# PME - Pro Medicus



## System (6 September 2010)

Pro Medicus Limited (PME) is a provider of IT solutions and services to the private healthcare industry. The suite of products which previously comprised of practice management, e-health and digital imaging integration products now includes 2-D digital radiology (PACS) and advanced 3-D clinical products plus a range of services centred on the company's product offerings.

http://www.promedicus.com.au


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## piggybank (3 December 2013)

Being going north for a while now but still no interest here!!

Closed at 77c today.


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## piggybank (23 April 2014)

A daily P&F update


​


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## galumay (28 June 2018)

PME was brought to my attention today by a fellow investor - he bought in around 80c, they hit $8 today on the back of some contract wins. A very impressive business, meets nearly all my key metrics, no debt, well managed, founding owners more than 50% invested, a competitive advantage and great track record of growth. 

The missing metric is price! Its way over my calculation for range of IV so it will go in the watchlist for a big market downturn!


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## InsvestoBoy (28 June 2018)

galumay said:


> PME was brought to my attention today by a fellow investor - he bought in around 80c, they hit $8 today on the back of some contract wins. A very impressive business, meets nearly all my key metrics, no debt, well managed, founding owners more than 50% invested, a competitive advantage and great track record of growth.
> 
> The missing metric is price! Its way over my calculation for range of IV so it will go in the watchlist for a big market downturn!




What are your key metrics?


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## galumay (28 June 2018)

InsvestoBoy said:


> What are your key metrics?




as I said, "_no debt, well managed, founding owners more than 50% invested, a competitive advantage and great track record of growth._"

I also look at a range of other metrics, ROE, ROIC, EV/EBIT, (Fixed assets+Working Capital)/Earnings,
Working Capital requirements, etc. My valuation range looks at a couple of different calculations of cash flow and earnings and then applies them in a DCF formula.

I try to build a picture of the business from the annual reports and then develop a narrative about the business in terms of what it does, any competitive advantage and examples of good management.

I try not to read what anyone else thinks about the business until I have at least had a cursory look at the key metrics and understood the business.


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## peter2 (18 July 2018)

Educational post using PME as the example of a short term setup within a larger time frame setup. 

Looking at the weekly chart we see that PME is currently in a corrective pattern after an impulsive move up from $5 to $9. We also see that this corrective move hasn't pullback very much at all. Price did touch the 50% PB level which surprised me when I placed the fib tool (not shown). 

We anticipate another impulsive move up when this correction is over. So we're looking for signs that it might be done. The weekly chart shows one of my fav bullish bars, an outside reversal bar with high volume (arrowed). That's my wake-up call and I could buy at Monday's open with an iSL at 7.00. 
OR I could wait for a smaller sized setup. 

Today's intraday daily chart shows that PME may close >8.00 for the first time in 10 weeks. That's a minor BO-NH and triggers a setup with an iSL at 7.60. 






I use this technique of finding a setup in a smaller time frame within a larger time frame setup or trend in my forex trading.


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## tech/a (18 July 2018)

Nice.
There appears to be some nice accumulation in the pattern/s
Both longer and shorter term.


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## Mr Bear (20 July 2018)

galumay said:


> PME was brought to my attention today by a fellow investor - he bought in around 80c, they hit $8 today on the back of some contract wins. A very impressive business, meets nearly all my key metrics, no debt, well managed, founding owners more than 50% invested, a competitive advantage and great track record of growth.
> 
> The missing metric is price! Its way over my calculation for range of IV so it will go in the watchlist for a big market downturn!



Hi Galumay,

What discount to your IV would you need to buy?


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## kid hustlr (18 August 2018)

As usual P2 called this one nicely.

Can be a little whippy and there is the odd stop run by the looks (traded 8.08 on Monday!) however this one looks very healthy with a great looking weekly bar


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## galumay (18 August 2018)

Mr Bear said:


> Hi Galumay,
> 
> What discount to your IV would you need to buy?




Sorry Mr Bear, I missed your question at the time. I dont have a hard and fast rule, it depends a bit on my strength of conviction, in some cases I will even buy at around my range of IV if I think the business is good enough. 

PME is probably a business I would pay up around IV range, but it is multiples above that!


