Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of health-care information technology company Allscripts Healthcare Solutions (NASDAQ:MDRX) are diving once again, down as much as 14%, after details emerged that a deal to auction the company off may still be far off.
So what: A report from Reuters earlier today indicates that Blackstone Group (NYSE:BX) has emerged as the front-runner in bidding for Allscripts. However, Blackstone is skeptical that a deal will get done given the high premium that Allscripts is seeking. Both Carlyle Group (NASDAQ:CG) and TPG Capital Management have also been interested bidders in the company.
Now what: I don't mean to blatantly say "I told you so," but I definitely did tell everyone so back in September, when Allscripts rallied in a big way after announcing that it would be seeking a buyer. It was very clear back then, considering its shrinking sales and rising development costs, that the company was in serious trouble. A sale is really the last option management sees to try to generate value -- that's bad news, and all the more reason to avoid this company at all costs.
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