You can wait for your pitch

You can wait for your pitch
OpenClipart-Vectors / Pixabay

A couple weeks ago, I stumbled on Healtstream Inc (HSTM). The stock was significantly going down as the quarter’s results didn’t meet the expectations Sometimes, sharp drops make great buying opportunities. It’s up by 15% since then. So, I had a look at the company’s profile.

HealthStream provides workforce software-based training solutions for healthcare organizations (71% of revenues), patient experiment survey solutions (12% of revenues) and a platform that manages medical staff credentialing.


Consistency is what makes the top 50 best-performing hedge funds so strong

Every month and quarter, multiple reports on average hedge fund returns are released from several sources. However, it can be difficult to sift through the many returns to uncover the most consistent hedge funds. The good news is that Eric Uhlfelder recently released his "2022 Survey of the Top 50 Hedge Funds," which ranks the Read More

  • The revenues from the first 2 solutions (training and survey) are down; they are essentially buying growth. As the CEO said:  “The second half of 2016 has been very busy with three acquisitions”.
  • The cash flows are essentially coming from depreciation and amortization.
  • The price/cash flow ratio is rather high, 30+ times (it’s expensive).


  • They expect their operating incomes for 2017 to increase by 50% to 65% as compared to 2016 and the consolidated revenues to grow by 10%-14%.
  • The company has a good balance sheet and good cash reserve.

Like Warren Buffett says:  “The stock market is a no-called-strike game. You don’t have to swing at everything — you can wait for your pitch.” I don’t need to have 10 new good companies per year to get good returns. So, I’ll pass for now as I don’t see in HealthStream a great opportunity.

Updated on

No posts to display