NXGN - CareCloud: The (Cheap) King Of Healthcare SaaS

• CareCloud is a provider of cloud-based solutions to healthcare providers in the U.S.
• Competitive advantages are cheap labor costs due to most workers being active in cheap off-shore countries, and its resources and capabilities to turn synergistic acquisitions into profitable investments.
• Its product offering, through acquisitions, enhancement, and product efficiencies, has become very attractive in both quality and price aspects.
• Large investments in marketing and sales, and a high growth rate of the large-sized healthcare IT market should further boost the organic revenue growth of CareCloud.
• While all these factors make me confident in future high-growth of revenue and net income, the P/S ratio is not even 1, with a gross margin of 40%. Hence this excellent growth stock is very cheaply priced as well.

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