RE:Bruce Campbell interview - PHM mentioned
Thanks bigask BC: One of the companies that's growing from both an acquisition and an organic standpoint is Patient Home Monitoring Corp. (PHM:TSX.V). Its name reflects what the company is doing. It has a number of different monitoring systems that allow a patient to be tested for different conditions at home, and that information gets relayed to the patient's doctor automatically. "Smaller names have more ability to grow—to double, to triple and more. But you get more volatility with smaller valuations." This company has been very aggressive in making acquisitions in the last year, but it is also seeing great organic growth because it cross-sells to its customers. For example, Patient Home Monitoring might go out and buy a company that does Coumadin (warfarin) monitoring. It may find that a certain number of the patients it has just acquired also have diabetes, for which monitoring is very necessary and for which it already has a program. The company is able to cross-sell its services and increase its revenue on that basis, by providing more services to existing customers who have more than one disease indication that needs to be monitored. The model is to acquire a patient via acquisitions, then to cross-sell a number of other indications that can be monitored from home, and also to acquire small, reasonably priced businesses and then roll them up into one nationwide business. TLSR: This company's market cap has more than tripled over the past 12 months. By the way, I could say this about any number of the companies you own. Do you worry about some of these valuations, and about the profit taking that could occur? BC: Certainly we do. But in managing the portfolio, we're continually monitoring our position size. In Patient Home Monitoring's case, for example, we originally bought the name when the stock was significantly lower than it is now. We have had to trim our position to keep its portfolio weighting in check. As you implied, that could be said for quite a few of the names in our portfolio. That's typically how we manage things. TLSR: Will the smartphone, with specialized apps, enter into Patient Home Monitoring's business model? BC: If it could, I think Patient Home Monitoring would really like that functionality, because its larger costs cover the monitoring devices it has to buy. If the company were able to pay a software developer to come up with some type of app that could be on a smartphone, it would significantly reduce its hardware costs