Comments on: Monday Morning Update 6/11/07 http://histalk2.com/2007/06/09/monday-morning-update-61107/ Healthcare IT News and Opinion Thu, 18 Mar 2010 00:28:59 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Zach http://histalk2.com/2007/06/09/monday-morning-update-61107/comment-page-1/#comment-13 Zach Mon, 11 Jun 2007 15:47:13 +0000 http://histalk2.com/2007/06/09/monday-morning-update-61107/#comment-13 For what it's worth, I raised the issue of QSI having no better use for the capital in my response to Inga: "Companies pay dividends for a number of reasons. Two of the foremost are 1. To return retained earnings to shareholders when the company believes that it cannot find a better use for the capital, and 2. To raise the share price if the company thinks its market valuation is too low. My guess is that QSI's circumstance is the former." Unfortunately the entirety of my response could not fit into the paragraph or so allowed. The full text is posted here: http://zachmortensen.net/2007/06/07/qsi-dividend-analysis.aspx The excerpt that Inga posted deals with the reasons why a software company might arrive at the point where R&D is no longer a good investment of its resources. This issue is poorly understood in the industry and merits further discussion. And as TG pointed out, regardless of the reasons behind the dividend, it clearly signals the end of the company's growth phase for the aforementioned reasons. ZM For what it’s worth, I raised the issue of QSI having no better use for the capital in my response to Inga:

“Companies pay dividends for a number of reasons. Two of the foremost are 1. To return retained earnings to shareholders when the company believes that it cannot find a better use for the capital, and 2. To raise the share price if the company thinks its market valuation is too low. My guess is that QSI’s circumstance is the former.”

Unfortunately the entirety of my response could not fit into the paragraph or so allowed. The full text is posted here: http://zachmortensen.net/2007/06/07/qsi-dividend-analysis.aspx

The excerpt that Inga posted deals with the reasons why a software company might arrive at the point where R&D is no longer a good investment of its resources. This issue is poorly understood in the industry and merits further discussion.

And as TG pointed out, regardless of the reasons behind the dividend, it clearly signals the end of the company’s growth phase for the aforementioned reasons.

ZM

]]> By: Billy Bob http://histalk2.com/2007/06/09/monday-morning-update-61107/comment-page-1/#comment-12 Billy Bob Sun, 10 Jun 2007 15:34:27 +0000 http://histalk2.com/2007/06/09/monday-morning-update-61107/#comment-12 No worries, Inga. TG was referring to Zach, I think. I agree with you. They should use their resources to create a better company instead of paying off investors in celebration of the one they have. No worries, Inga. TG was referring to Zach, I think. I agree with you. They should use their resources to create a better company instead of paying off investors in celebration of the one they have.

]]> By: Inga http://histalk2.com/2007/06/09/monday-morning-update-61107/comment-page-1/#comment-11 Inga Sun, 10 Jun 2007 01:08:36 +0000 http://histalk2.com/2007/06/09/monday-morning-update-61107/#comment-11 Gosh TG..."You IT guys really need some business fundamentals." I am crushed...as Mr. HISTalk pointed out, I am the one who posted this, not him. And, believe it or not, I am an MBA, and not just another pretty IT face (in fact, IT is not my expertise!) Anyway, we are in agreement...NextGen has a bunch of cash, is closely held, has a relatively advanced product. They don't have have a better user for their cash and/or can't figure out a better use. My new best friend Zach stated that more R&D might be too costly, and, that the main stake holders have the most to gain from dividends (which all makes sense to me.) Readers, I have a fragile self-image, so limit your slamming to Mr. HISTalk... Gosh TG…”You IT guys really need some business fundamentals.” I am crushed…as Mr. HISTalk pointed out, I am the one who posted this, not him. And, believe it or not, I am an MBA, and not just another pretty IT face (in fact, IT is not my expertise!) Anyway, we are in agreement…NextGen has a bunch of cash, is closely held, has a relatively advanced product. They don’t have have a better user for their cash and/or can’t figure out a better use. My new best friend Zach stated that more R&D might be too costly, and, that the main stake holders have the most to gain from dividends (which all makes sense to me.) Readers, I have a fragile self-image, so limit your slamming to Mr. HISTalk…

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