MDF post $338K loss in Q108 and 7400 HMO member.
Somewhat dissapointing result but not surprising.
On the positive side:
- total customer increased 2,700 to 33,000 (mainly form HMO increase)
- HMO losses dropped to 2.7M from 3.9M. and the 2.7M loss includes 1.4M advertising expense. should be able to break even within 12 months or so IMO (after the next open enrollment period)
- Cash up to 40.7M from 38.7M with still 0 debt
- HMO MER dropped to 90.5% from 95.9%
- They expected PSN MER to improve as we move into the year
On a negative side:
- Overall MER increase to 90% from 88.4%, due to increased hospital admissions and higher than normal catastrophic cases
- decline in investment earning due to decline in financial markets (will be interesting on what kind of investment do they have, besides the basic short term FDIC insured type of investment, if they have any. I am hoping they don't)
- MDF post $338K loss in Q108 vs $228K gain last year
- HMO membership takes a long time to reach 10,000 members (now at 7,400)
Not sure what the stock price will do today with this mixed result but hoping within 12 months or so they have a clear picture whether they can be profitable in overall (and breakeven in HMO). Going into this year, PSN performance definitly need to improve from Q108 performance.
Stan
