Welcome to the RodeoIt has been refreshing to find the financial gem of the virtual/ tele health sector. It was pretty obscure and was pretty much ignored by the financial reporters and analysts. That time seems to be over and along with them come a herd of market manager/manipulators.
One thing I have noted in the new age of computer trading is that there are algorithms that go out in the second half of just about any given month and search for any stock that seems to have made its owners too much money. It could be profit taking or I don't know what the motive is as a lot of that sort of thing does not make much sense in the short term. It is what it is. It seems the 2 stocks I know in this sector are now on the radar of such "bots" and if you make too much in the first half in the month they sure work it that you don't have it all at the end of the month.
However, when business are growing and trending up, for the regular trader it is best just to ride it like a bronc or a bull at a rodeo. Right now they seems to be giving us a pretty good shaking out to see who has put in stop loss provisions or who will wet their pants and sell.
"Looking forward I notice one line from the Dejardins article that really stuck in my mind. I have noted in previous posts that the big boys do not give a company $110 million unless they know where it is going. This is where the paragraph confirms exactly what I was saying.
"In his coverage resumption, Newman said the new funds should bring WELL up to more than $100 million in dry powder to serve its M&A purposes, which include over ten signed LOIs and could boost the company’s run-rate revenue to about $100 million by the first quarter of 2021"
WELL got their financing because they could show that they had 10 signed Letters of Intent from potential acquisition targets who are willing to bring their viable business into the WELL umbrella of companies. That means they have looked at the target's books and know that the potential to add to WELL's positive quarterly and annual financial results are confirmed.
So hang on for the ride or do what you do. The potential of this stock to outperform is quite incredible even with the white noise added to the marketplace.