Path Inc

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anonymous said:
Not if they're bidding on Pathinc. They have a history of overpaying for small acquisitions, but even they will not pay full price for this muffler.
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Oh,please. Anyone in a decision making position is not paying you any attention. Aren't you the janitor? The objective is to remove competition, not rebuild a lab. History is simply repeating itself.
 






anonymous said:
Oh,please. Anyone in a decision making position is not paying you any attention. Aren't you the janitor? The objective is to remove competition, not rebuild a lab. History is simply repeating itself.
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Yeah. I'm the janitor. Wow. Good one. The objective here would not be to remove competition. No one from Labcorp is say, "We can't get a foothold in California with those Pathinc folks dominating the market. We need to puchase them!" Pathinc just doens't pose a competitive threat.

Now, Pathinc's reason for existing would like Labcorp to think otherwise, but they simply fell short in their plan. If they do purchase them, it will be for their book of business and its immediate impact on their regional budget. And, they will be paying pennies on the dollar. Those making these small acquisitions are not that strategic; not really thinking long term.

This is all my humble opinion of course. So, lets see what happens.

The Janitor
 






anonymous said:
Yeah. I'm the janitor. Wow. Good one. The objective here would not be to remove competition. No one from Labcorp is say, "We can't get a foothold in California with those Pathinc folks dominating the market. We need to puchase them!" Pathinc just doens't pose a competitive threat.

Now, Pathinc's reason for existing would like Labcorp to think otherwise, but they simply fell short in their plan. If they do purchase them, it will be for their book of business and its immediate impact on their regional budget. And, they will be paying pennies on the dollar. Those making these small acquisitions are not that strategic; not really thinking long term.

This is all my humble opinion of course. So, lets see what happens.

The Janitor
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duh, you are going the long ways home to only confirm the previous post. Labcorp cannot hold on to any business aquired through acquisition (its only growth method). It DESTROYS EVERY business that It touches, knocking them off, one by one.Who said that they were a threat? Please. Purchasing Path Inc for its management team may seem strange to you, but it makes sense if they want to make the changes necessary to enhance their business model. Almost every business trying to survive in this climate is streamlining and looking for a buyer, merger, or bankruptcy.The large labs hate competition. Their foremost goal is dominate...In short, monopoly.
 






anonymous said:
duh, you are going the long ways home to only confirm the previous post. Labcorp cannot hold on to any business aquired through acquisition (its only growth method). It DESTROYS EVERY business that It touches, knocking them off, one by one.Who said that they were a threat? Please. Purchasing Path Inc for its management team may seem strange to you, but it makes sense if they want to make the changes necessary to enhance their business model. Almost every business trying to survive in this climate is streamlining and looking for a buyer, merger, or bankruptcy.The large labs hate competition. Their foremost goal is dominate...In short, monopoly.
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Duh is right. You have a fundamental misunderstanding of acquisitions. Do you really think Labcorp will pay 1-2, 3 times Pathinc’s revenue for their management? Of course not. No management team is worth the price of their revenues. Their leaders will cash out and the rest will be subject to redundancy cuts. Labcorp would be paying 1-2, 3 times revenue for the current and future revenues. It’s Pathinc! They are NOT going to be part of their Centers of Excellence!

And you’re being naive if you think Pathinc would be selling to Labcorp to create efficiencies, or that bringing Pathinc into the fold is going to streamline Labcorp’s model.

Also, your post states: “Labcorp cannot hold on to any business aquired through acquisition (its only growth method).”

With all due respect, that just doesn’t make sense - it's illogical. If acquisitions is their only growth method and they can’t hold onto any acquisition business, then how are they showing a consisting 3-4% growth? How can they report a 25% growth one quarter with the Covance acquisition and its additional 1.5 billion driving that number? Their stock would plummet if smart people and institutional investors thought they couldn’t hold onto acquisition revenues.

The attrition number for acquisitions used to be 10%. That is an old number, so the average could’ve changed. The large clients, with LIS interfaces, affiliation agreements, phlebotomists in offices etc… are less likely to be in the 10%.

