PI FinancialStumbled into this from 1 Nov but it doesn't look like it has been posted. Unable to post the entire article so here's the link. GLTA
https://www.adviceforinvestors.com/news/canadian-stocks/canadian-tech-sector-never-stronger/ Canadian tech sector “never stronger”
PI Financial analyst Kris Thompson heralded the investment potential of a “never-stronger” Canadian technology sector. Looking back on the downward-sloping stock charts of the companies he covers since then, the analyst admits a tactical error but expresses continued faith in a tech turnaround.
“The first half of 2022 is a period that we hope to soon forget,” says the analyst. Mr. Thompson, based in Toronto and responsible for technology coverage at PI, says he had originally selected WELL Health Technologies Corp. (TSX—WELL) as a “top pick” (equivalent to a “best buy”) in the latter half of 2021 based on his investment thesis that health tech would “catch a bid again” after the COVID-19 pandemic rally and subsequent collapse.
“We were wrong,” he says, although he adds that, from January through June this year, the stock was “sadly” among the top-performing companies that PI Financial covers.
As of mid-July this year, the analyst noted, “The universe of health-tech stocks that we monitor is trading at about 40 per cent of the 52-week highs. Multiples now seem oversold in many cases.”
Mr. Thompson says, “The entire small-cap technology sector was decimated and there was nowhere to hide. Companies with strong balance sheets and break-even cash flow operating models outperformed growth stocks that rely on equity markets to finance organic growth and/or acquisitions.”
He argues, however, that health-related tech stocks are still primed for a comeback once the market turns toward growth-focused companies over “value” stocks. The analyst makes it clear he is not ready to throw in the towel on WELL Health, quipping, “The WELL is half-full, not half-empty.” He gives it a “buy” recommendation and continues to label it a “top pick” in addition.
WELL is a digital health company that operates primary and executive clinics in Canada and the U.S. It also operates a digital Electronic Medical Records (EMR) business, and provides digital health, billing and cybersecurity technology solutions.
Its CRH Medical subsidiary provides anesthesia services and a hemorrhoid banding product to clinics focusing on patients with gastrointestinal issues.