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People get sick. People need help. Sometimes life spins out of control and people need help in order to help themselves get better. Now I’m not happy about the fact that people get sick. I am happy about the fact that there are companies out there that help these people. If these companies can make money doing so, that’s fine with me. If I can make money on the stocks of these companies, that’s even better.
Today I bought Allion Healthcare (ALLI) at $7.25 per share. I will sell it in 4 to 6 weeks at 8.36. Here’s why I like ALLI:
First of all, this is a GREAT looking chart. This stock just WANTS to go up:
And why shouldn’t it? It’s revenues have grown annually for the last 4 years, as have its earnings. If a company grows its revenues and earnings, its stock price goes up. No big secret. This stock is up 186% off of its 52 week low and its PE is still only 15.
Allion Healthcare is a specialty pharmaceutical company focused on HIV/AIDS therapies. The company offers reimbursement expertise, arrangement of medication delivery and patient consulting services. It operated 11 specialty pharmacies under the MOMS Pharmacy brand in four states and had 15,610 patients at the end of 2007. Allion’s distribution centers are near metropolitan areas in New York, California, Florida, New Jersey and Washington, where the majority of patients live.
Its services include MOMSPak prescription packaging; reimbursement, which assists in reimbursement processes; medications delivery arrangement; and information systems and prescription automation solutions that provide clinical data and enable the transmission of prescriptions. The company also offers specialized nursing services for the timely administration of medications as directed by physicians; specialized pharmacist services, including consultation with patients, physicians, and nurses to provide education, counseling, treatment coordination, and clinical information; and reimbursement experience that assists patients and healthcare providers with the complex reimbursement processes. In addition, Allion Healthcare, Inc., under the name of Biomed, provides specialty biopharmaceutical medications, focusing on the provision of services for intravenous immunoglobulin, blood clotting factor, and other therapies for chronic diseases.
Current treatment for HIV/AIDS includes the use of several different drugs, or "combination therapies" that consist primarily of oral medications taken several times a day, usually outside a clinic or hospital setting. HIV/AIDS is still life-threatening, but can now be treated as a long-term, chronic disease. However, administration of the meds is confusing and the service that ALLI provides has been very well received by patients.
So, not only is Allion a health care company, but it also provides the SERVICE that people need to get well. Organic growth in 1Q09 of the company's core Specialty HIV was 9% y/y, with the aggregate number of Specialty HIV prescriptions filled in 4Q08 tallying 265,455, an increase of 3.7% y/y.
While HIV care is the core business for Allion, what intrigues me most about this company is that it is using its core business strategy of making sure patients understand the process of administering the medication and is leveraging this value added process to patients who require chronic care for other health conditions as well.
Allion Healthcare now operates its business in two segments: Specialty HIV, which is the Company’s legacy specialty pharmacy and disease management business focused on HIV/AIDS patients, and Specialty Infusion, which is the Company’s recently acquired Biomed business specializing in biopharmaceutical medications and services for chronically ill patients. This strategy opens the door to a target market segment which would include any person who is chronically ill…or maybe someday, wellness programs for people who don’t want to become ill. Basically they take the administrative headache out of getting better.
The company intends to continue expansion by raising revenue from its current product base, increasing the number of diseases served and offering more services. It’s open to acquisitions and wants more partnerships.
So how is this strategy working?:
The future earnings picture looks really good. $$$MR. MARKET$$$ projects sales for 2009 to be as high as $477 million which will generate earnings of $0.65/share. At $0.65 per share and a PE of 15, this translates into a stock price of:
$0.65 x 15 = $9.75…which is well past my sell target.
What does the boss think?
“With strong organic growth and two large community partnerships established on the West Coast, we believe our model will continue to deliver on both the revenue and EBITDA lines. Our commitment to both intercity clinics and state governments, were HIV has been ravaging people for years has positioned us as a leader in developing a treatment model for patients living with this diseases.”
“The significant contribution to earnings made by our Specialty Infusion division in its first year of operations more than validates our expectations of a year ago,” said Michael Moran, Chairman, President and Chief Executive Officer of Allion Healthcare. “We believe that our diversified, national specialty pharmacy platform will continue to provide strong organic growth in our existing business lines.”
“Our Biomed Specialty Infusion platform continues to perform better than we anticipated. Through the first nine month of performance since we acquire them, Biomed has grown to a $100 million company focused on a niche business with excellent clinical services and customer support.”
“As we enter 2009, we believe that our national integrated specialty pharmacy platform is well positioned to take advantage of market opportunities that we see. By educating physicians and patients about the full service clinical model and the experienced reimbursement team, the sales group has shown they really understand the market and can deliver strong organic growth in this model. We believe they are fully integrated into our financial and operating reporting systems and look for a solid 2009 performance from Biomed. “
I like companies that help people. I like making money investing in companies that help people. You? YOU? YOU???!
$$$MR. MARKET$$$
Today I bought Allion Healthcare (ALLI) at $7.25 per share. I will sell it in 4 to 6 weeks at 8.36. Here’s why I like ALLI:
First of all, this is a GREAT looking chart. This stock just WANTS to go up:
And why shouldn’t it? It’s revenues have grown annually for the last 4 years, as have its earnings. If a company grows its revenues and earnings, its stock price goes up. No big secret. This stock is up 186% off of its 52 week low and its PE is still only 15.
