tough healthcare business and he knows how to play with it, which gives a lot of confidence to the stock. |
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| To: Keith Fauci who started this subject | 11/2/2001 2:28:00 PM | | From: Michael Olds | | | | WebMD Announces Increase in Stock Repurchase Program
PR NEWSWIRE - November 02, 2001 13:49
ELMWOOD PARK, N.J., Nov 2, 2001 /PRNewswire via COMTEX/ -- WebMD Corporation (Nasdaq: HLTH) today announced that it has utilized all of the $50 million previously authorized for its stock repurchase program and that an additional $50 million has been authorized. Under its stock repurchase program, WebMD may purchase shares of its common stock from time to time in the open market, through block trades or in private transactions, depending on market conditions and other factors. The previously announced repurchase of shares from Quintiles Transnational Corp. was not part of this stock repurchase program. |
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| To: Michael Olds who wrote (315) | 11/12/2001 2:22:52 PM | | From: tech101 | | | | Electronic Billing
Anthrax Scare Spikes Interest in Already Surging E-Billing
5 November 2001
Avivah Litan
Recent anthrax cases further heightened the trend toward consumers viewing and paying bills electronically. However, high costs and inconvenience still keep some from adopting this technology.
Recent anthrax cases further heightened the trend toward consumers viewing and paying bills electronically. However, high costs and inconvenience still keep some from adopting this technology.
Event
On 5 November 2001, Gartner reported a large increase in the number of consumers signed up for e-billing applications in 2001:
By the end of 2001, Gartner forecasts that 32 million Americans will view credit card and other statements online, a 60 percent increase over the 20 million who did so at the end of 2000.
Nearly 27 million of these consumers will view their credit card accounts online. Gartner expects the number of consumers viewing bills and accounts electronically to reach 64 million by year-end 2003.
Although the spike largely stems from the increasing popularity of online e-billing, some Gartner clients report a 20-percent increase in consumer enrollment since the anthrax scare began in September 2001.
First Take
Mail safety concerns raised by recent anthrax scares encourage consumers and billers to pursue e-billing and payment channels more aggressively. Even without these concerns, Gartner has found that e-billing has finally started to take off in 2001. One major factor unrelated to recent events is that credit card issuers have succeeded in attracting consumers to online account management by giving them value-added services such as daily balances and responsive self-service.
According to a recent Gartner survey, consumer preferences differ when choosing how to receive and access bills online. Options for service range from e-bill aggregation services offered by banks, brokerage firms, and popular portals such as America Online, Yahoo and Quicken.com. More than 48 percent of consumers prefer going to their billers' Web sites directly to access and pay bills while 24 percent prefer to receive a consolidated set of bills at their banks' Web sites.
The billers have done the best job in providing easy-to-use services, while banks and other service providers that aggregate consumer bills still have a long way to go in providing comparably easy services. Although recent events provide customers with more reasons to start accessing their bills online, the barriers to getting started, especially with aggregated e-billing services, remain too high for most consumers.
The anthrax scare has heightened interest in a market already poised to take off. The e-billing market has a long way to go before it replaces all consumer billing paper, but consumers recently have shown their enthusiasm for signing up for biller-direct systems. Banks and other second-party billers need to make their bill aggregation and payment services just as easy to use as the biller-direct systems before they can enjoy similar success with consumers.
Analytical Source: Avivah Litan, Financial Services Payment Systems
Written by Dean Lombardo, gartner.com |
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| To: Keith Fauci who started this subject | 11/12/2001 4:04:34 PM | | From: Michael Olds | | | | WebMD Announces Third Quarter ResultsLoss Before Restructuring and Non-Cash Items Declines 70% From Prior Year and 18% From Last Quarter
PR NEWSWIRE - November 12, 2001 16:01
ELMWOOD PARK, N.J., Nov 12, 2001 /PRNewswire via COMTEX/ -- WebMD Corporation (Nasdaq: HLTH) today announced financial results for the quarter ended September 30, 2001.
Revenue for the September 2001 quarter was $167.0 million compared to $151.2 million for the September 2000 quarter. The loss from continuing operations, excluding restructuring, integration and non-cash expenses, for the September 2001 quarter was ($19.5) million or ($0.05) per share, compared to ($65.8) million or ($0.27) per share for the September 2000 quarter. The Company recorded a non-cash charge during the September 2001 quarter of $3.827 billion or ($10.64) per share related to the impairment of its long-lived and other assets, primarily goodwill and other acquired intangible assets. The net loss, including the non-cash charge discussed above, for the September 2001 quarter was ($4.624) billion or ($12.86) per share compared with ($786.9) million or ($3.17) per share for the September 2000 quarter.
As of September 30, 2001, the Company had approximately $586.8 million in cash and short-term marketable securities compared to $588.2 million as of June 30, 2001.