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## Cam019 (25 December 2018)

PME, one of interest.

I like the look of this for a swing. Entry would be 11.17 with an iSL of 10.82. Again, current market conditions tell me I should be selling into old highs as the likely hood of an extended move through overhead resistance is low. Target here would be 12.22. This gives us reward/risk of 3:1.

Check out the volume from about the end of November. The majority of up day volume outweighs down day volume. This is exactly what we want to see. Low volume, narrower range bars on the pullbacks closing off the low of the day. A good sign.

Happy hunting.


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## kenny (22 February 2019)

Chart still backs your thesis, Cam019. Results were solid too;


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## galumay (22 February 2019)

I wish I had bought into this business long ago, its one of those companies that seems to be always more expensive than what is worth, so there is never another opportunity to buy at a discount to value. It is certainly priced for perfection and exponential growth. Good luck to the holders who believed the story from the beginning!


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## Zaxon (22 February 2019)

galumay said:


> I wish I had bought into this business long ago. Good luck to the holders who believed the story from the beginning!




This is my current return in PME:





I've only held it for a few months.  It has retractions periodically, if you specifically need that.


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## galumay (22 February 2019)

Well done! The retractions have never got it even close to a discount to value for me, unfortunately!


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## Cam019 (24 March 2019)

*Disclosure: Held*


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## Trav. (23 December 2019)

I thought that I would show a trade that is not doing well for me at the moment and the differences between adding a simple entry criteria that would have prevented this trade from coming up in my scan.

So the original scan used only 1 time frame which indicated upward trend and then a suitable pullback entry. This appeared to be going well but unfortunately an announcement was released which tipped the trade the wrong way and is slowly recovering but this ties up funds for other trades and probably should had been cut earlier in the trade reversal.

New refined version of the system ensures trend is confirmed in 2 time frames which I find logical in a trend following system and this trade would not have been entered.

So a little aha moment for me to share with you.


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## Trav. (30 December 2019)

nice announcement out this morning should see a much needed kick in the SP


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## Trav. (9 January 2020)

This trade continues to frustrate me as it goes Up and Down Like A Whore's Drawers.

big day today so hopefully this continues and I can make it to the break even point.


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## rnr (10 January 2020)

Hey Trav, if $24.70 gets taken out in the next couple of bars then we may be looking at a potential wave 3 ending at around $27.95+!
Only time will tell.


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## Trav. (10 January 2020)

rnr said:


> View attachment 99585
> 
> Hey Trav, if $24.70 gets taken out in the next couple of bars then we may be looking at a potential wave 3 ending at around $27.95+!
> Only time will tell.



That would be nice, especially the + part


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## Trav. (7 February 2020)

Well I am still hanging in there with PME, it hit a high of $27 today, only to retrace back to close @ $26.22.

Holding since November and making huge gains 3.21%  but will continue to hold as I am liking the setup here. If it can break the $27 resistance the ascending triangle pattern will be confirmed.

Target would be $32 using a measure rule from http://thepatternsite.com/at.html but I will be running with a trail stop based on ATR. A few if's and but's here so we will have to watch and see how this trade pans out.


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## zaxacel1975 (11 February 2020)

Hope you are still holding, nice little bump up today.


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## Trav. (11 February 2020)

Yes still holding, looking good today and hopefully holds $27 and break out will be confirmed in my eyes at least.


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## Trav. (11 February 2020)

Nice close just above the $27, so happy with that


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## zaxacel1975 (12 February 2020)

Will probably get on this tomorrow, looks to have turned a corner. Reports on Thursday I believe, which should tell the story for a nice uptrend like last year, or if it needs to spend some more time going sideways.


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## Trav. (13 February 2020)

This is when you wonder why you didnt buy more shares 

Up 10% after interim results released.


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## zaxacel1975 (13 February 2020)

Almost forgot to buy these yesterday, but remembered towards the end of the day and got in @ $27.24.
Glad I did.


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## zaxacel1975 (13 February 2020)

maybe spoke too soon... now down almost 2%


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## Trav. (13 February 2020)

Yes just checked closing price and pretty disappointing. Maybe a few people taking profits?

Numbers looked good at a quick glance so hopefully we resume our positive run tomorrow.