Allion Healthcare is a specialty pharmaceutical company focused on HIV/AIDS therapies. The company offers reimbursement expertise, arrangement of medication delivery and patient consulting services. It operated 11 specialty pharmacies under the MOMS Pharmacy brand in four states and had 15,610 patients at the end of 2007. Allion’s distribution centers are near metropolitan areas in New York, California, Florida, New Jersey and Washington, where the majority of patients live.
Its services include MOMSPak prescription packaging; reimbursement, which assists in reimbursement processes; medications delivery arrangement; and information systems and prescription automation solutions that provide clinical data and enable the transmission of prescriptions. The company also offers specialized nursing services for the timely administration of medications as directed by physicians; specialized pharmacist services, including consultation with patients, physicians, and nurses to provide education, counseling, treatment coordination, and clinical information; and reimbursement experience that assists patients and healthcare providers with the complex reimbursement processes. In addition, Allion Healthcare, Inc., under the name of Biomed, provides specialty biopharmaceutical medications, focusing on the provision of services for intravenous immunoglobulin, blood clotting factor, and other therapies for chronic diseases.
Current treatment for HIV/AIDS includes the use of several different drugs, or "combination therapies" that consist primarily of oral medications taken several times a day, usually outside a clinic or hospital setting. HIV/AIDS is still life-threatening, but can now be treated as a long-term, chronic disease. However, administration of the meds is confusing and the service that ALLI provides has been very well received by patients.
So, not only is Allion a health care company, but it also provides the SERVICE that people need to get well. Organic growth in 1Q09 of the company's core Specialty HIV was 9% y/y, with the aggregate number of Specialty HIV prescriptions filled in 4Q08 tallying 265,455, an increase of 3.7% y/y.
While HIV care is the core business for Allion, what intrigues me most about this company is that it is using its core business strategy of making sure patients understand the process of administering the medication and is leveraging this value added process to patients who require chronic care for other health conditions as well.
Allion Healthcare now operates its business in two segments: Specialty HIV, which is the Company’s legacy specialty pharmacy and disease management business focused on HIV/AIDS patients, and Specialty Infusion, which is the Company’s recently acquired Biomed business specializing in biopharmaceutical medications and services for chronically ill patients. This strategy opens the door to a target market segment which would include any person who is chronically ill…or maybe someday, wellness programs for people who don’t want to become ill. Basically they take the administrative headache out of getting better.
The company intends to continue expansion by raising revenue from its current product base, increasing the number of diseases served and offering more services. It’s open to acquisitions and wants more partnerships.
So how is this strategy working?:
- Fully Diluted EPS Guidance increased to $0.50 to $ 0.52 per share
- Net sales increased 48% to $96.6 million from $65.3 million
- Net income increased to $3.5 million compared to a net loss of $1.3 million
- Earnings per diluted share increased to $0.13 compared to a net loss of $0.08
The future earnings picture looks really good. $$$MR. MARKET$$$ projects sales for 2009 to be as high as $477 million which will generate earnings of $0.65/share. At $0.65 per share and a PE of 15, this translates into a stock price of:
$0.65 x 15 = $9.75…which is well past my sell target.
What does the boss think?
“With strong organic growth and two large community partnerships established on the West Coast, we believe our model will continue to deliver on both the revenue and EBITDA lines. Our commitment to both intercity clinics and state governments, were HIV has been ravaging people for years has positioned us as a leader in developing a treatment model for patients living with this diseases.”
“The significant contribution to earnings made by our Specialty Infusion division in its first year of operations more than validates our expectations of a year ago,” said Michael Moran, Chairman, President and Chief Executive Officer of Allion Healthcare. “We believe that our diversified, national specialty pharmacy platform will continue to provide strong organic growth in our existing business lines.”
“Our Biomed Specialty Infusion platform continues to perform better than we anticipated. Through the first nine month of performance since we acquire them, Biomed has grown to a $100 million company focused on a niche business with excellent clinical services and customer support.”
“As we enter 2009, we believe that our national integrated specialty pharmacy platform is well positioned to take advantage of market opportunities that we see. By educating physicians and patients about the full service clinical model and the experienced reimbursement team, the sales group has shown they really understand the market and can deliver strong organic growth in this model. We believe they are fully integrated into our financial and operating reporting systems and look for a solid 2009 performance from Biomed. “
I like companies that help people. I like making money investing in companies that help people. You? YOU? YOU???!
$$$MR. MARKET$$$
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