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"Share Acquisition is expected to be $0.203 per share of Common Stock."
Probably a combo of both.
Someone has been accumulating this week, been buying first thing in the morning. Makes me wonder if they knew/know something. Or, simply could have found an undervalued stock;)
That's the plan, according to the filing. Think they are willing to sell to him for .07 with the stock at .20?
lol
Tomorrow should be more greenage. :)
Maybe one day he has to borrow money to purchase the shares those doctors own.
Maybe he will take it private? Sure owns enough of a stake.
Wow that .07 buyout conspiracy theory is looking like shit.
I do not believe those doctors will sell their shares for peanuts.
"The Company had net income of $45.4 million"last quarter.
There was no "publicly-stated valuation" -- the TRADING MARKET CAP was stated in a court filing. It had nothing to do with an appraised value or even an opinion. It was 100% a proverbial copy and paste from Yahoo's quote page, echoing the market cap it had at that moment in time. It's laughable to call repeating the market cap a "publicly-stated valuation" -- good GRIEF lol
Here's the entire quote that you "forgot" to include:
With a stock price ranging over the past year between 3 cents and 11 cents per share, and with $70 million in debt, the company's true value is at best $23 million, he said.
http://www.ocregister.com/taxdollars/fitzgibbons-495851-ihhi-million.html
And what do you know? When that was stated, the market cap was EXACTLY $22,977,653.50
Gee, I wonder where that $23 million "valuation" came from with a market cap about a hair under $23 million?
Not that it even matters -- it was an ATTORNEY stating it to a jury in closing remarks trying to win a court case.
Good grief, that whole thing is total bullshit.
(1) IHCH is fast on its way to having a book value at multiples higher than the fictional-nonexistent-for-many-years-running .07 buyout.
(2) The .07 buyout "intention" was when the stock price was at .03, was years ago, and was long before all that is positively happening now from the QAF.
(3) It's never been repeated in any filings including the 10K risk factors.
(4) It wouldn't even be legal to execute it simply because he has voting control Good grief.
I buy low and sell high against formula, including valuation model.
My prior guidance on IHCH, going all the way back to the bankruptcy debt buyout by Chauduri, was buy at/below 3 cents (reflects Chaudhuri's last 2 buys) or slightly higher at risk and sell at/above 7 cents. That recommendation is based upon historic and just recently, publicly-stated, valuation ($23 Million); and Chaudhuri's registered declaration in 13-D. I pay close attention to what's filed at SEC and the State.
I have no current position on IHCH. I'm staying off the trade completely until we see what Chaudhuri does with his registered buyout intention. I made a suggestion on prior post for any continued trading, should IHCH remain public. It appears there is movement, so I'm in standby and watch mode.
A 900 pound gorilla with warrants is not something I'd play with. Have fun, but don't count on winning in their game. :)
So you own zero shares?
Not if you do the math.
15C / 662M x 255M = 5.8C
255M OS and 662M fully-diluted does make a big difference on what is risk in the trade; so do you really want to follow the market at risk of a buyout decision that includes those 405M warrants?
Do the Math and hope Chaudhuri doesn't decide to go private at 7 Cents acquisition, justified with that dilution.
Oh....and the math on 18 cents at OS is 7 cents fully-diluted. Maybe the market wants to play the game by the hedge's rules. Ignore all filings and public statements that contradict anything that makes sense on real valuation It's called a sucker play (IMO).
Have you been reading the news articles on the California QAF "RAKE-OFF" by the State to it's general fund to balance the budget. Maybe you missed that problem and more financial risks coming. Example: Did you know that one of the hospitals is now operating at 1/3 of it's full, rated capacity due to loss of admissions. Not good. That hospital is at risk! That situation isn't getting better with the trend in lower admissions, and those stats they have filed.
I have the stats on all four hospitals, quarterly and annual, including fully-audited reports....all the way back to early last decade. You won't find that detail at SEC Edgar. I told everyone I was tracking and knew why Tenet dumped them at $70 Million back in 2005. They weren't the only big chain to exit Orange County due to losses.
I'm not here to beat them up on the problems. That's why I haven't given them too much static on what I see in the numbers. However, this is a possible end-game on buyout. I'd be less than helpful to traders in not pointing at elements that hurt valuation on any buyout decision.
I think Chaudhuri wants them and he obviously is doing websites to make the point on the subject, MINE!
