Quipt Home Medical Corp T.QIPT

My two cents

[KiwiWonderland]

Below is the Sprott Canadian Fund July commentaries about PHM, and you can read from this link https://www.sprott.com/media/335426/sprott-canadian-equity-fund-monthly-commentary.pdf

"The other large detractor in July was our investment in Patient Home Monitoring. This position cost the fund 2.2% in the month. Our interest in PHM stems from the company’s plan to participate in reduced healthcare spending in the U.S. and help service a growing population of unhealthy, aging U.S. citizens. There is no doubt that the ‘wind’ was at the sail of PHM as both regulatory and demographic tailwinds were supportive of the company’s business plan. Although acquisitive growth is interesting to investors like us we find it even more important once a business can demonstrate a steady state of organic growth. We believe we are on the cusp of significant organic growth at PHM. So what has gone wrong?

PHM has been led by two former private equity investors with extensive backgrounds in the U.S. healthcare industry. Since entering the company in 2010 and taking on a more active management role in 2013, this group has successfully built a large specialty healthcare services organization that we expect to generate a sizeable base of free cash flow and healthy organic growth. The business model is unique, especially to those Canadian investors looking to participate in a surging U.S. healthcare industry. Recent confusion over the board’s insider ownership and curious relationship with a newly formed closed-end healthcare fund has created a great deal of volatility in the shares. Although there are many reasons as to why insiders sell shares (and we are sympathetic to many of these reasons), the lack of clarity and communication with investors is unexplainable. At some point we believe that the fundamentals should overrule insider selling and poor investor communications and the shares will likely recover some of the losses. "

Unfortunately Sprott weighting still shows as June 2015 instead of July numbers. I think institutional investors have calmed down and now penny flippers are trading PHM as you can tell from the volume. PHM is oversold here; however, new CEO needs to show he can do deals as previous management and improve earnings in the next few quarters to regain investors confidence. I believe PHM has tremendous growth and future ahead.