Pacific Health Care Organization Inc. (PFHO)

[natstocks]

I think we gotta face the fact that we might have to buckle down for the long-term -- like a year or two. At the same time, the stock price has almost been cut in half from its highs, so that indicates bad news is priced in. (IMO, *more* than priced in.)

If they lost that overflow work, it would be significant: coupled with the Companion revenue it's almost $1M, roughly equal to the past year's growth: $1.7M to $2.75M, IIRC.

On a *slightly* positive note, Companion's share of revenue in Q3 was 11%, not 14% as it was for the whole 9 mos. -- a not totally insignificant difference:

http://nathunt.com/2014/11/pfho-q3-2014/

Now, why did PFHO feel it necessary to express uncertainty about the overflow work? Maybe they realized in losing Companion they have to be a little more proactive in expressing risks about their large customers. They didn't expressly say, "We think this revenue is going away."