Future Trends + InsidersA recent article pointed out that the number of hours that Canadian doctors have to spend on daily paperwork is becoming overwhelming (eg. insurance and income assistance forms, medical reviews for drivers, disability tax credits). The hope is that more technology will be used in doctor's offices to further reduce the work. Would this benefit WELL? This is a big driver of WELL's future. It very much wants to digitize the medical field, and make doctors' lives easier. It has a number of projects, partnerships, pilot programs and developments along this goal. It is a long term process, and the industry is very slow to change, but WELL hopes to be at the forefront of some much needed changes.
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It appears that there has been significant insider selling over the past three months and that shareholders have been diluted over the past year yet earnings are forecasted to grow by 68%. Can you comment on its balance sheet and the quality of its management? Insiders own 11%. Because the company has done some financings, their position does get diluted with deals. We see a net 10% (not percentage point) change in insider holdings over SIX months. We like management which is why we liked the stock in the first place. The sector has had its ups and downs but we like the acquisitions the company is making and it has a long term approach. It had $52M cash and about $240M in debt as of the last statement (Sept 30). The stock has had a good January bounce and we do expect good earnings growth this year. (5iResearch)