Janks,
If you want to be a long on BEDA, then you HAVE to believe in the acquisition. PERIOD.
At this point in time, TMH is nothing more than a holding company for Basic Solutions.
Basic Solutions was founded by the same old gal that has TMH.
Is Basic Solutions, who are in the business of mobile imaging, worth anything?
Well, they are (self-admittedly) run from the homes of their operatives who, apparently service their clients daily and don't return the vehicles to a central lot nightly.
I really don't think Basic Solutions has any presence to speak of in Houston proper. Maybe in the outlying area, but not around the Texas Medical Center ... that just wouldn't make any sense.
How much money worth of physical assets (equipment & vans) Basic Solutions brings to the table is unclear, but I don't think it is much and it certainly isn't as important as the opportunity for BEDA to look like they are doing SOMETHING positive by making an acquisition.
The value of these PRs is obviously reflected in the PPS rise over the past two months.
Now, how should we evaluate the DEAL?
Who brings what to the table that might make BEDA a going concern?
In my opinion, BEDAs goodwill is shot after abandoning their client by shuttering the Kirby Rd facility.
As ultra-sound equipment has become very affordable, the whole concept of Basic Solutions may or may not be solid going forward.
Seems any doctor or clinic that chose to could easily afford to open another profit center by setting up an imaging room.
But, like in all businesses, the competence of the operator is critical in the profitability of the company, with the business of imaging services being no exception.
While anybody can get ultra-sound training for the equivalent of about 30 or 40 hours (?) of college credit, I DO believe that the gentleman spearheading Basic Solutions operations comes across as being very knowledgeable and a gifted trainer, which bodes well for expansion should it turn out that their business concept is still viable.
Do I think trusting my money long term the businessman Graham is wise?
NO WAY!
With decades worth of track records to back up my opinion, I declare him a total failure.
The only wild-card in this whole equation is, if the mobile imaging business is viable, there aren't any massive players.
Certainly no national presence out there.
AND with the new legislative direction towards a National Database for Health Care, I suspect that all procedures and billing will be mandated to originate from single sources ... ie: the imaging, reading, and all compensation filings will need to be handled 'in-house' by a single entity (corporation) who is ultimately responsible for the database reporting, record accuracy, and record security.
Now, supposedly BRDA has the re-pore and expertise to navigate the insurance and government program billing requirements.
So, as the new laws enact and tighter restrictions become mandated, the gypsy mobile imaging services should fall by the wayside allowing for a big dog to emerge.
The only questions you need to ask yourself is:
Do I believe there will be a need for this type of service going forward?
And
If so, do I trust BEDA to pull it off?
Even if the business is a small percentage of what is available in the imaging sector, a well-run, national presence would be huge.
But, if it is the next 'sliced bread', why aren't the REALLY BIG DOGS already on it?
Personally, I have no faith in Graham & Herb to pull this together.
Given a different set of partners, I do believe Basic Solutions might have a chance to do big things.
