RE:Assessmentretiredcf wrote: Added a few more today at $7.32. GLTA
Does the recent acquisition have a significant impact on QIPT"s prospects?
The company acquired (Great Elm) makes sense for QIPT, being a respiratory company with presence in eight states and 270,000 customers. At $80M it is a sizeable deal, but adds $60M in revenue and $13M in EBITDA. There should be $2M in cost savings and it is accretive to cash flow. The market likes the deal. We think it is fine; we might have preferred the vendor take more in shares, to ensure alignment, but on the other hand, a mostly-cash deal is less dilutive. Good earnings growth is expected overall and we think the stock looks decent for a small cap heathcare name. (5iResearch)
retiredcf, the thing that I have always liked about 5iResearch is that they typically don't own the companies that they research. That being said what does it take for these guys to give Kudo's when the company continues to fire on all cylinders.
I would say that most investors, current and potential really like this deal, the markets as well. It's fine doesn't fit the bill and most investors prefer less dilution when ever possible.