Proxymed (PILL)

Well, Proxymed (PILL) is on the surface a complete disaster. This must be the first conference call I have ever listened to where the company did not release its earnings report prior to the call. Wondering why? PILL´s net loss was nearly $100 million! This is mostly all non-cash writeoffs, but since the company did not have a strong cash position to start, it´s unclear as of now what the actual financial position of the PILL is.

My recommendation: I´ve dumped all my shares and I´ll wait to re-enter this name when the financial picture becomes clearer. Normally I would not sell a stock in this situation, since these massive write-offs can coincide with a bottom in the stock, but in this instance the financial picture is so murky, I´d prefer to wait on the sidelines until a clearer picture emerges.  I see no near-term catalysts that can support this stock in any manner.

The lesson: Always be diversified in the stock market casino. PILL appeared on paper to be a good bet, and it may still turn out in time to be a good gamble, but as of now the stock and business is way too risky.   

Comments

[Brian P. Oneill]

I am the CEO of Office Ally (a regeonal clearinghouse based in Southern California). We send transactions to Proxymed for insurance companies that we do not have a direct connection. Proxymed is currently 4 months behind on paying their rebates to us. I have spoken to other vendors and they have also not been paid in months. I believe it will not be long before they will be filing bankruptcy.
Brian P. O'Neill
President/CEO
Office Ally
(949)290-6866

[Yehuda]

Hi there Brian,

I´m not sure bankruptcy is a risk with Proxymed.

I presume they are not paying bills, to conserve cash as their revenues fall. That sucks for any business that is associated with them. But bankruptcy, seems remote, primarily since the business is generating cash and the debt level is manageable.

I personally think they will turn the business around, but it will be a shadow of its former self.

Good luck.

CasinoCapitalism.com

[John Smith]

Thats odd. I heard that Office Ally owed more to Proxymed than the rebates owed to Office Ally... COUGH ERA

[howdoyousleepatnight]

So, do we all have our plan B in place?