Archive for the ‘ACHI’ category

Accretive Health (ACHI) – A Transformational Hire

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A week ago, I sent out a note to my network highlighting Accretive Health as a special situation (posted yesterday here). In fact, I called it “the definition of special” because of all the issues the Company has endured over the past three years. In spite of those issues, I concluded that the Company still had a pretty darn good business. And the negativity surrounding the stock would erode as the investing community became confident that the problems were getting fixed.

So imagine my surprise yesterday – a mere seven days later – to learn that ACHI was able to land one of the most respected, influential people in healthcare as their new CEO (here). I was so surprised, in fact, that I almost spit my coffee onto my keyboard. Emad Rizk is so credible and so respected that I’m going on record stating: The hire of Emad Rizk is a transformational event for this Company. 

Here’s just a few of Emad Rizk’s accomplishments over the past 25 years:

In my mind, the hire of Emad Rizk completely blows up the bear case. Any bear case. And investors that continue to regard Accretive Health as untouchable are going to be proven very, very wrong.

Accretive Health (ACHI) – The Definition of “Special”

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Accretive Health (ACHI) is the definition of “special”. “Special” is in quotes because in this case, special is not a good thing. Actually, the Company is a complete mess. Just take a look at what’s happened over the past three years:

So to recap: We have a company with a lameduck CEO, no financials, trading over the counter. Now can you understand why I call this company “special”?

After reading all this, you might think the business is permanently impaired. You’d be wrong.