UnThreaded | Threaded | Whole Thread (26) | Ignore Thread Prev | Next
Author: blue9718 Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1856  
Subject: Re: To E7 Date: 3/9/2000 3:49 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 34
OK Greg here goes my attempt at HLTH Thanks in advance for your help! You know HLTH will be the information ticket for your bio-techs.

#1 Top Dog First Mover

Healtheon/WebMD is unquestionably the top dog and first mover combined! They are huge. In May of 1999 these two rival companies Healtheon and WebMD/backed by Microsoft combined to form a powerhouse to design and develope the first internet based information and transaction system to exchange secure information among the health industry. By merging, the two companies have formed/forming the First Complete Health Solution"- the #1 health information center for consumers, #1 in healthcare transactions and #1 in a physicians Management System (health care information for docs). Recent HLTH buys include Medical Manager, CareInsite, OnHealth Network,Quintiles, ENVOY, Kinetra, Med America, Medcast, News Corp. Getting all of the companies integrated and working smoothly will have it's challanges no doubt and take a little time.

#2 Sustainable Advantage
Business momentum
HLTH is creating a very attractive business model. The on line consumer site is #1 and as business grows many new and return users will turn to the consumer site for the best health information avaiable. Doctors will rely on HLTH for up to date quick information about the medical community, including job oppurtunities, medical library, research, medications etc.. Don't forget all that great bio information that is comming, this is wear docsand consumers will learn about the genes that are discovered and the treatments they are trying. The drugs that are in the final stages of development. How to use them and their side afects.

Revenues expected from the consumer and physican sites are in the form of:

1. Advertising to both physicians and consumers, it has beed said that getting your name on WebMD is the best!!

2. Sales of medical/heath/sport supplies to the consumers and physicians. Who knows all the possibilities here, vitamins/safety equipment for sports/band aids/wheelchairs the possibilities are endless.

3. Sales of medical information to consumers and physicians. Again lots of possibilities here books magazines, articles, transcripts, research, bio-tech developments :).

Now the company is also is creating a medical transaction management system. To include information and revenues from transactions on medical: enrollment/ eligibility/ refferals/authorization/labs/diagnostic ordering/clinical data retreial/medical claims processing/percription claims processing as well as a network management system.

HLTH is planning to reduce individual transactions costs from estimates as high $15 per single medical claim transaction to as low as $0.25 cents plus a transaction fee. Reducing millions in industry transaction waste. There are an estimated 30 billion medical claim transactions per yer.

HLTH's online network vision has challaged themselves to create a system that is secure and private, fast, 24hr reliable, synchronized,high volume usage,and manageable. Also, meeting Hippa requirements as stated by a 1996 law. (Greg....have no clue here!)

HLTH's diversified revenues have grown the forth quarter 1999 113% to $33.2 million. Yearly 1999 revenue growth was up 109% to $102.1 million. Of course so did their debt, remember all those companies they aquired, they are not free. EBITDA for the quarter was -.42cents per share and a net loss per share of $-1.98 per share. The yearly EBITDA was a loss of $-1.03 per share. The company also claims to have a nice $1.5 billion in cash with pending acquisitions. Not too shabby.

Clark states in his 1999 4th Quarter Results
"We will continue to build on this momentum to deliver against our five key assets-the number one e-Health brand, world-class partnerships, superior connectivity, extensive distribution and compelling content."


HLTH has a strong vision to connect the medical community. The expected growth and revenues are tremendous..we are talking gold mine! Once this train is up running there will be no stopping it. Of course not until they are very rich and control everything, then the govt might call it a monopoly:) Would they......want to mess with the medical system that works? No, just pay a fine.

COMPETITION
Inept Competition! No competition exists in connecting all medical areas as discussed above into one, as HLTH.
HLTH by far holds the most market capital. The only "end to end" solution!

There are small competitors in single fields:

Consumer Health:
drKoop.com
Medscape

Medical Info systems & or Software:
Cerner
IDX Systems
Apache Medical Systems

Medical Management
Express Scripts
Advance Paradigm
Caremark Rx

Online Drugstores
Planet Rx.com
Drugstore.com

#3 Share Apreciation
Well it gets a little tricky here. The stock has gone from 16-120 and now at 42. The market is very volatile right now. RB's like CRA and HGSI drop and incline the past few weeks 10-30+ points a day. The relative strength is I think 74. But now the charts compare hlth with aol and yahoo etc.. I hardly find many similarities. Sure they are both online service providers. But HLTH is only sole medical related service provider of it's kind (e-health). Put it in a class of it's own with medical competitors and we would see a very different number like maybe 100. But now we do not create a new catagory for every company out there do we. I grant HLTH a relative strength greater than 89, comparing it only to medical competitors!!