You also don’t have a realistic view of Labcorp’s ability in the market. Some regions suck due to bad VPs, Area Sales Directs etc…, but other regions are great. Quest has the same problem. My guess is your global and visceral opinion of Labcorp comes from your regional experiences. Another guess is Pathinc’s customers would be happy with the benefits of a large commercial lab.

The Janitor
 






anonymous said:
Duh is right. You have a fundamental misunderstanding of acquisitions. Do you really think Labcorp will pay 1-2, 3 times Pathinc’s revenue for their management? Of course not. No management team is worth the price of their revenues. Their leaders will cash out and the rest will be subject to redundancy cuts. Labcorp would be paying 1-2, 3 times revenue for the current and future revenues. It’s Pathinc! They are NOT going to be part of their Centers of Excellence!

And you’re being naive if you think Pathinc would be selling to Labcorp to create efficiencies, or that bringing Pathinc into the fold is going to streamline Labcorp’s model.

Also, your post states: “Labcorp cannot hold on to any business aquired through acquisition (its only growth method).”

With all due respect, that just doesn’t make sense - it's illogical. If acquisitions is their only growth method and they can’t hold onto any acquisition business, then how are they showing a consisting 3-4% growth? How can they report a 25% growth one quarter with the Covance acquisition and its additional 1.5 billion driving that number? Their stock would plummet if smart people and institutional investors thought they couldn’t hold onto acquisition revenues.

The attrition number for acquisitions used to be 10%. That is an old number, so the average could’ve changed. The large clients, with LIS interfaces, affiliation agreements, phlebotomists in offices etc… are less likely to be in the 10%.

You also don’t have a realistic view of Labcorp’s ability in the market. Some regions suck due to bad VPs, Area Sales Directs etc…, but other regions are great. Quest has the same problem. My guess is your global and visceral opinion of Labcorp comes from your regional experiences. Another guess is Pathinc’s customers would be happy with the benefits of a large commercial lab.

The Janitor
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Don't try to make it sound more complicated than it is. Everyone knows what happens to a lab once LabCorp takes control. If you will recall, it was only a few years back that the CEO, DK, confessed that the corporation was at the point where the lights were about to be turned off. The fact that LabCorp cannot grow organically is a clear warning sign. It indicates a serious weakness in their business model, management team, and long term strategy for development. It is something that does concern Wall Street when anylysing this company. As far as attrition goes, you must be pulling numbers out of your ass. They sre lucky if they have 10% of acquired business at the end of a year. And yes, as long as there are clients who value the cheapest price over quality of service, you will have clients. Everyone understands that LabCorp, another name for Walmart, is not in business to do lab work. In a nut shell, Wall Street investors are concerned with profits. How do they continue to make profits? Short term strategies. By laying off staff and working their understaffed employees to an early grave, micromanaging drone like managers and supervisors, finding clever ways to commit wage theft, quarterly rifing employees in order to make budget, counting every penny spent on paper clips,hiring micromanaged salespersons who are really glorified babysitters for acquired clients, doing pull throughs on managed care among other illegal acts, etc. And finally, let's see what Covance looks like after a couple of years of LabCorp bleeding them dry.

The comment about Path Inc being purchased for it's management team, although a good idea, was meant to be tongue in cheek.
 






anonymous said:
Duh is right. You have a fundamental misunderstanding of acquisitions. Do you really think Labcorp will pay 1-2, 3 times Pathinc’s revenue for their management? Of course not. No management team is worth the price of their revenues. Their leaders will cash out and the rest will be subject to redundancy cuts. Labcorp would be paying 1-2, 3 times revenue for the current and future revenues. It’s Pathinc! They are NOT going to be part of their Centers of Excellence!

And you’re being naive if you think Pathinc would be selling to Labcorp to create efficiencies, or that bringing Pathinc into the fold is going to streamline Labcorp’s model.

Also, your post states: “Labcorp cannot hold on to any business aquired through acquisition (its only growth method).”

With all due respect, that just doesn’t make sense - it's illogical. If acquisitions is their only growth method and they can’t hold onto any acquisition business, then how are they showing a consisting 3-4% growth? How can they report a 25% growth one quarter with the Covance acquisition and its additional 1.5 billion driving that number? Their stock would plummet if smart people and institutional investors thought they couldn’t hold onto acquisition revenues.