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## zaxacel1975 (13 February 2020)

Weird old day for PME, I also thought the results were good.
Up almost 10% after open, then down 10% before lunch, only to come back and close just over 3% down.
Glad I also hold BRG and IEL so this didn’t ruin my day.


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## Trav. (13 February 2020)

I think that a lot of stop losses got taken out. Hence that crazy drop

So maybe someone playing games.


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## bigdog (17 February 2020)

Trav. said:


> I think that a lot of stop losses got taken out. Hence that crazy drop
> 
> So maybe someone playing games.




Closing price Thursday was $26.42 and today low of $23.76

Thursday high of $30.37 and down to today $6.61 (-27% since Thursday)

Reported ASX Thursday 13/02/2020 9:24:41 AM   Half Year Accounts

Pro Medicus continued its positive form and delivered further strong revenue and profit growth in the first half of FY 2020.

For the six months ended December 31, the company posted a 15.7% increase in revenue from operations to $29.3 million.

On an underlying basis, which excludes a one-off capital sale to the German Government made in the first half of FY 2019, revenue would have grown 39.1% over the prior corresponding period.

This was driven by solid growth in all key jurisdictions. North American revenue grew 43.1%, European revenue jumped 52%, and Australian revenue lifted 21.5% during the half.

The company’s profit growth grew quicker than its revenue. Underlying profit before tax jumped 45.3% to $14.8 million and net profit after tax rose 32.7% to $12.1 million.






677


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## Dona Ferentes (22 June 2020)

Another theme that Natalie Tam expects should support listed companies in the health sector. "The other big ... long-term impact of COVID-19 that we expect to see is a greater investment in healthcare globally," she says. "If you look at it globally, our capacity to deal with the crisis was very low and that has amplified the consequences of the crisis. And so we do think that there are going to be additional resources permanently devoted to the healthcare sector."

Pro Medicus is a company that draws on structural growth drivers for technology as well as health, Tam says.

It's a position Aberdeen aggressively built on following its scenario analysis of the company's income statement and balance sheet early in the crisis.


> "Pro Medicus actually sits in the healthcare sector but it's probably more a medical software company – it has a pure SaaS product that is used in hospitals and for radiology clinics."




Aberdeen was comfortable that the company had the earnings resilience and balance sheet to easily carry through a worst case scenario, so it started buying.


> "Having done the homework when the market was in capitulation mode, we had the conviction to aggressively accumulate the stock, which is what we did."




(.... _another fund manager talking about their wins, as they usually do <while ignoring the losers, because deviation from index is minimal, therefore they do have 'em>)_


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## galumay (22 June 2020)

The only bit I agree with is your contribution @Dona Ferentes !!


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## Dona Ferentes (20 August 2020)

COVID-19 – Impact
• All elective imaging deferred late in March/early April
• Some regions affected more than others
• Worst affected – volumes declined by up to 75% 
• 2nd half April onwards – steady recovery in image volumes
• Most clients now at “near normal volumes” > 90% - some 100%
• Deferred examinations still need to be done - expectation of catchup period


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## Dona Ferentes (24 August 2020)

"Yesterday, Pro Medicus shares dropped as much as 7.5% on delivering its results for FY 2020. While the record profit of $23 million was an increase of about 20% on the prior year, the second half profit was actually down on the immediately preceding half. Happily, free cash flow was very strong at $23.7m and the company finished the year with cash reserves of $43.4 million."





"The main reason for the reduced half-on-half profit was the impact of the coronavirus pandemic, which the company estimated reduced second half profit by $1.2m. Without that impact, the second half would have been mildly better than the first half, but not a lot better.

"However, there were a number of drivers of lower profit growth in FY 2020 compared to FY 2019. The biggest single reason was that the company received a $3m point in time payment for a German installation in FY 2019, and this was not repeated in FY 2020.

"Comparing the first and second halves, European and Australian revenue was largely flat, half-on-half, while the biggest hit was felt in the USA, where sales actually dropped for the first time since 2018.... "

https://arichlife.com.au/pro-medicus-asx-pme-full-year-fy-2020-results/


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## divs4ever (16 February 2022)

Company Announcement
Pro Medicus Limited half-year results
Wednesday 16 February 2022
HIGHLIGHTS
▪ Revenue from ordinary activities $44.33m – up 40.3%
▪ Underlying profit before tax $28.8m – up 53.5%
▪ Net profit $20.68m – up 52.7%
▪ Cash reserves $76.17m – up $14.91m
▪ Company remains debt-free
▪ Fully franked interim dividend 10c per share – up 42.9%
Leading health imaging company Pro Medicus Limited [ASX: PME] today announced a halfyear net profit of $20.68 million for the six months to the end of December 2021, 52.7% higher
than for the previous corresponding period.
Revenue from ordinary activities increased by 40.3% to $44.33 million.
The company's cash reserves at 31 December 2021 were $76.17 million, up $14.91 million.
Pro Medicus announced a final fully franked interim dividend of 10c per share. The company
remains debt-free.
During the six months Pro Medicus announced the following key contract wins:
▪ Novant Health (A$40 million, 7-year contract), a community-based integrated delivery
network that spans three US states.
▪ Contract renewal with Allegheny Health (A$12 million, 5-year), a health network in
Pittsburgh, Pennsylvania.
▪ Further extension of German government hospital to a fourth site.
The company continued to make significant progress with all key implementations being on or
ahead of schedule, including Intermountain and UCSF.
Pro Medicus CEO Dr Sam Hupert said the result represented the strongest half-year revenue
and profit results in Pro Medicus’ history, powered by contract wins and renewals in the US
and an extension of a European contract to cover new regions.
“We thought it was a good result with all our key financial indicators heading in the right
direction, not just revenue growth but also profit growth, margin expansion and retained
earnings,” he said. “There were two key drivers behind the result. Firstly, the jump in
Pro Medicus Limited
450 Swan Street Richmond
Victoria 3121 Australia
T +61 3 9429 8800
F +61 3 9429 9455
www.promed.com.au
transaction revenue from our US contracts, as several large implementations came on-stream
towards the second half of FY21, such as Northwestern, NYU and Medstar. Secondly, the
extension of the German government contract to a fourth hospital. Renewals of contracts
should also not be underestimated; they are like a whole new contract.”
Dr Hupert said the company recorded growth in revenue in all key jurisdictions: USA, Europe
and Australia. “Our pipeline remains strong with a good spread of opportunities in different
markets. Many are Cloud-based – a trend gathering significant momentum – and many are
interested in more than one of our Visage solutions.”
Dr Hupert said the company’s operations had not been unduly affected by Covid-19.
“Exam volumes in North America were strong, and in many cases greater than pre-Covid
levels. The only region that was marginally affected was Australia, where the majority of our
revenue is not exam-based. In terms of sales capability and implementations these were not
impacted. During the half we did a mix of remote, onsite and hybrid remote/onsite
implementations.”
“Our pipeline remains strong with very healthy representations across academic, nonacademic/IDN, corporate and private market opportunities. Many are for more than one of our
products and increasingly we are seeing opportunities that have Cloud-first policy which
favours us as we believe we are the only company to have a proven, fully Cloud-native
offering that operates at scale.”
** Pro Medicus Ltd will host a webcast conference call on Wednesday 16 February at 11am
(AEDT) to discuss the results.
Authorised by the Board of Pro Medicus Limited.


------------------------------------------------------------------------------------------------------------------------------------------------------

DYOR

i hold PME ( 'free-carried' ) ( bought at 16.5 cents )

i guess if i regret selling down a winner ( sold down 95% of the original purchase ) this will be the one

but golly gee who would have picked this in 2011 to even break $10

 looks like a div of more than 100% this year for me ( on my investment )

 but is it really a $50 share ?? 

crazy times


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## Dona Ferentes (16 February 2022)

Pro Medicus has reported a strong jump in profits during the first half of the 2022 financial year, buoyed by a number of key contract wins.

The company’s revenue rose 40.3 per cent to $44.3 million while net profit climbed 52.7 per cent to $20.7 million.


> “We thought it was a good result with all our key financial indicators heading in the right direction, not just revenue growth but also profit growth, margin expansion and retained earnings,” said Pro Medicus chief executive Sam Hupert.





