Next Steps to Full ResolutionI bought a lot more shares today because the risk is now significantly reduced.
I think they will receive at least US$ 3 million on the $5 millionunpaid A/R, which is about C$ 0.25/share. Research on Google saysin-network rates are about 2/3 of out-of-network rates. I looked up"adjudication" in Wiki. It means in the medical industry that thedetailed claims are inspected for errors.
I expect they will finish the arbitration process with Kramer fairly quickly, now that they can measure their loss on the insurance company issue. Up to now, they were unable to accurately calculate their loss on the insurance company payment issue because the insurance company was claiming a refund for work done all the way back to Palladium's beginning, which pre-dates NHC incorporation and IPO. Today's deal says these claims will not be pursued.
I think they are also using the arbitration process with Kramer to agree on a price to buy out Kirby's share of Palladium so they can simplify the corporate structure. Kirby will claim his holdings are worth a lot ... room for disagreement. The arbitrator can decide.
As soon as the corporate structure is simplified and Kirby's ownership is eliminated from the picture, then I think there is already a buyout offer on the table, waiting for a clean entity to purchase. It will go quickly. Done by December tax loss selling deadline.
As I said in one of my previous posts, I think this company can do UD$ 0.53/share EPS after deducting minority interests. At 6-10 times earnings, that makes it worth $3 to $5 per share. Risk? I don't see how settling with Kramer can hurt us. And now the insurance company can't hurt us. Current stock price of $1.09 seems like a bargain.