Replies to post #335 on eHealth, Inc (EHTH)

[VortMax]

thx I thought this would be over 30 earlier this year, but now is the time IMO. Hoping for mid 20s in May....and maybe some luck to approach 30..

[VortMax]

insanity here, $16.57 book value here with market only giving $2.00 in value today in forward looking business when EBITA is $25M in 2018 (likely to be more as the Medicare constraints are too high due to commission expansion in Medicare). Have to figure a minimum of $15.00 in value on $1.25 EBITA PER SHARE, so $31+ here at present, but that is even way too low as EBITA is going up at 20% CAGR.

Guess is verification is $30M EBITA 2018 and $40M 2019

[VortMax]

Major OPEd out on ehth

https://www.google.com/amp/thehill.com/opinion/healthcare/386275-mr-president-let-markets-help-save-medicare%3famp

[VortMax]

Big Medicare commission raise next week is very likely always announced around June 1. 3% raise would add about $4M to the bottom line of 2018, and of course if raises keep coming a lot more than that....

http://blog.ritterim.com/2017/05/31/maximum-broker-commissions-for-medicare-advantage-ma-and-medicare-part-d-pdp-for-2018/

[VortMax]

record commission increase news 5.8% on Medicare Advantage, adds $5M to 2018 EBITA which is now $30M. However, EHTH has a constraint applied to is Medicare Advantage of 7%, which is ridiculous. So its more like $35M EBITA 2018...

https://www.psmbrokerage.com/blog/medicare-advantage-contract-year-2019-agent-and-broker-compensation-rate-adjustments