65,000 Bid at $0.16
94k bid at .15 Far cry from .007 if ya ask me.
Rawnoc a quote from Transformers "there is more than meet the eye." Why would someone believe .07 a share is such a great deal for our shares. When IHCH shares are trading for twice that amount.
Good point lol. We're hearing thousands of times what terrible shape it is in yet somebody wants to buy it out cheap?
ROFL!!!!
If IHCH is in such bad shape why do Dr. Chaudhuri want to own the whole thing.Considering Dr.Chaudhuri past problems I would think he is not interesting in the possibility of creating more problems for himself.To top that off shareholders do not have to sell their shares.IHCH was profitable last quarter. The company now has postive shareholders equity.So,it appears to me IHCH is coming along just fine.
.07? ROFL!!!!!!!
IHCH Deal: Go Private Or Remain Public?
Is it possible that Dr. Chaudhuri wants to buyout the partners and keep IHCH public as a tracking stock of The KPC Group?
I've always considered the possibility, but have reservations that the partners would go-along with any deal, i.e. too much history of board wars, lawsuits, egos, etc. etc. That's why the 7 Cents was a good acquisition number in a majority-controlled buyout and reflects the SEC 13-D registration of up to 100% buyout of the OS. (IMO) The 7 cent deal would include a residual debt amount owed by the business against the partners' collateralized real estate. However, if he can negotiate a deal to buyout only the partners with little or no residual real estate debt to the partners, that might bring a fair (or discounted) price for their shares for the business at current OS (no 405 Million 7 Cent warrants as leverage) with consideration of the decline in admissions and other issues.
What would be fair? Well, I could see justification of 6 cents (Yes, I've mentioned that number in recent past) or lower against the decline, and maybe less with discussion of what it might take for him to fix the problems with new money as discount. Obviously, the real estate investment only operates well with a financially-stable business. It is/was a good argument for negotiation and a good buyout price. The outcome of the $5.9 Million legal judgment under appeal, also is something to consider, as additional risk. His last stock purchases in 2009 were at 3 Cents and his average-in on past buys and one sell is 4.75 Cents (from my spreadsheet on his trades).
If it remains public as a KPC Group affiliate, I would also consider the possibility of further dilution against new money and/or acquisition merger of his other hospital properties. It is a better play (IMO) to remain public to obtain new financing and operate a public Nevada Corp. holding company. However, I would be cautious in the absence of clarity until the play is understood.
If there is a market reaction to a low-ball number on insider trades and any declaration(s) inclusive of large dilution by KPC, I could see that as opportunity for a new position with market not understanding the trades or overreacting.
A link to your private email won't work. What's in it?
http://us-mg205.mail.yahoo.com/neo/launch?.partner=sbc&.rand=fl2brcp1hbdvf#mail
Appeal of recent decision.
Here kitty, kitty, kitty lol
I am beginning to wonder if Dr. Chaudhuri is posting on this board.
Dr. Chaudhuri Launching New IHHI Website
Here is the new website under construction, using his name in the URL and the IHHI logo banner (for IHCH):
http://www.drkalipchaudhurihealthcare.com/
The domain was registerd on August 20, 2013 at Go Daddy.
http://www.networksolutions.com/whois/results.jsp?domain=drkalipchaudhurihealthcare.com
The registration indicates name and address consistent with Premier Image LLC, Temecula, CA. Dr. Chaudhuri, in past, has used that business to build other websites, e.g. (see bottom of this webpage):
http://drkalipchaudhuri.com/
Here is the Premier Image LLC website (with address at right):
http://www.premierimagellc.com/
Note, the old IHHI website is still in existence:
http://www.ihhioc.com/
(IMO) This is new evidence of a completed deal awaiting announcement (see my last post on the 20th). Some thoughts: The Medical Centers page shows "(Orange County Area)" under the Title, i.e. he owns other hospitals in California (outside OC) that might be added to the page after taking IHCH private. Also, the About US page links to the last SEC Proxy filing in 2012 (as support of control by Chaudhuri).
Why would he file again for something already filed with SEC in wait for the conditions to complete the deal on IHCH?
Oh wait, he didn't change the 13-D to back-off his registered intention to buyout, so maybe he forgot the deal (while he's busy buying more hospitals). Now there's some hope-ium to trade and dump (or SHORT). Too funny.