> “There were two key drivers behind the result. Firstly, the jump in transaction revenue from our US contracts, as several large implementations came on-stream towards the second half of FY21, such as Northwestern, NYU and Medstar. Secondly, the extension of the German government contract to a fourth hospital. Renewals of contracts should also not be underestimated; they are like a whole new contract.”




Pro Medicus declared an interim dividend of 10¢, a record for the company.

..............._  probably more realistically priced in the $40's than the low $60s before the sell-off in January. And that last statement has got to be pretty loopy: __"Renewals of contracts should also not be underestimated; they are like a whole new contract.”_


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## divs4ever (16 February 2022)

bought as a cheeky little  div. payer  ... who knew (  i sure as heck didn't )

 but i suppose there is always 'key person risk ' 

you know  bring in some flashy CEO , when the current guy is doing fine


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## divs4ever (16 February 2022)

on the flip-side  had i not sold down   , the holding would be  currently 25% to 30%  of my portfolio  

 would that make you more or less comfortable  ??


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## finicky (12 March 2022)

Horrorscope speculations:
Dont like the chart. Some pretty strong volume has come in over the last two months and a few weekly long upper wicks made. lf you take the October trough at $50 as significant, which I do, then the break of that has brought a target of $35-30 into speculative contention. Trouble is, that would break the 'neckline' of a large irregular head and shoulders at $40. So I'm seeing $40 as the critical level and a speculative target if that doesn't hold of the Wuhan plague low - i.e $15. 
Why that could happen fundamentally I don't have any idea. Maybe a general crash? The fundamentals as summarised on CommSec look stunningly attractive but the stock is ridiculously overpriced imo. Like XRO, which also has a dubious looking chart.

Weekly


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## divs4ever (13 March 2022)

finicky said:


> Horrorscope speculations:
> Dont like the chart. Some pretty strong volume has come in over the last two months and a few weekly long upper wicks made. lf you take the October trough at $50 as significant, which I do, then the break of that has brought a target of $35-30 into speculative contention. Trouble is, that would break the 'neckline' of a large irregular head and shoulders at $40. So I'm seeing $40 as the critical level and a speculative target if that doesn't hold of the Wuhan plague low - i.e $15.
> Why that could happen fundamentally I don't have any idea. Maybe a general crash? The fundamentals as summarised on CommSec look stunningly attractive but the stock is ridiculously overpriced imo. Like XRO, which also has a dubious looking chart.
> 
> ...



 ridiculously over-priced yes i agree  , partly it was boosted  by being included in the XKO ( and i think the XJO ) in what was already a tightly held share 

 so that 'volume ' raises an eyebrow ... is somebody shorting  a tightly held stock ( check out the management shareholding )


PMEPRO MEDICUS LIMITED ORDINARY
Change







Balance DateDividend TypeCents per shareCcyFranked %Ex-Dividend DateBooks Close DatePay Date31/12/2021Interim10.000AUD100.0003/03/202204/03/202225/03/202230/06/2021Final8.000AUD100.0009/09/202110/09/202101/10/202131/12/2020Interim7.000AUD100.0004/03/202105/03/202119/03/202130/06/2020Final6.000AUD100.0010/09/202011/09/202002/10/202031/12/2019Interim6.000AUD100.0005/03/202006/03/202020/03/202030/06/2019Final4.500AUD100.0012/09/201913/09/201904/10/201930/06/2019Special2.500AUD100.0012/03/201913/03/201917/05/201931/12/2018Interim3.500AUD100.0007/03/201908/03/201922/03/201930/06/2018Final3.500AUD100.0006/09/201807/09/201827/09/201831/12/2017Interim2.500AUD100.0008/03/201809/03/201823/03/2018

 now my cost price ( not  counting the immense profit already taken ) is 16.5 cents a share  ,  so  when i am looking at roughly 100% return PER YEAR ( plus franking )  on investment  i am much more like to hold this a while longer 

i assume it is mainly instos and fund managers that are trading this share ( on behalf of clients )

 good luck if you dare swim ( trade ) in these waters 

 also i have seen speculation of 'key person risk ' here   one would be wise to watch  for management selling down ( because this has several juicy contracts  that a rival might be tempted into a hostile take-over )

 please take care


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## finicky (12 May 2022)

PME chart has deteriorated and is now teetering above the $40 level. Chart still looks like an avoid to me.
The rally from Feb was choppy and weak volume, while the subsequent fall has been rapid and higher volume  - now back to the critical $40.
I'm still clinging to the hope of a 'melt-up' in the months ahead where I can add to cash and subsequently, in a big crash, buy a few PME, XRO and other highly prestigious stocks which would otherwise not deign to have me as a shareholder.

