A Couple of Dynamics to note on the CRH dealThere has been a llittle said about just how much revenue and cash flow this deal will send into the books of WELL. I just wanted a little perspective so I looked at the last earnings report for each of these companies.
WELL reported 9 month revenues of $33 million and so for full year 2020 I extrapolated it to $50 million. The projection for 2021 is for revenues of $100 million.
CRH reported 9 month revenues of $70 million which I extrapoloated to full year 2020 revenues of $95 million dollars.
It is very important to note that these revenues and cash creation for CRH are down significantly from 2019 due to the Covid outbreak. Once Covid subsides this will mean revenue and cash creation from CRH will be triple or quadruple what WELL would do on its own.
CRH was hindered in its financing endeavors by this downturn in revenues. And the opportunity is now to make aquisitions while things are quiet in its core business. That is why this is a great opportunity for the shareholders of that company.
The big opportunity is made available by having an incredibly well heeled angel investor such as Li Kai Shing backing WELL. Take a look at this deal. The deal was announced 9 days ago. Today $320 million dollars of cash are already set aside in an account to pay CRH for their company...in 9 days...by a company that is only making 11million dollars a quarter in revenues currently.
Most owners of this stock have got it. When I started writing this blurb only 650,000 shares had changed hands today. Yeah , its a keeper. Even with these crude calculations it is so obvious.