Does Carl Icahn forget his deals or registrations? Probably not.
Does (or did) Chaudhuri have issues to negotiate at closure? That I think is very possible.
Is the deal done and waiting for CMS approval and payment date to file 8-K for closure? Maybe :)
Yeah, no issue at all. Just look at the fictional buyout never mentioned again in 3 years of filngs.
lol
I'm sure any required appraisal will sustain valuation to support any buyout number on IHCH. I don't see an issue in getting to closure. I don't see an appraisal as necessary to clearly understanding Value, just a step that should affirm (if they have a legal requirement in this case..no argument there). In fact, any appraisal might discuss the risks and provide a lower valuation than $23 Million. Paying $46 Million for something historically valued at $22-23 Million makes the legal requirement for an appraisal moot, and why it probably is an unnecessary step (IMO). So, it's a pointless argument. I certainly have issues with a high value on a business that's lost 1/3 of its admissions going into a paradigm that operates with admissions as its primary basis to derive income.
Don't you think the appraisal from the Tenet purchase has at least a good basis as starting point before the decline in the business is considered? That was about $22 Million after they spun-off the land and buildings to the Real Estate investment group in 2005.
Do you think that 3.5 Cents ($23 Million) is fair or too much after the decline in business and the risk in forward money? Maybe he should only offer 3 Cents and forget any multiple. After all, Chaudhuri paid 3 Cents for his last blocks of shares purchased.
I think he'll do right by his partners, so I'm still thinking he'll pay the 7 Cents, which should pass any appraisal with flying colors (IMO).
It's nice they are finally getting all this overdue money to back-fill the huge debt hole and help restore value, but one-time payments don't operate in a forward look unless they continue to the same level, which they are not. The downtrend of QAF under the old bill is in evidence and the new bill re-prioritizes the money with the hospitals 4th on the list. DSH also phases-out (from the 10-K):
"Commencing in federal fiscal year 2014, Medicare Disproportionate Share Hospital (“DSH”) payments will be reduced initially by 75% and increased thereafter to account for the national rate of consumers who do not have health care insurance and are provided uncompensated care."
"As of March 31, 2013 and 2012, estimated DSH receivables were $5.9 million and $5.0 million, respectively."
Bullshit. Good grief.
The 3.5 Cent Valuation at fully-diluted and 2x for 7 Cents is fair and appropriate by their own public disclosure of value and historic valuation. Anyone looking carefully at the financials can see the valuation (at best) and problems with forward business due to the major decline in admissions.
The board has independent directors in the decision and I'm sure they will give any offer a fair appraisal in voting approval.
Where you are coming up with this 3rd party idea is interesting, but unnecessary and may have no legal standing (IMO). However, getting a opinion from an appraisal isn't going to change the problems and those being bought-out on the inside in this insider-buyout are the only ones with any legitimate complaints on any buyout number. If they decide to attempt to block it under Pinky Nevada Law, good luck on that. If it went out for a public vote in lacking a majority, I could see the appraisal process as beneficial in acquiring majority....if that's what you see as a prior example to support that process.
Tenet certainly didn't think the value was wrong with better financials (and admissions) back in 2005, so why would anyone argue with their prior appraisal if you're getting 2x that amount now. Tenet got rid of these as drag on their books and wanted out of Orange County.
Increasing the authorized share count doesn't require a third party fair value opinion so that's irrelevant.
Example of Chaudhuri Majority Control of IHCH
Here is an 8-K filed in July 2010 to amend and restate the Articles of Incorporation to increase the AS from 500M to 800M shares. Note the action was both approved by the Board and a Majority (54.2%) of the Shareholders with 138,349,832 of the 255,307,262 Outstanding Shares.
http://www.sec.gov/Archives/edgar/data/1051488/000101968710002496/ihhi_8k-063010.htm
Chaudhuri has 128,601,334 issued shares and Thomas has 9,748,498 issued shares for a Total of 138,349,832 voting to approve. Approval by the Board and Simple Majority of the Shareholders was all that was necessary for this action.
The AS increase was to accommodate the 405 Million warrants issued to Chaudhuri in buyout of the $81 Million bankruptcy debt.
I'm sure he'll follow Nevada Corporate law, Bylaws, SEC filing, etc. in the buyout offer and closure for IHCH.
Overpaying for something doesn't make it more valuable. It just means you paid too much.