#4 GREAT MANAGEMENT
The vision of HLTH is headed by Jeffery Arnold current CEO. Arnold is 31 and former founder/CEO of WebMD. Before WebMD, Arnold at 24 with his wife in 1994 was founder/CEO/Chairman of Quality Diagnostic Services. Attended University of Georgia. Seems to be a family man and likes to make a few deals. Risky, used a family investment to begin his career at QDS. The man is also very wealthy named 2 times in Fortune and Forbes for one of the most valuable men of the year. Did a promotion with Bo Jackson earlier with WebMD has wit and shows good taste.(Discloser Auburn Tiger Fan) Backed by Microsoft, not something many can say. Arnold is invested in HLTH holds 5057.8 shares, 7.01%. A man works harder when he is invested..right? :) Arnold is the one who revised Clark's dream into a vision that will work and has impressed and draw investors opinions.

Pavan Nigam heads up the Technology vision as Chief. Started in with Healtheon as the Chief Technology Officer, co-founder and Executive VP. Nigam worked as Division manager for Silicon Graphics managed the Time Warner Interactive TV project and Casevision products. He also worked for Intel and has an Electrical Engineering degree form Indian Institute of Technology and Masters in Computer Science from the Univ. of Wisconsin-madison.

Jim Clark was the original founder of Healtheon. Clark, founder of Netscape and Silicon Graphics is Considered the creator of the medical integration idea. Clark is now a back seat driver on the board of directors after the WebMD merger. Termed the gatekeeper

Other Great Management can be found at http://www.webmd.com



Partners
During the past year and a half the company has made over 80 Acquisitions and Partnerships to help them meet their goal. The list of Partners is tremendous. I shall list.......


HEALTHCARE PARTNERS:
Beech Stret
Hill physicians
Dupont
Healthsouth
Humana
Merck-Medco
Brown and Toyland
United Healthcare
SmithKline Beecham
Neoforma.com
NotifyMD
Matria healthcare
Medibuy.com
McKessonHBOC
Premier Hospitals
The Health Pages
CVS/pharmacy
Caredata.com
Thomson Healthcare Information Company
Univ. of Alabama School of Medicine
El Lilly

TECHNOLOGY PARTNERS:
A.D.A.M. Software
AHT
Covad
Dell Computers
Intel
Ovid Technologies
J&C Nationwide
Lycos
InsWeb
HNC Insurance Solutions
Microsoft/WebTV
Medic computer Systems
MedQuist
Softbank Corp.
Superior Consultant Company
Premiere Tech.
Physician's Data Network
YouDecide.com

MEDIA PARTNERS
News corp.
Barnes & Noble
Excite @ Home
Security First Network Bank
E*Trade
Microsoft/MSN
Medsite Publishing
Readers'Digest
Sportsline USA/CBS Sportsline
Associated Press
Bloomberg

SHAREHOLDERS
20% institutions as of 3/8 on e*trade
Institutions
Janus
Filelity
Amerindo Inv.
ADVR
Invesco Trust Co.
Bessemer Group
Bowman Capital
Management LLC
Integral Cap
MSDW Advr
AXA Financial
Esses Invest.
Co.,LLC

FUNDS
Janus
Invesco
Putnam
T Rowe Price
Amerindo
Strong
Oppenheimer

INSIDERS
Microsoft
United Healthcare Corp.
Kleiner Perkins C
Jeffrey Arnold
Pavan Nigam
etc..

#5 THE GREATER THE CONSUMER BRAND THE BETTER
I believe Kendixonmd stated it best. HLTH is making a name for itself in the medical community and at the public level. Even had Mohammed Ali doing a commercial for them at the Super Bowl. They are the biggest of all e-health!

#6 OVERVALUED
As of now HLTH is not overvalued! Then again I believe CRA was not overvalued either so TMF called them overvalued. History can repeat itself!

The task for HLTH at hand is not without it's share of obstacles. Getting the medical community to standardize.... Getting everyone online......creating a system with all the capabilities it says it must have.......The ongoing security issues.....(yet realize we put all our financial info on the net can this really be much different?.........Getting insurances to desire the new system........

The process will not evolve overnight this is a LTBH stock. Not expected to be profitable until 2002. Patience and confidence is a must. Volatility is expected.

But it has already made great advances and aspects of the company are in swing. View it yourself http://www.healtheon.com

I can't name another RB company in which the competition is so far away or nonexistant. With so much size and backing.

As far as stock price goes, I think HLTH is simply taking a back seat to bio-techs. Health investors are picking bio first and watching HLTH.... You know rounded portfolio, one wireless one health. Bio gets picked first. Have they considered the link between biotech and HLTH......... The manner in which people and doctors are informed about the bio sector, the speed in which eligibility, labs are performed. The speed in which a person can be treated...... I am sure there are many takes, But I am sure I bring up some valid thoughts. How many people actually know what HLTH is becomming as drejt wrote a few weeks ago.
Then lets take a look at online providers. Grouping Aol yhoo and hlth together again for a moment...the online sector is not as strong as others right now. But I still calim HLTH is different, doing something no one has done before and doing even a little before everyone is ready. Knowing what people need before they want it. Then again talking about it and taking time to develop it.

Did everyone back some years think microsoft would be on everyones computer?

Let me know what you think ? I am tired and am a terrible speller! When I moved from the North to the South I lost my ability to spell. Sorry for sp mistakes NEED SPELL CHECKER!

Disclosure I am LTBH HLTH HGSI CRA

Lots of Thanks,
Chris
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (26) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement