Why Accretive Health Inc. Shares Slumped

Before you go, we thought you'd like these...
Before you go close icon

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 Accretive Health , a provider of revenue cycle management services to the health care industry, dipped as much as 13% after announcing a much anticipated business update.

So what: According to Accretive Health's press release, it's filed form 12b-25 with the Securities and Exchange Commission that it expects to complete its financial restatement process and have them refiled by March 19, 2014. At the heart of these restatements is the way that Accretive Health recognizes revenue, as well as a lawsuit from the Minnesota attorney general which only complicated matters. In an effort to improve shareholder value, Accretive Health also authorized a $50 million share repurchase program.

Now what: That's right, folks -- Accretive Health hasn't reported its results for about a year no,  and it still needs an additional four months before it can do so! It's not hard to understand why investors are so disappointed with Accretive's announcement today. Ultimately, without any earnings reports we have no way to gauge how strong the business is performing or if this negative PR has hurt its underlying revenue cycle management business in any way. Until we get those restatements, I don't believe there's any reason for you as an investor to even consider buying into this company.

One company whose growth is on display for the world to see
Although Accretive may be dropping the ball when it comes to delivering its quarterly results, this incredible tech stock, which is growing twice as fast as Google and Facebook, and more than three times as fast as Amazon.com and Apple, surely isn't. Watch our jaw-dropping investor alert video today to find out why The Motley Fool's chief technology officer is putting $117,238 of his own money on the table, and why he's so confident this company will be a huge winner in 2013 and beyond. Just click here to watch!

The article Why Accretive Health Inc. Shares Slumped originally appeared on Fool.com.

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 . Try any of our Foolish newsletter services free for 30 days . We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights  makes us better investors. The Motley Fool has a disclosure policy .

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

People are Reading