Analyst & Media RX For Healthcare
Quality Systems (QSSI) is a leading provider of web-based healthcare practice management, medical records and e-business applications for medical and dental group practices.
QSSI enables redesign office workflow processes, improves productivity, reduces information processing and administrative costs, and utilizes electronic medical records to store and access patient information. With a small float and thinly traded stock QSSI found it difficult able to attract analysts and media. As a result, low trading volume and limited analyst coverage made for minimal institutional sponsorship, despite steady growth in earnings and significant cash flow.
How We Helped
Lead by senior counselor Bill Coffin, the plan called for an immediate increase in the company’s media coverage, revised its value proposition to highlight those areas where it was clearly an industry leader, and targeted a range of investors. These investors were focused on value and potential above average returns. This was done to compensate for the lack of liquidity in the company’s securities. These actions were followed by a series of road shows where the company’s CEO and CFO met with portfolio managers of buy side and sell side firms providing a range of metrics that the company used to measure success.
Within two quarters of implementing the plan, QSSI’s trading volume doubled, placing the company within the norm for similar-sized companies. In addition, coverage of the firm was started by three small cap sell side securities firms and it was invited to participate and present at four securities firm investor conferences.Within a year, QSSI securities had appreciated to a range attractive for a follow-on offering lead by a major securities firm. This action significantly expanding the company’s trading volume and liquidity.