At first, the company talked a lot about the impending healthcare stimulus. They declined to guide for the next quarter, which started the sell off – its unusual for them not to guide – they attributed it to the funky economy.
The Q&A was surprisingly centered on the balance sheet. The company said they signed a decent sized deal with extended payment terms and that a couple of customers have been slow to pay which led to receivables not declining as they had hoped.
This stock keeps popping up on value screens as undervalued relative to its growth. The growth is mostly through acquisition and the balance sheet is becoming increasingly precarious in an uncertain economy. The short interest is too high – over my comfort threshold really – but I’m sticking around because its got all the earmarks of deceptive results and an inevitable reveal to come.