Here is my up-to-date of WELL - Main FACTS (little opinion)What I have on top of my head when thinking of WELL :
Key Points :
- 4th biggest operator/owner of clinics in Canada - Hamed seeks to become the 1st within the next two years;
- Over 700% organic revenue growth for their digital services in Q2 - for me it is a key factor of how WELL is positionning itself as a leader in that matters;
- No debt, liabilities are payables and amounts owed for acquisitions and defered acquisitions;
- Over 40 M$ of cash in hand as of now after raising 23 M$ and paying 5 M$ to acquire 51% of Circle Medical in the US;
- WELL is currently mostly located in the Western Canada (BC), and will most likely move towards Ontario in the coming quarters (through more acquisitions), Ontario will be a lucrative market opportunity, even Quebec;
- WELL raising money EASILY (through Li-Ka Shing), not even through institutions.
- So many acquisitions in the pipeline. FY and EY revenues will keep increasing, and there the Price too....
Share structure :
Hamed Shahbazi - CEO : owns about 18,5 M shares as of May 2020. No insider selling in 2020.
CIO,COO,CFO,SVP : own about 6,5 M shares as of May 2020. No insider selling in 2020.
Li-Ka Shing : hard to say, he owned over 11 M shares in May 2019, I'm guessing he must be close to 17 M shares as now (my best guess).
42 M shares owned by insiders and Li-Ka Shing, I know my interests are alligned with theirs and I also know that Li-Ka Shing is buying more at 4,77$, this means that he knows where this is heading, up North.
He already owns so many shares, he didn't have to. If he keeps buying, I'm buying.
Price targets :
Eight Capital : 8 $ / share.
Laurentian Bank : 7,25 $ / share.
PI Financial : 7 $ / share.
Echelon Wealth : 6.80 $ / share.
Paradigm Capital : 6.75 $ / share.
Haywood : 6,50 $ / share.
Desjardins : 5 $ / share. (raise of PT 1 month ago, has not taken into account new $$$ and new acquisitions).
As of Friday September 4th, 2020, 10 analysts covering WELL :
- 3 analysts = Strong Buy rating
- 7 analysts = Buy rating
Still very bullish, first week with school reopenings, already an increase in cases here in Quebec.
US + Circle Medical :
Here are some key facts and points :
- Circle Medical earn about 5 to 6 X MORE revenues through one telehealth appointment than WELL in BC (US medical fees are significantly more expensive than in Canada).
- David Kwan from PI Financial's states : the deal looks like low risk and highly attractive based on its profitability and actual revenues (not even taking into account the future and hopefully a growth in the EBITDA).
- Canada's healthcare is a 237 Billion $ industry which is outdated and NEEDS technology. Here comes WELL. Can't even imagine how big the industry is in the US...even if they had 20 Teladocs, there would be space for WELL in the US...
Sorry for the long post.
Feel free to give your opinions and facts that I have missed (I have missed some for sure).
Brigh future for the longs.
David