The attrition number for acquisitions used to be 10%. That is an old number, so the average could’ve changed. The large clients, with LIS interfaces, affiliation agreements, phlebotomists in offices etc… are less likely to be in the 10%.

You also don’t have a realistic view of Labcorp’s ability in the market. Some regions suck due to bad VPs, Area Sales Directs etc…, but other regions are great. Quest has the same problem. My guess is your global and visceral opinion of Labcorp comes from your regional experiences. Another guess is Pathinc’s customers would be happy with the benefits of a large commercial lab.

The Janitor
Click to expand...
Dear janitor,

You can put lipstick on a pig but it is still a pig. What a way to make a living. More kool aid?
 






“Don't try to make it sound more complicated than it is.”

And don’t you try to reduce this to a few unsubstantiated talking points.

“Everyone knows what happens to a lab once LabCorp takes control. If you will recall, it was only a few years back that the CEO, DK, confessed that the corporation was at the point where the lights were about to be turned off.”

When did this happen. A, then new, CEO confessed to the public and shareholders that Labcorp was at the point of going out of business? I don’t think so.

“The fact that LabCorp cannot grow organically is a clear warning sign. It indicates a serious weakness in their business model, management team, and long term strategy for development.” It is something that does concern Wall Street when anylysing this company.”

But it’s just not true! LabCorp’s organic growth has been a steady 4-5%, and Wall Street has been pleased. David King has been telling institutional investors that the organic growth is robust over all segments. So, no warning sign here. The industry growth going forward is 3-4%, so the growth of Labcorp’s requisitions volume and revenue (minus acquisitions) is one reason their stock continues to rise.

“As far as attrition goes, you must be pulling numbers out of your ass. They sre lucky if they have 10% of acquired business at the end of a year.”

Really? So, in order for that number to be off, you must have a different one. Please share. 10% was the average attrition number. This is data readily available to Labcorp’s officers. If anyone on this board has been in a room with officers of the company, have been in charge of a Labcorp budget, and have heard a different number, please chime in.

“And yes, as long as there are clients who value the cheapest price over quality of service, you will have clients.”

Another talking point, but there are limited client-bill markets and they’re shrinking. Are you talking about managed care pricing? What pricing? Again, this is another indication that your limited understanding of Labcorp comes from your regional experience.

“Everyone understands that LabCorp, another name for Walmart, is not in business to do lab work. In a nut shell, Wall Street investors are concerned with profits.”

No! They’re not concerned with profits! Wall Street's concern is easily measured by the price trends of a stock. This company has been steadily growing and in the next rew years, expects 25 million more patients to enter the managed care fold. The state of their union is good! Here is what the large institutional investors have to say. LH’s stock rose 20 points in the last year! For a 12 billion dollar market cap company, that’s outstanding! The last five years, rose 40 points and in 2009 their stock price was 55 dollars, and now 121! This doesn’t seem to me like Wall Street is worrying.

“How do they continue to make profits? Short term strategies.”

Of course well-run companies are concerned with expenses, and this is usually quarterly budgeting. So what?

“By laying off staff and working their understaffed employees to an early grave, micromanaging drone like managers and supervisors, finding clever ways to commit wage theft, quarterly rifing employees in order to make budget, counting every penny spent on paper clips,hiring micromanaged salespersons who are really glorified babysitters for acquired clients, doing pull throughs on managed care among other illegal acts, etc.”

What?!! Again the cost cutting is normal for any well-run company, but wage theft? Sales reps glorified babysitters? This is highly emotional rhetoric at best and can easily be debated point by point, but how is acquiring pull through business illegal? Both Labcorp and Quest comply with a long-standing Corporate Integrity program. The OIG would be all over the UHC deal (for example) if their pricing was too low. The pull-through from the client offices are mostly due to client convenience. They’d rather not use two labs. If in a pass-through billing market, overly eager Compliance Officers and the Labcorp legal team will not allow pricing to fall below fair market value. Other illegal acts? I don’t think so. This isn’t the 1990s anymore.

“And finally, let's see what Covance looks like after a couple of years of LabCorp bleeding them dry.”

By all indications, it’s going well so far.

“The comment about Path Inc being purchased for it's management team, although a good idea, was meant to be tongue in cheek.”