If there is a buyout offer, which I doubt, he is going to have to obtain a legal opinion on the fair value. Likely the first datapoint for that would be the value that the public market is giving for the stock. I highly doubt that anyone would consider anything less than that as fair. Most buyouts are for significantly higher than the current trading price of the stock. I would be surprised to see anything less than $0.30 on a buyout offer. Then again, I'm not expecting a buyout offer.
Dr. Chaudhuri may desire to purchase all the shares of IHCH. But whether shareholders are required to sell their shares to him is the question.
Or, he might only pay 6 Cents given the collapse in admissions and warrants devalued from 7 Cents to 5 Cents in recent trade.
If you consider the 9 Cent value on the $23 Million against current OS and sliced off 1/3 due to admissions decline, the 6 cents does have some merit (IMO).
But, I'd honestly question a 50 Cent valuation at $330+ Million against the decline in the business and risks in forward monies from DSH and QAF (in phase-out or re-prioritized under Obamacare).
With only about 3.5% of the stock in the float for a buyout, I would suggest the insiders are making the decision on price and the 2x basis isn't a bad price (IMO). To fix the admissions problem, he may need to throw money at it once he fully owns it, so I'm not incline to believe he'd pay more than 7 Cents.
If you'll check, you'll see that Chaudhuri registered to buyout at about the same point where QAF money was finally approved (1st round back in December 2010). In other words, this buyout plan was based upon QAF money coming over the original 3 years, and extended in April due to the CMS payment delays.
I think Charles had it correct when he suggested cancelling the S-8 for issuance of employee options was a signal that a buyout was coming. That certainly could be a first step to start of final closure negotiations, i.e. final lock on shares.
MikeDDKing, thank you for continuing to b bring hard, well-researched DD to the board since .06/share.
I doubt the filing from two years ago can be relied upon. In any case, I don't see a price written there. Perhaps he will offer $0.50/share.
Dr. Chaudhuri's SEC Registration SC 13-D for IHCH
Here's is the most recent 13-D/A (last amendment), where Dr. Chaudhuri's declared his intentions to acquire up to 100% of the outstanding shares (see Note 4).
http://www.sec.gov/Archives/edgar/data/1051488/000101968710004394/ihhi_13d-123110.htm
Note, Chaudhuri is partnered with Thomas, and the declaration may or may not include Thomas with respect to after-buyout partnership with him or any other party(s) on the buyout group. Thomas is partnered with Chaudhuri in owning 49% of the hospitals' land and buildings in the real estate investment group that is a separate entity, spun-out after acquisition from Tenet in 2005. That is why the $70 Million buyout from Tenet was split into the business worth just under $22 Million in Spring 2005, and the real estate group (not IHCH) with a collateralized loan to the business of the 2005 real estate valued at about $48 Million in 2005.
The business valuation of $23 Million (therefore) has history and recent confirmation by public statement. However, the 2x multiple in buyout at 7 Cents (over $46 Million) tracks to insiders resolution of debt in formula at closure (IMO). The basis of the evaluation reflects the bankruptcy debt buyout in Spring 2010 and Dr. Chaudhuri's subsequent amendment of 13-D to declare buyout intention in his SEC Registration against the leverage provided by the warrants issued from that deal to target the diluted closure price per share.
13-D is exactly where a buyer declares intention to acquire/buyout a public company.
Bullshit. There is no such thing as an "SEC registered buyout." IHCH operates in this place called the United States. In the United States, especially among public markets, there's this thing called rules. With these rules insiders and majority owners can't simply vote themselves ownership of an entire company at any arbitrary price they want. That is illegal.
IHCH's tangible book value with the next earnings report will be well north of .07 -- the whole silly .07 buyout notion because of an INTENTION from over 3 years ago is just.....silly. Ain't happening.
By the way, the statement in court in February was reference to the TRADING MARKET cap. Wasn't an opinion of fundamental worth but a factual statement on what the market was deeming it was worth at that time. Now the market is deeming it worth a lot more. Apparently the market doesn't buy any silly .07 buyout conspiracies that have never happened and will never happen.
What's your explanation for IHCH 7 Cent warrants sold and bought at 5 cents back in February? The large chunks of old QAF system money known coming since last August, should have made the warrants more, not less valuable in your think. Otherwise, that trade must have been nonsense or someone's got their ideas totally wrong and the nonsense is in the current PPS. Obviously, someone sees RISK and knows the real value of the trade. Probably the same party shorting at every opportunity against all those warrants they got at 5 and 6.125 Cents as margin. Maybe one of the biggest hedges around that like to play games with a low float ....