Daily


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## divs4ever (12 May 2022)

i still don't understand how this share is more than $1 ( i bought at 16.5 cents ) sure it pays divs. is fairly tightly held  , etc etc 

 but a $40 or $60 share  look at the actual income , sure the divs are juicy at MY entry price 

 i suppose it makes a profit and pays regular divs and that makes it better than the average WAAAX ( or whatever it is now ) stock 

 DYOR


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## Dona Ferentes (13 May 2022)

_part of an article that appeared in Stockhead recently:_

With a market cap just under $4.7 billion, Pro Medicus is the fourth biggest ASX-listed life sciences play behind the ‘big three’ of CSL, Cochlear and Resmed.

Co-founder and CEO Dr Sam Hupert says the last 18 months have been the busiest ever for the company, “not just in terms of sales, but implementation”.

In the equal biggest deal to date, last October, the company signed up Novant Health for a $40 million contract over seven years. The transaction expands the company’s presence away from the traditional ‘sandstone’ colleges and into the non-academic sector.

In early April, the company signed up North Virginian not-for-profit Inova Health in a $32 million deal over eight years. Renewed contracts include Europe’s Allegheny Healthy, New York University’s health network, the Baltimore and Washington-based Medstar and the Utah-based Intermountain.


> “_The market is very active at the moment, there’s an increased cadence with RFPs (requests for proposals),” _Dr Hupert says_. “A lot of them require the option to work in the [internet] cloud or are mandating the cloud, which favors us.”_




Dr Hupert estimates that Pro Medicus has the lion’s share of the traditional academic market, having signed up nine of the top 20 US institutions (‘top’ is determined not just by size, but perceived quality).


> “_We have more than double [the market share] of our nearest competitor,”_ he says_. “Given we have only been in that market for six or seven years, no-one has been able to do that.”_




The company is also making inroads into what our American friends call IDNs, or integrated delivery networks. These are non-academic, non-teaching hospital chains, generally not-for-profit. Intermountain and Novant Health fit this category.

Dr Hupert notes that about 500 million tests are done in the US annually, which come to think of it is 1.5 for every man, woman and child. He estimates Pro Medicus has around six percent of that broader market.

Traditionally, Dr Hupert says, the company’s competition came from the equipment vendors such as GE Health, Siemens and Philips. When camera film became redundant, the likes of Agfa, Fujifilm and Carestream also sashayed into the sector.

Dr Hupert claims these providers are losing market share at the expense of up-and-coming independent providers steeped in the digital way of doing things. Many of these providers are being subsumed by private equity ‘roll up’ plays.

The internet cloud allows Pro Medicus to sell to a Mayo or a five-person radiology clinic in Airport West.


> “_Cloud has made a huge difference. If a five-person practice had to buy its own hardware and organise a data centre and hire a data manager, it would be too much_,” he says. “_The beauty of the cloud is that it matches our billing model by which you only pay for what you use._”




more at :  https://stockhead-com-au.cdn.ampproject.org/v/s/stockhead.com.au/health/dr-borehams-crucible-picture-this-a-growth-stock-that-makes-money-pays-divvies-and-accrues-cash/?amp=&amp_gsa=1&amp_js_v=a9&usqp=mq331AQIKAGwASCAAgM=#amp_tf=From %1$s&aoh=16520486542569&csi=0&referrer=https://www.google.com&ampshare=https://stockhead.com.au/health/dr-borehams-crucible-picture-this-a-growth-stock-that-makes-money-pays-divvies-and-accrues-cash/


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## Dona Ferentes (27 May 2022)

Growth stocks have been punished, especially at the smaller and less liquid end of the market. Think of sectors like healthcare, discretionary retail and tech.

But what does that look like in terms of numbers? Glad you asked, as our friends at Deep Data Analytics have recently crunched the numbers and it isn’t pretty.


