Orion Health

[Balance]

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.

So typical of NZ software companies (Wynyard and in the past, Provenco) to bid aggressively for contracts and then, bleed to death servicing the contracts.

Sounding like Orion is no different - what a shame.

[kaituna]

Yeah but it will be good to see them at last being called to account for their actions. They have had venrure capital before as well,

I see that the CIO of XXXX dhb retweets their tweets.

As various people have pointed out then this is just a portal which gathers data from underling systems and brings it up for a view.

This means that every site will require a large amount of custom written middleware to tie this all together,

[Kay]

Do any shareholders think a 90c share is worth buying?!

I can't make any sense of it

[whatsup]

Not for me now at .50 may be a small buying but not via this cap raising imo.

[Balance]

Not for me now at .50 may be a small buying but not via this cap raising imo.

Buy only when the smart money moves in - Diligent and Xero are the best examples.

Those who bought into Provenco, Cadmus, Wynyard etc thinking that the shares look cheap as they dropped towards zero were looking in the rear mirror as they drove into a train.

[RupertBear]

Do any shareholders think a 90c share is worth buying?!

I can't make any sense of it

The advise I have been given is to take up the rights offer to avoid dilution or sell them on the market. Have been told it is a high risk but potentially lucrative opportunity ...or not. I am still undecided having lost a lot having faith in Wynyard surviving

[Kay]

I find it hard to justify 90c. Will likely be able to buy them on the market for less before the months end.

My holding is down 65% since my initial investment last october. I guess I'm screwed either way!

[RupertBear]

I find it hard to justify 90c. Will likely be able to buy them on the market for less before the months end.

My holding is down 65% since my initial investment last october. I guess I'm screwed either way!

Yes I know what you mean Kay. I also think they will go down below 90c but I have decided to take up the rights offer if it will help them survive. I may well be throwing good money after bad but I would like to see them succeed.

[RRR]

Disc- bought a few OHERA today.

Orion have finally given a financial forecast for next year - $200-220 million revenues and profitable by 2nd half of FY18! I am sure many of you noticed this, but no one has mentioned about this on this forum...Market cap is $160 million ($190 million after rights issue at the current price). Approximately 40-50% of the revenue is recurring.
Current research spend of 30% of revenue is excessive and will come down in the future.

I see good value at this price, but future is very uncertain!

[Lola]

Disc- bought a few OHERA today.

Orion have finally given a financial forecast for next year - $200-220 million revenues and profitable by 2nd half of FY18! I am sure many of you noticed this, but no one has mentioned about this on this forum...Market cap is $160 million ($190 million after rights issue at the current price). Approximately 40-50% of the revenue is recurring.
Current research spend of 30% of revenue is excessive and will come down in the future.

I see good value at this price, but future is very uncertain!

Agree but can one have faith in those revenue projections?
Mr McRae is a very smart dude but may be the real smart thing would have been for him not to take up his entitlement and instead negotiate with a receiver if there is one

Just a random thought