ZIX Corporation – Will Obamacare Drive this Stock up?
I stumbled on an interesting company called ZIX (NASDAQ: ZIXI) today. They have a 5 star Caps Rating on Motley Fools which caught my eye. One of the reasons this stock has been getting some attention lately is due to Obama’s Health Care overhaul. It’s possible that ZIX’s PocketScript service will be used by (or maybe sold to) major health care companies to deliver prescriptions online. The potential there is enormous. Here’s an excerpt taken from a Caps user who recommends ZIXI:
“Part of the health iniative is to move towards electronic prescriptions and medical records. Another part of this intiative is that these e-prescriptions and records must be secure.”
I can see why this stock is rated 5 stars on Caps. It has a tiny market cap of $136 million and trades at a mere $2.16 per share. If you consider the potential downside vs. the potential upside, I can totally understand why someone would want to take a gamble on this stock. Sure, Zix is losing money and there’s no assurance that Obama’s healthcare plan will actually get passed. But the potential is there.
The company also announced that they may try to sell off their e-Prescription service and hired Allen & Co. to explore that possibility. With the healthcare reform at the top of the agenda for many lawmakers, Zix’s e-Prescription business might be very attractive as an acquisition for another company trying to capitalize on that.
I feel the potential upside justifies the risk so I took a small gamble today on ZIXI and picked up some shares at $2.18. As always, do your own due diligence!
Uh, Zixi is in rumor to be an acquisition target. The stock will jump as a result of this and not necessarily as a result of the healthcare plan Obamas speardheading.
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