PME - Pro Medicus

PME looks like it's another stock that's been sold down irrationally (oversold), but I'm not going to argue with the market and buy some yet. I'll just add it to the watch list and wait for a rally to start.

peter2 said:

PME looks like it's another stock that's been sold down irrationally (oversold), but I'm not going to argue with the market and buy some yet. I'll just add it to the watch list and wait for a rally to start.

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i would ague PME is still irrationally over-valued , sure it has solid growth potential , but using the last two divs. as a rough guide ( 25 cents in total ) surely even $50 is asking a bit much for the late-comer investor


( i bought in , in 2011 @ 16.5 cents ... and it was paying divs. right back then )

2011 it was fair risk/reward value say sub 25 cents but now that is a heck of a lot of future growth you are paying for ( and if the fundies are forced out if this is booted for the XJO who will buy and at what price )

Yes, I was going to say, PME is neither "sold down irrationally" nor "oversold" IMO.

Doesn't mean its not going to continue to go up of course, markets can stay irrational etc...

I am reminded of this -


PME is trading at over 60x revenues, I don't think its at risk of being cheap anytime soon!!

galumay said:

PME is trading at over 60x revenues, I don't think its at risk of being cheap anytime soon!!

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it keeps on growing the customer base , but will not be holding my breath waiting for it to be cheap once again

a potential wild-card maybe be a take-over offer , some folks are offering crazy prices

Double top reversal or cup and handle continuation? Given the preposterous overvaluation and the monthly momentum negative divergence I'll pick a double top.

Not Held

MONTHLY

some commentary:
.
A big winner from Tuesday’s results crop was imaging software group Pro Medicus, which delivered 36 per cent profit growth and saw its shares pop 4.5 per cent, taking full-year gains to 33 per cent.

We’re obviously hearing lots about the potential impact of artificial intelligence on jobs, but I was struck by the take of chief executive Sam Hupert, who said there’d been a big drop off in the number of people applying for radiology training five years ago because there were concerns AI would make lots of radiologists redundant. But those redundancies never came, and the reduced pool of radiologists is now dealing with an ever-increasing pile of images to review, leading to burnout.

Pro Medicus says its Visage technology, which allows radiologists to look at images from anywhere, is a solution. “A leading radiologist from one of our tier one academic customers called Visage an ‘anti-radiologist burnout tool’ which I think is a very apt description,” Hupert says.

It's one of those businesses I wish I had understood when it was fairly priced, now all I can do is watch from the sidelines!

galumay said:

PME is trading at over 60x revenues, I don't think its at risk of being cheap anytime soon!!

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OR given today's disclosure of a div. of 17 cents for the previous six months more than 100% return on my investment capital in just six months

i guess the fairy tale will end eventually but the founders Sam Hubert and Barry Hall ( each hold 26% ) have had an amazing ride

given the price jumps of several global 'tech' stocks at nose-bleed valuations ... at least this one pays divs

there are times i regret selling more than 90% of the holding ... but some profit i have taken ( whether wisely or not )

galumay said:

It's one of those businesses I wish I had understood when it was fairly priced, now all I can do is watch from the sidelines!

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i bought it as a small software company that actually paid divs and made a profit , you won't see many of them trading under 20 cents ( back then)

i am very averse to bio-tech companies that insert treatments into humans/animals , so much can go wrong , approvals , long term effects , etc etc. PME to me was a sweet compromise between a healthcare stock and a tech stock

( i just never dreamed it would go well above $1 )

Looks a stronger chance to keep moving ahead on its own massive inertia and get even more over priced.
This month's candlestick when it completes will be interesting - can it close on a new monthly high? That would make the last 2 years look like just a consolidation within a secular bull trend to me. I inwardly fight this perception - this is when market valuation looks just weird to me but I've felt similarly about CSL and XRO. It's like "Don't Fight the Fed". Guess I'm not destined to get onboard any of this sort of pay-way-ahead-in-the-future juggernauts.

Not Held

finicky said:

this is when market valuation looks just weird to me but I've felt similarly about CSL and XRO.

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i absolutely agree ,

but folks are desperate to find earnings and capital growth , add in PME is 52% held by the two exec. directors lob it into the ASX 200 all those damned ETFs ( i had a similar ride on BKL ) and maybe it is just a symptom of the current markets ( and not just the ASX ) dumbass computers just programmed to buy/sell

@divs4ever the next time you get an early idea like this one I would appreciate you heavily ramping it.

finicky said:

@divs4ever the next time you get an early idea like this one I would appreciate you heavily ramping it.

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i was expecting it to be still a sub $1 stock ( 10 years after i bought it )

in fact MQG is the only stock i predicted to triple in price ( my av. is $26.76 ) in 10 years

i am terrible at predictions but mega-lucky .. so when something is making crazy gains i normally take some cash off the table

i am much better as an opportunist than an analyst

i just look for cheap stocks at the time that look like they can pay a div. most years

commsec's old scanner was great i could put in a div. yield figure and get it to screen all the sub $1 stocks and start the second wave of scans and research from there ( you would be shocked to see which stocks were sub $1 in 2011 and 2012 ) stocks like HSN@ 83 cents , DTL 88.5 cents JYC @ 36 cents , BSL ( since consolidated 6 into one )

PS add in NST bought @ 87 cents early 2013 ( but not every pick is a winner there are my fair share of duds as well )

Same, but the duds are offset by not trend following, having true long termism, owning businesses that are low debt, profitable and have sensible management with good capital allocation. To paraphrase Munger, you don't have to be very clever, you just have to avoid doing really stupid things as much as possible. Your point about taking a bit off the table when things go crazy is a good one too.

