Varadharajan Ragunathan
Long/short equity, deep value, research analyst

Athena - The Bubble Might Burst Soon

The market, over the last twelve months, has generously rewarded SaaS companies. This is a matter that has been debated to great lengths here. Given the buzz words around healthcare reform and reducing healthcare costs, this has set off quite a frenzy for healthcare based SaaS stocks.

Athena healthcare (NASDAQ:ATHN) is a stock that has immensely benefited from this run-up having delivered more than 100% returns over the last 12 months. Athena has a strong business model where it processes claims on behalf of healthcare service providers and charges them a % of the receivables collected (typically 3% to 6%).

No sign of profitability for a company that is in its 17th year of operation. An industry...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details