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: Health-care information technology company Allscripts Healthcare Solutions (NASDAQ:MDRX) descended into investor purgatory yet again today, down as much as 17% after it announced plans to drop the idea of selling the company and a shakeup at the CEO position.
So what: According to an after-the-bell conference with Allscripts Chairman Dennis Chookaszian, a review of the company led the board to believe that exploiting the company's long-term potential is in the best interests of shareholders rather than putting itself up for sale. The company also announced the replacement of Glen Tullman as CEO of Allscripts with Paul Black, the former chief operating officer at rival Cerner (NASDAQ:CERN).
Now what: Pardon the blatant sarcasm, but, "Wow... I'm really shocked. Clearly, I had no idea more bad news was coming from Allscripts!" Actually, I had every inclination that no good news was going to come of Allscripts situation, and it's an idea I've been vocalizing for months now. The idea of a sale was a last-ditch effort to squeeze value out of a struggling business for investors, and with that now off the table, Allscripts is probably headed back to a 52-week low, with Wall Street once again focused on its shrinking sales and rising expenses.
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Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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