> The worst 10 performers in the small cap healthcare sector are down ~32% on average, in discretionary retail the fall is ~49% and things get ugly in tech where the worst 10 are down ~54% on average.




No doubt many Livewire readers will have had some high-growth names on the wishlist, but couldn’t stomach the valuations. Yes, we're talking about those growth darlings that have been punished in the selling of late. It could be a bit uncomfortable, but you never know - We might uncover a few opportunities. 

Here to help me talk about whether there are opportunities or not, I've got Josh Clark from QVG Capital and Gary Rollo from Montgomery Investment Management. Brace yourself, gentlemen. It's going to be a bit of a rough ride here. We're talking about discounted growth stocks and we've all had that watch list. Always told those stocks are too expensive to buy.  *Buy, hold, or sell* ?

*James Marlay: *Well, we might be onto another sinner Pro Medicus. I've never had anyone tell me they think this stock looks cheap. It's down 40% year to date. Is it cheap enough now? Buy, hold, or a sell?

*Gary Rollo (SELL): *_Not cheap enough. It's a sell. Look Pro Medicus is the inverse of what we just talked about with IDP. Great business, but the opportunity they are prosecuting just isn't big enough to give you a long enough runway to amortise that valuation envelope you're taking on. Don't take that opportunity. It's a sell._

*James Marlay:* It's PE gone from three digits to two digits, Josh. Can you break my run of no-one telling me Pro Medicus is cheap enough? Buy, hold or sell?

*Josh Clark (SELL): *_Pro Medicus is on something like a 78 times pre-tax earnings multiple from here, and it's just too hard to wrap your head around how you can get enough growth out of that business to justify that multiple. I mean, there's other businesses - notably technology businesses - out there that trade on those kinds of eye-watering multiples, but then I don't think they're necessarily a fair comparison because there's a lot of businesses that have been reinvesting through the profit and loss statement and earning 0% margin. Pro Medicus is already I think it's around 65% margin. So their world-class margin is already a very profitable business. It's going to be quite hard for them to grow their earnings much faster than revenue from here. I don't think you can get there on the valuation, so a sell._


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## finicky (14 June 2022)

Pro Medicus broke to the lowest in a long time and with strengthened volume. As discussed, still playing perilously at a level of long term support of around $40 which is also the neckline of a one and a half years head and shoulders pattern by my completely ignorable interpretation. I think all would agree that it's overvalued, the more so in this bearish environment and there must be a lot of jumpy feeling holders.


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## divs4ever (15 June 2022)

a tightly held stock that has found itself in the XJO , i suspect traders  using 'borrowed stock ' ( in the custody of fund managers ) are a big part of the action here ( much like when BKL was in a similar situation )

 the valuations are crazy BUT it does pay divs.  and that is what results  when 'index funds ' have to hold a tightly held stock  , i am in no rush to sell any more of my holding  , so you were either in early ( before 2013 )  or wondering what all the fuss is about .

 keep an eye out for it to be removed  from the XJO ( as a result of persistent short-selling )


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## finicky (17 June 2022)

I'd claim that PME today confirmed its break of the $40 level which I consider significant but the hammer candle makes me cautious. Let's see what next week brings.

Not Held

Daily


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## divs4ever (18 August 2022)

