Quality Systems Wednesday, June 25, 2008
Posted by ei-forum in US Traded Stocks.trackback
Once again, we witnessed Mr. Market in one of his crazy days where he completely misunderstands/undervalues a company.
Following news that Mr. Silverman, Quality Systems (QSII) CEO since 2000, resigned the stock dropped by almost 5%. Does this event change QSIIs numbers? No. This remains a strong business with a bright future operating in the right sector. Healthcare will continue to grow and QSII is in an ideal position to reap all potential gains.
All the key management team remains in place and this event does not change the outlook for the company. If anything, it will stop recent boardroom discussions and hopefully serve as a catalyst for more focus.
Having said this, despite recent upgrades and BUY ratings, QSII currently has a short percentage of the float of 30.20%! Is this justfified by the following numbers? Up to you to make your mind up:
- ROA – 23.67%
- ROE – 39.11%
- Net margins – 21.49%
- Operating margins – 31.84%
- Sales growth – 18.67%
- Profit growth – 20.60%
- EPS growth – 19.65%
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