Healthcare
Eric Fernandez’s latest short idea was generated from his Breaking Growth Model - in his 29-page initiation report, Eric discusses how 1) OMCL’s customers, the health systems and pharmacies, are under immense financial pressures. 2) Competitors tend to be larger / better resourced and OMCL has been underinvesting in R&D. 3) Sales have slowed and have now started to decline (even in its much-touted Advanced Services segment). 4) Margin declines underscore a fundamental lack of pricing power / uniqueness. 5) Estimates and guidance appear aggressive. 6) Earnings quality issues including questions re. bookings disclosures.
Edition: 170
- 29 September, 2023