Pro Medicus Limited full-year results
18 August 2022
HIGHLIGHTS
▪ Revenue from ordinary activities $93.5m – up 37.7%
▪ Underlying profit before tax $62.4m – up 46.8%
▪ Net profit $44.4m – up 44.1%
▪ Cash and other financial assets $90.6m – up $28.8m
▪ Company remains debt-free
▪ Fully-franked final dividend 12c per share
Leading health imaging company Pro Medicus Limited [ASX: PME] today announced a fullyear net profit of $44.4 million for the year to the end of June 2022, 44.1% higher than for the
previous corresponding period.
Revenue from ordinary activities increased by 37.7% to $93.5 million.
The company's cash and other financial assets at June 30 2022 were $90.6 million, up $28.8
million, an increase of 46.5%.
Pro Medicus announced a fully-franked final dividend of 12c per share, making the full year
dividend 22c fully-franked, an increase of 47%. The company remains debt-free.
During the year Pro Medicus announced the following key contract wins:
▪ A $40M, 7-year contract with Novant Health, Inc, a community-based Integrated
Delivery Network (IDN) headquartered in North Carolina, USA, spanning three states,
including 15 medical centres and hundreds of outpatient facilities and clinics.
▪ A $32M, 8-year contract with Inova Health System, the leading not-for-profit healthcare
provider in Northern Virginia, USA. Inova Health’s 20,000+ team members service more
than two million patient visits per year.
▪ A $28M, 7-year contract with Allina Health, a not-for-profit healthcare system based in
Minneapolis, USA, which has 28,000 employees and 6,000 associated and employed
physicians and operates 11 hospitals and more than 90 clinics throughout Minnesota and
Wisconsin.
Pro Medicus Limited
450 Swan Street Richmond
Victoria 3121 Australia
T +61 3 9429 8800
F +61 3 9429 9455
www.promed.com.au
▪ Fourth extension of the German Government contract, Visage 7.0 being deployed to a
large government hospital in the Hamburg region.
▪ Two key contract renewals with a combined value of A$47M. Sutter Health, a large
IDN based in Sacramento, California signed for a further seven years, and Wellspan
Health, based in Pennsylvania, for a further five years. Both deals were transaction-based
with committed minimums and were negotiated at a higher per transaction cost than their
original contracts.
Pro Medicus CEO Dr Sam Hupert said the result represented the best revenue and profit
performance in Pro Medicus’ history. Margins improved from 63% to 67%, and cash and other
assets rose by $28.8 million to $90.6 million despite increased spending on research and
development, a share buy-back and increased dividend payouts.
‘FY22 year was another year where all our key financial metrics headed in the right direction
and we continued to make significant progress with key implementations,’ Dr Hupert said. ‘All
three jurisdictions did very well. North America – our biggest market – was the key contributor,
with a 65% jump in transaction revenue coupled with three new material contracts and two
contract renewals. We were also pleased with the fourth extension of the German
Government contract which was material for the European region. In Australia we continued
to see incremental growth, which was pleasing.”
Dr Hupert said the steep jump in transaction revenue was driven by large implementations
including Northwestern, NYU Langone and Medstar which contributed a full 12 months of
transactions and Intermountain Healthcare which contributed 8 months.
“Revenue from recent contract wins in Novant Health, Inova Health and Allina Health will
commence in the FY23 financial year, so these three sizeable contracts are still ahead of us
and will build on the solid base we formed in FY22.’
Dr Hupert said renewals of contracts – like Sutter Health and Wellspan Health – should also
not be underestimated. ‘Our aim is to retain 100% of our client base and even though it is still
early days, we have been successful in achieving this so far,’ he said. “The fact that our
clients are renewing for five years and in some cases longer we feel is a powerful
endorsement of our offering and the leadership position of our technology.”
In August 2021, the company established its R&D centre in New York and is making good
progress with its research collaborations with NYU as well as other research partners Yale
and Mayo.
Dr Hupert said Pro Medicus’ pipeline remains strong, with a good spread of opportunities in
different market segments. ‘As we have previously mentioned, we are seeing interest from
multiple market segments, including Tier-1 academic medical centres, large and mid-sized
Pro Medicus Limited
450 Swan Street Richmond
Victoria 3121 Australia
T +61 3 9429 8800
F +61 3 9429 9455
www.promed.com.au
IDNs as well as renewed interest from the for-profit sector, which was the sector hardest hit
during COVID.”
“We also see the dynamic of Cloud as a major theme in virtually all our pipeline opportunities,
as well as a material number of opportunities considering multiple Visage products. These are
the trends that benefit us and importantly, ones we think will continue.’
** Pro Medicus Ltd will host a webcast conference call on Thursday 18 August at 11am
(AEST) to discuss the results.
Authorised by the Board of Pro Medicus Limited.

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DYOR

i hold PME ( 'free-carried' ) ( bought at 16.5 cents )

i guess if i regret selling down a winner ( sold down 95% of the original purchase ) this will be the one

but golly gee who would have picked this in 2011 to even break $10

22 cents a year ( plus franking ) on a share bought for 16.5 cents .. some tech shares did do very well ( just not the widely predicted ones )


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