RE:the short/bear casespeedy99 wrote: It is always good to know the short case for the stock you are invested in. In the absence of any intelligent articulation of that case on this board I offer my own thoughts (keeping in mind that I am long WELL, overweight WELL, and have never sold a single share of WELL, and do not intend to)
1. The price/earnings measure for WELL is non-existent. It has no earnings. Its earnings are negative. On a per share basis its earnings are negative. And the results of 3rd quarter indicaste earnings loss per share are expanding. (Projections for earnings per share prior to 3rd quarter release were ZERO, so we had a miss on that measure.
good write up, speedy99.
just a comment on point #1 - the P/E of WELL has zero bearing here and every single investor knows this. WELL's negative net income includes non-cash expenses (Dep/Amort) and one-time expenses (ex - Acquisition Costs that aren't recurring).
if you look at their reconciliation of Adjusted EBITDA you can decide which add-backs are appropriate (one-time items, etc) but there is no denying that WELL has a huge Depreciation & Amortization Expense. it was $16MM last quarter - if you add this back, the company's Net Income is positive versus the accounting loss of ($10MM) which was shown. that's without adding back anything else.
WELL's Depreciation/Amortization also has nothing to do with Assets which need to eventually be replaced, either. so it's not a true "expense". it's amortizing of CRH's vendor contracts.
this is not an unprofitable or cash-losing company!