Computer Programs & Systems
From Value Discipline Computer Programs and Systems (CPSI) has an incredibly generic name that sounds like a circa-1960 course at college. However, this is a company with a far from generic or prosaic record. This is a business focused on…
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From Value Discipline
Computer Programs and Systems (CPSI) has an incredibly generic name that sounds like a circa-1960 course at college. However, this is a company with a far from generic or prosaic record. This is a business focused on delivering healthcare information services.
I believe that this business has a strong competitive moat given its focus on small community hospitals. One of the important characteristics of businesses with a competitive moat is "serious" profitability. This business has a return on capital of 42% over the last twelve months.
As an experiment, I have written a more complete overview of the business as a series of links to quicksharing.com files. You will find a discussion of changing economics of reimbursement, some discussion of street expectations, as well as links to a Wall Street Transcript interview with a portfolio manager who has a position in the security. As well, I have provided a couple of spreadsheets of ratio analysis that demonstrate the improving profitability that this company has experienced.
I look forward to your comments regarding this somewhat different approach to providing blog information.
Disclaimer: Neither I nor my family have a current position in any of the securities mentioned. Some clients do own a current position in CPSI and in MCK.
http://www.valuediscipline.blogspot.com/
Contact [email protected] for any questions or corrections.
Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
