It was early Wednesday afternoon. INOL was up 25,000% or something like that, DMGM was finally falling after a steroid like rally, and PFMS was sitting rather quietly, as it usually does.... until an 8-K filing came through on the wires. This stock had not released news or had a filing all year until today. While some might not find it especially news worthy, as the main headline is a change of CEO's, I find it to be a pivotal event for both the company and its shareholders. Why... you ask?
I think today's 8-K revealed what everyone wanted to know about the company at its future. I have highlighted what I feel is the more pertinent parts of today's filing:
As of the date of this Current Report, the Company continues to be a diversified healthcare staffing and services company. Management believes that the fundamental strategies driving the Company’s business into the future are: (i) organic growth of its current medical services and practices; and (ii) the potential acquisition of small, privately-held home healthcare or physical therapy companies. The Company’s primary operations consist of sales and marketing of medical billing and data service contracts on an outsourced basis. Management further believes that consolidation of the healthcare services industry is at an all-time high as small companies find it difficult to grow due to capital shortages and operational limitations.
Essentially PFMS is pursuing the acquisition of a privately held company, one that will likely bring value to shareholders. This also means the value of the shares should increase. This increase is dependent upon the size and scope of the company. Is it profitable, what type of revenues does it produce? Either way this is adding value and investors today cheered the news.
I don't think this is a one day wonder either. The filing came out later in the session. I would think it is still being digested, meaning the stock should see a nice bump when it opens for trade tomorrow.
If PFMS is not on your watchlist now is the time to add it.
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1 comment:
I like PFMS today, we can see, they have made good movement and held some nice gains. Sometimes with these, a little movement brings a big pop.
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