I could usually detect subtle humor, but it sure didn’t seem that way.
 






anonymous said:
“Don't try to make it sound more complicated than it is.”

And don’t you try to reduce this to a few unsubstantiated talking points.

“Everyone knows what happens to a lab once LabCorp takes control. If you will recall, it was only a few years back that the CEO, DK, confessed that the corporation was at the point where the lights were about to be turned off.”

When did this happen. A, then new, CEO confessed to the public and shareholders that Labcorp was at the point of going out of business? I don’t think so.

“The fact that LabCorp cannot grow organically is a clear warning sign. It indicates a serious weakness in their business model, management team, and long term strategy for development.” It is something that does concern Wall Street when anylysing this company.”

But it’s just not true! LabCorp’s organic growth has been a steady 4-5%, and Wall Street has been pleased. David King has been telling institutional investors that the organic growth is robust over all segments. So, no warning sign here. The industry growth going forward is 3-4%, so the growth of Labcorp’s requisitions volume and revenue (minus acquisitions) is one reason their stock continues to rise.

“As far as attrition goes, you must be pulling numbers out of your ass. They sre lucky if they have 10% of acquired business at the end of a year.”

Really? So, in order for that number to be off, you must have a different one. Please share. 10% was the average attrition number. This is data readily available to Labcorp’s officers. If anyone on this board has been in a room with officers of the company, have been in charge of a Labcorp budget, and have heard a different number, please chime in.

“And yes, as long as there are clients who value the cheapest price over quality of service, you will have clients.”

Another talking point, but there are limited client-bill markets and they’re shrinking. Are you talking about managed care pricing? What pricing? Again, this is another indication that your limited understanding of Labcorp comes from your regional experience.

“Everyone understands that LabCorp, another name for Walmart, is not in business to do lab work. In a nut shell, Wall Street investors are concerned with profits.”

No! They’re not concerned with profits! Wall Street's concern is easily measured by the price trends of a stock. This company has been steadily growing and in the next rew years, expects 25 million more patients to enter the managed care fold. The state of their union is good! Here is what the large institutional investors have to say. LH’s stock rose 20 points in the last year! For a 12 billion dollar market cap company, that’s outstanding! The last five years, rose 40 points and in 2009 their stock price was 55 dollars, and now 121! This doesn’t seem to me like Wall Street is worrying.

“How do they continue to make profits? Short term strategies.”

Of course well-run companies are concerned with expenses, and this is usually quarterly budgeting. So what?

“By laying off staff and working their understaffed employees to an early grave, micromanaging drone like managers and supervisors, finding clever ways to commit wage theft, quarterly rifing employees in order to make budget, counting every penny spent on paper clips,hiring micromanaged salespersons who are really glorified babysitters for acquired clients, doing pull throughs on managed care among other illegal acts, etc.”

What?!! Again the cost cutting is normal for any well-run company, but wage theft? Sales reps glorified babysitters? This is highly emotional rhetoric at best and can easily be debated point by point, but how is acquiring pull through business illegal? Both Labcorp and Quest comply with a long-standing Corporate Integrity program. The OIG would be all over the UHC deal (for example) if their pricing was too low. The pull-through from the client offices are mostly due to client convenience. They’d rather not use two labs. If in a pass-through billing market, overly eager Compliance Officers and the Labcorp legal team will not allow pricing to fall below fair market value. Other illegal acts? I don’t think so. This isn’t the 1990s anymore.

“And finally, let's see what Covance looks like after a couple of years of LabCorp bleeding them dry.”

By all indications, it’s going well so far.

“The comment about Path Inc being purchased for it's management team, although a good idea, was meant to be tongue in cheek.”

I could usually detect subtle humor, but it sure didn’t seem that way.
Click to expand...

Yes I was right, you ARE a paid LC troll. Why else would you try to do the impossible. You cannot change history. There have been too many law suits settlements that have been made public. No matter how you dry to dress it up, it is illegal and the OIG is and has been all over you and we are not talking Quest. Quest cannot give you cover.

Truth be told, I could give less than a damn. As the saying goes, history may not repeat itself, but it rhymes. Time will surely tell.

As far as your sense of humor goes, you would have to be there. And if you are there and still don't get it, you are not nearly as smart as you think you are.
 






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