Orion Health

[mondograss]

With the exception of the new stuff that they're developing, OHE do have a fairly sizeable portfolio of software that is profitable. For the big overseas players, they could be quite an attractive acquisition (at the right price). But of course all the time McRae has a majority stake, a takeover is never going to happen. He knows that if he sold, his company would be pulled apart in a heartbeat.

[Balance]

With the exception of the new stuff that they're developing, OHE do have a fairly sizeable portfolio of software that is profitable. For the big overseas players, they could be quite an attractive acquisition (at the right price). But of course all the time McRae has a majority stake, a takeover is never going to happen. He knows that if he sold, his company would be pulled apart in a heartbeat.

One word comes to mind "RAKON".

Scary when the founder (s) of a company think they know it all.

Amazing as well how long they can string the market along.

[sideline]

S&P index rebalancing coming up next week - is anybody expecting OHE to drop out of the NZ50 ??

[BlackPeter]

S&P index rebalancing coming up next week - is anybody expecting OHE to drop out of the NZ50 ??

Of course will they drop out in due course (not sure about timing). Their current market cap is $184m, however more than half of that is not freely traded (majority shareholder - i.e. only roughly 90 m count for NZX 50 purposes).

Compare e.g. HLG (currently not in the index) with a more than $179 m (free floating, I think) market cap.

[kaituna]

Hi, second post.

I did support this company in the early days but after a lot of thinking I got out. I did ok and didn't suffer any financial damage.

While they have got a lot of awards, etc the problem is that with all these staff and offices, etc then is this sustainable?

I think the overall story is good, they just need a lot more cash to get there.

I am thinking that maybe these are worth a punt at say 50c.

What do other people think?

[Balance]

Or maybe someone thinks they are a bargain as its software has some intrinsic value.Even IQE has intrinsic value

Yup - FEltex and Wynyard also had intrinsic value, just not enough left for shareholders!

[Jonboyz]

Hi, second post.

I did support this company in the early days but after a lot of thinking I got out. I did ok and didn't suffer any financial damage.

While they have got a lot of awards, etc the problem is that with all these staff and offices, etc then is this sustainable?

I think the overall story is good, they just need a lot more cash to get there.

I am thinking that maybe these are worth a punt at say 50c.

What do other people think?

If their is no further news about restructuring or 'refinancing' from OHE and it hits 50c - it would still be a highly speculative buy. Much like buying a lotto ticket, you might be lucky and they might get their s#i+ together or else it could bomb further or go kaput.

[kaituna]

yeah, so they have got a contract to make cdhb paperless in time for their opening of the new cdhb building.

this was for 20 million and they set up an office in christchurch with the aim of having 20 people in this office. I think they have a few less than this.

To make the cdhb paperless is going to cost way more than 20 million. Try 100, at least, maybe 200.

By now everybody must be aware that they have "bought" a lot of business that they have no hope of completing.

So a white knight would need deep pockets to turn this around and make good the promises to clients.

[GTM 3442]

yeah, so they have got a contract to make cdhb paperless in time for their opening of the new cdhb building.

this was for 20 million and they set up an office in christchurch with the aim of having 20 people in this office. I think they have a few less than this.

To make the cdhb paperless is going to cost way more than 20 million. Try 100, at least, maybe 200.

By now everybody must be aware that they have "bought" a lot of business that they have no hope of completing.

So a white knight would need deep pockets to turn this around and make good the promises to clients.

The only large-scale "paperless office" project that I'm aware of was the Land Information New Zealand project about two decades back.

If I recall correctly, it went over budget by a significant amount.

No doubt there are other, more recent, examples. But twenty million does seem remarkably little for a project which may have to incorporate algorithms to decode doctors handwriting.

[mondograss]

ePrescribing, medication and vitals charting and electronic notes and discharge summaries will be the three areas they would need to work on here. Their competitors already have mature products in these spaces. Not sure that Orion has much choice but to compete, but equally unsure why you'd give a contract to a company to develop a product when you can bring in an existing one that does the job and just pay for enhancements to tweak it how you want it.