PME signs AUD$140M, 10-year contract with Baylor Scott & White Health 26th September 2023

HIGHLIGHTS • PME signs AUD $140M, 10-year deal with Baylor Scott & White Health (“BSWH”)
• Visage to replace legacy PACS and vendor neutral archive throughout the BSWH enterprise
• Contract is for “full stack” - Visage 7 Viewer, Visage 7 Open Archive and Visage 7 Workflow
• Visage 7 platform to be implemented in the cloud
• Continues PME’s rapid expansion into North American integrated delivery networks (IDN) and academic medical centers
• Transaction-based model with potential upside
Leading health imaging company Pro Medicus Limited [ASX: PME] today announced its whollyowned U.S. subsidiary, Visage Imaging, Inc., has signed a $140M, 10-year contract with Baylor Scott & White Health (BSWH), the largest not-for-profit healthcare system in Texas and one of the largest in the United States. Based on a transactional licensing model, the contract will see the company’s cloud-engineered Visage 7 Enterprise Imaging Platform (‘Visage 7’), including Visage 7 Open Archive and Visage 7 Workflow modules, implemented throughout BSWH providing a unified diagnostic imaging platform.
Visage will complete the migration from BSWH’s multiple legacy Radiology and Cardiology PACS archives, and vendor neutral archive, to Visage 7 Open Archive. Visage 7 will also provide enterprise distribution of images integrated to BSWH’s electronic health record (EHR).

Pro Medicus Limited 450 Swan Street Richmond Victoria 3121 Australia T +61 3 9429 8800 F +61 3 9429 9455 www.promed.com.au Pro Medicus Limited ABN 25 006 194 752 Planning for the rollout is to commence immediately and will be based on Visage’s proven cloudbased implementation process, with multi-phased go-lives targeted to begin in Q1 of the 2024 calendar year.
“Baylor Scott & White Health joins our impressive list of IDN and Tier 1 academic clients, and represents our first major client in Texas,“ said Dr Sam Hupert, Pro Medicus CEO. “The scale and scope of our initiative with Baylor Scott & White Health is noteworthy and will include nearly 500 Radiologists who will be exposed to the benefits of Visage 7.”
BSWH joins the increasing list of consecutive Visage 7 clients to opt for a fully cloud-engineered solution, a trend that has now become the standard in the North American healthcare IT market. “Our pipeline remains strong and spans all market segments.
As has been the case with many of our recent contracts, this deal is for our “full-stack” comprising all three Visage products namely viewer, workflow and archive, a trend we see continuing.”

Authorised by the Board of Pro Medicus Limited.

i hold PME ( 'free-carried' )

is currently up more than 9% today

the joy of holding illiquid stocks ( one big patch of green amid bloodstains everywhere .. and a positive portfolio performance for the day , so far )

The insanity continues, a new contract for just $140m over 10 years, and the market cap jumps $750m in a day! A total disconnect between price and value.

Well done @divs4ever, wish I had bought in when you did.

just defies investment rationale ( at current values ) but then this isn't unique in tech-related stocks

what is rare is the fairly steady profit it has made over the last 10 years

but let's be clear i did NOT see this coming all i was after was a sub $1 div. payer

PME signs $20M, 8-year contract with Oregon Health & Science University

13th November 2023 HIGHLIGHTS • Visage to replace legacy PACS and vendor neutral archive (VNA) throughout the Oregon Health & Science (OHSU) enterprise

• Contract is for “full stack” - Visage 7 Viewer, Visage 7 Open Archive and Visage 7 Workflow
• Visage 7 platform to be implemented in the cloud • Continues PME’s rapid expansion into North American academic medical centers
• Transaction-based model with potential upside Leading health imaging company Pro Medicus Limited [ASX: PME] today announced its whollyowned U.S. subsidiary, Visage Imaging, Inc., has signed a AUD $20M, 8-year contract with Oregon Health & Science University (OHSU), the preeminent academic medical center in the state of Oregon.
OHSU includes OHSU Hospital and OHSU Doernbecher Children’s Hospital, comprising a total of 576 licensed beds. OHSU also includes a system of clinics across Oregon and southwest Washington state, employing nearly 20,000 staff.
Based on a transactional licensing model, the contract will see the company’s cloud-engineered Visage 7, including Visage 7 Open Archive and Visage 7 Workflow modules, implemented throughout OHSU providing a unified diagnostic imaging platform.
Visage 7 will also provide enterprise distribution of images integrated to OHSU’s electronic health record (EHR). Planning for the rollout is to commence immediately and will be based on Visage’s proven cloudbased implementation process, with go-live targeted Q4 of the 2024 calendar year.
“OHSU adds to our rapidly growing list of clients in the Pacific Northwest,“ said Dr Sam Hupert, Pro Medicus CEO.
“They also join a long list of Visage 7 clients to opt for a fully cloud-engineered solution, which, as a result of our CloudPACS strategy, is becoming the standard in the North American healthcare IT market.
Dr Hupert continued, “Our pipeline remains strong and spans all market segments.
As has been the case with many of our recent contracts, this deal is for our “full-stack” comprising all three Visage products namely viewer, workflow and archive, a trend we see continuing.”


Authorised by the Board of Pro Medicus Limited.

i hold PME ( 'free-carried' )

let's see what irrational market move this triggers

No doubt a contract worth just $2.5m per year in revenue will cause the market cap to jump by at least $100m?!