# CRH down big time



## Bury (Mar 10, 2017)

Any explanations for this 20% crash? colonoscopies not in fashion any more ?


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## internalaudit (Jan 27, 2017)

Is it a decent time to buy for patient investors?


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## twa2w (Mar 5, 2016)

How patient :-(


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## MrsPartridge (May 15, 2016)

Saw this over at Stockchase: From the "experts"

He has no price target. It is another great Canadian healthcare stock that got hammered a short while ago. The reason for the most recent decline is that Central Medical Services has changed how they code some services. This company should eventually be at higher prices, but he wants to see the dust settle.
and

An outsourcer in medical clinics where they take a 50% stake in the business. Registered nurses are being paid as full medical doctors. Their profitability could be hit when they are re-rated. The argument goes on. He thinks the short thesis is a little overplayed. 

Not sure what to think as these "experts" are really just noise and often don't give good advice.


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## doctrine (Sep 30, 2011)

CRH is trading at a premium valuation, about 10 times EBITDA, 20 times earnings and 4 times book. That's at $4, not $12. They will take a big hit to revenue with reduced fees for their services which means the growth story is at best hurt if not stalled completely. They may be able to overcome with acquisitions, but they could actually use a share issue which probably won't happen; nor will the stock price return to $12 anytime soon. They have $103M of equity in their book, but $143M of it is intangibles, i.e. the stock has net negative tangible book value. Not a lot to fall back on.


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## internalaudit (Jan 27, 2017)

Thank you all for sharing your view points.


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