Anthony Vuolo, Chief Financial Officer stated: "The results for the September 2001 quarter are consistent with the objectives we outlined a year ago to continually reduce the Company's loss before restructuring and non-cash items during 2001 with the goal of eliminating this loss as we enter 2002. During the quarter, the loss from continuing operations before restructuring, integration and non-cash items declined by 70% compared to September 2000 and by 18% compared to June 2001. We are well positioned to take advantage of the significant opportunities that lie ahead with ample financial resources and the leading assets in the industry."
Revenue categories are as follows (in millions):
Q3 2001 Q3 2000 Q2 2001
Transaction services $91.6 $88.2 $96.9
Physician services 61.1 29.0 65.1
Portal services 14.3 28.6 15.9
Other products -- 5.4 0.8
Total revenue $167.0 $151.2 $178.7
Transaction Services revenue was $91.6 million for the September 2001 quarter compared to $88.2 million in the September 2000 quarter and $96.9 million in the June 2001 quarter. Total electronic transactions were 523 million for the September 2001 quarter compared to 487 million transactions in the September 2000 quarter and 536 million in the June 2001 quarter. The revenue increase compared to the September 2000 quarter was due to the inclusion of CareInsite for the full September 2001 quarter offset by reductions related to consolidating duplicative product offerings and certain legacy products. The decline in transaction services revenues compared to the June 2001 quarter reflects decreases resulting from a combination of seasonality factors and the anticipated reduction in revenues related to consolidating duplicative transaction services offerings and to certain legacy product offerings.
Physician Services revenue was $61.1 million for the September 2001 quarter compared to $29.0 million in the September 2000 quarter and $65.1 million in the June 2001 quarter. The increase in physician services revenues compared to the September 2000 quarter was due to the inclusion of Medical Manager Corporation for the full September 2001 quarter partially offset by the revenues from sponsored subscriptions that were eliminated effective December 31, 2000 as a result of the termination of the Company's agreement with Dupont and the revisions to the Company's agreement with Microsoft. The decrease in physician services revenue compared to the June 2001 quarter resulted from the previously announced impact on new system sales associated with travel and scheduling conflicts and other delays in the month of September.
Portal Services revenue was $14.3 million for the September 2001 quarter compared to $28.6 million in the September 2000 quarter and $15.9 million for the June 2001 quarter. The decrease compared to the September 2000 quarter was attributable to the Company's relationships with News Corporation, Microsoft and Dupont which were restructured or terminated effective as of the end of December 2000 and the impact of the softening of the Internet advertising market on both the Company and certain of its customers. The decrease in revenues compared to the June 2001 quarter was attributable to a combination of the deferral of certain committed advertising sponsorship until the fourth quarter of 2001 and to the continued softening of the Internet advertising market.
Operating expenses before restructuring and integration, depreciation, amortization and other non-cash expenses were $192.9 for the September 2001 quarter compared to $226.9 million in the September 2000 quarter and $210.6 million in the June 2001 quarter, reductions of 15%, and 8.4% respectively. The reduction in expenses reflects the benefits of both the Company's integration initiatives and the restructuring of many of the Company's strategic relationships. Sales, marketing, general and administrative expenses included severance expenses of approximately $3.0 million related to the departure of the Company's former President during the quarter.
Interest income was $6.4 million for the September 2001 quarter compared to $9.9 million for the September 2000 quarter and $8.1 million in the June 2001 quarter. The decline was due to a decline in interest rates and lower amounts available for investment.
As the Company previously announced, WebMD determined that it was necessary to conduct a review of its long-lived assets, primarily goodwill and other acquired intangible assets for impairment. These assets were recorded as a result of a series of acquisitions completed between November 1999 and September 2000. The Company's common stock was the primary consideration for these acquisitions. As a result of this review, the Company determined that its long-lived assets were impaired and recorded a write-down of $3.827 billion or $10.64 per share to adjust the carrying value of its long-lived assets to fair value.
During the September 2001 quarter, the Company acquired approximately 2.7 million shares of its common stock for $9.4 million under its previously announced stock repurchase program. As a result of the settlement with Quintiles and an additional purchase under its stock repurchase program, the Company has reacquired a total of approximately 47 million shares for $235 million in private transactions since the end of the September 2001 quarter. Since October 2000, the Company has reacquired a total of approximately 77 million shares of its common stock, including common stock equivalents related to the convertible preferred stock reacquired in February 2001.
Martin J. Wygod, Chairman and Chief Executive Officer of WebMD, stated: "We believe that the restructuring effort initiated a year ago will be substantially complete by the end of the year. During this process, we have consolidated operations and products, realigned strategic partnerships, while continuing to invest in products and services that will drive growth of our business. Today, WebMD is a company with significant strategic assets that are free of encumbrances and with management and employees that are fully focused on the business and opportunities at hand. As we look forward, we are excited by the long-term outlook and the environment that exists for both revenue and earnings growth. With regard to 2002, we believe that we will not begin to see traction in revenue growth until the last six months of the year, due to the uncertainty of the economy, as well as the timing of both new product distribution and the first scheduled HIPAA transaction standard implementation date." |
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