Replies to post #1053 on Pacific Health Care Organization Inc. (PFHO)

[investorone]

Hi Huck-not sure but it may all be an indication of growing business. What was your take on the earnings report and what's your sense of things going forward?

[jbaxter]

Pie guy, great question. Here is my take, first remember this from their filings:

"Our business generally has a long sales cycle, typically in excess of one year."

Thus sales growth today was seeded perhaps over a year ago. I assume that the greatest concern is executing on their model with staff to support and retain the additional clients. The biggest mistake a company can make is to focus on sales without the infrastructure to support it. Also, with technology and the lag time in sales, I don't know if an increase in sales personnel is as needed as it was a long time ago.

CRVL is about 20 times greater in size. My question is what is CRVL's revenue per enrollee? Are they facing competitive margin pressures? My guess is not really, as I'm sure they can poach clients from CRVL and new business to reach these sales increases.

I don't think earnings would stop someone who is looking to sell from selling. But I really think whenever they get listed or noticed or do an acquisition or get acquired, we may all wish we doubled down in the double digits. Can't speak or advise anyone else, but for me, I'm following what the CEOs and large 5%+ holders are doing, either buy more or hold tightly. Remember, there were people willing to pay $76 for a lot of stock, my guess is they aren't two bit players, and we will see more of it after this Mexican standoff between some sellers and not yet motivated buyers ends.

Thanks for sharing your thoughts. Hope to see you in the 100s!