Wow! A business sold by Tenet in 2005 in better financial times with just OK admissions (on record back then) for just under $22 Million is suddenly worth $120 Million in market cap on Friday's close on track for 33% admissions decline and a major shakeup in revenue coming with Obamacare in 2014. That phase-out of DSH money and the hospitals dropping to near the bottom on QAF payout priority list should be real pretty on the books. When they publicly stated IHCH was only worth $23 Million AT BEST in February, was that just with the debt gone or was that with the admissions returning to old 2008 levels. Yeah, that all makes lots of sense to justify more than 7 Cents value to a buyer, NOT. Current PPS....Now there's some real NONSENSE.
Guess someone didn't do so hot in DD in buying into this move, or maybe they just listened to nonsense advise of those dumping their shares. Oh well, it's only money.
Keep your fingers crossed the man still is willing to pay the 7 Cents after rescuing this mess from bankruptcy in 2010, and completes his registered SEC buyout of the OS. Frankly, a brave man to take on all these problem California hospitals (IMO) with all the flak he gets for his efforts.
Any update and the mythical and laughable .07 buyout?
IHCH Admissions Decline Update
Here is some data to help understand my concern over the decline in admissions and its impact on valuation and forward look on the changes with Obamacare. The numbers are directly from the Annual and most recent quarter report (in thousands):
FY2006 - 27.5* - Baseline post acquisition by IHCH from Tenet Healthcare
FY2007 - 27.8
FY2008 - 28.0 - Peak Admissions prior to onset of Great Recession
FY2009 - 26.8 - Bankrupcty Filed in Fall
FY2010 - 25.6 - Emerged from Bankrupcty with Chaudhuri recognized ownership in common majority and super-majority fully diluted at 7 cents
FY2011 - 23.1 - 9.7% drop
FY2012 - 21.3 - 7.8% drop
FY2013 - 20.2 - 5.2% drop
2014Q1 - 4.7 - Drop of 7.8% for Q1 compared to 5.1 in Q1 of 2013
*Note: The FY2006 number is derived from the FY2007 10-K report from the statement "Inpatient admissions increased only slightly by 1.1% to 27,806 in the year ended March 31, 2007."
If rate for FY2014 remains at current trend, the full year may operate at 18.7 (estimated). That estimate puts the decline since FY2008 at over 33%.
A bottom to the decline is still not in evidence and current/future CMS policy and impact of Obamacare is placing added doubt on admissions trend (IMO).
Since we all seem to be shareholders on this board, let's all take a vote.....Those in favor of selling the company for 7 cents post 'I'.
MikeDDKing, thank you for your hard, well-researched and actually accurate DD to the board since .06 per share.
It has allowed savvy investors to ROFL all the way to the bank.
We've already been over this laughable nonsense. No majority shareholder of any public company can force a buyout at some lowball price. I prefer less sloppy research like MikeDDking provided at .06 about the coming QAF payments which, *gasp* happened exactly like MikeDDKing predicted.
Good grief, there is no mythical .07 buyout again.
ROFL!!!!!
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Western Medical Center Anaheim
IHCS News & Press Releases IHHI Announces Completion of Re-Financing Click below to read the full press release! http://biz.yahoo.com/prnews/071019/laf047.html?.v=101 IHHI Blazes and Independent Path for Its Board Click below to read the full press release! http://biz.yahoo.com/prnews/070921/laf061.html?.v=20 Two IHHI Hospitals Receive Marks of Excellence Click below to read the article from The Orange County Register! http://www.ocregister.com/ocregister/healthscience/homepage/article_1314338.php IHHI's Western Medical Center Santa Ana Signs Agreement with flexSCAN Click below to read the press release! http://biz.yahoo.com/pz/060921/105592.html Western Medical Center Santa Ana's Neurosurgical Services featured in the September 2006 issue of Smart Business Magazine Chapman Medical Center's Center for Heartburn and Swallowing featured in the August 2006 issue of Smart Business Magazine Share Structure: IHCH Confirmed Share Structure A/S: 400,000,000 O/S: 255,307,262 Restricted: 235,558,871 FLOAT: 19,748,391 !!!!
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