RE:Maintaining PerspectiveHey retiredcf, first of all thanks for all your contributions on this baord.
Though I will not be answering your question, but I will refer you to a website (wolffoalkville) who I franlly found helpfull and does provide a fair analysis on companis financial statements. His last analysis on WELL's earning was for Q2 and he gives it a socre of 3.5/5.
We should see his review on Q3 coming late this month or next month.
An overall (summary of Q2 numbes):
Anytime you experience sales growth but see a greater net loss and reduced operational cash flow, you have to deem it as a disappointment. You wouldn't know that from the very rosy press release, but I will point out that almost all of the metrics Well uses are adjusted numbers (Net Income, EBITDA, margin, and even Cash Flow) and shareholders to not see returns based on adjusted numbers.
Once again the most encouraging part of the release is the upgraded guidance, now expected to be in excess of $750M. Although they tout a YoY organic growth number of 15%, their QoQ number looks somewhat concerning growing by less than 1%. They had multiple new acquisitions in the June/July timeframe so the inorganic growth is sure to continue. What I still await is the conversion and necessary synergies to improve expenses and therefore profitability and return to shareholders. Maybe my expectations are high, but I feel they are warranted. Leadership, with their rich RSU and PSU program are certainly benefitting, but I as a shareholder want a bigger piece too.
Closer to downgrading than upgrading once again, but will maintain the 3.5 stars due to their updated revenue guidance, and feel there is still very good upside potential given the low sales/MC multiple.
p.s. I usually don't come to billboards section but for entertaiment, as it is hard to find insight info in here. Besides I don't (and no one should) make investment decisons based on what is written on billboards, but rather subscrtibed to two wealth management paid sercives (tsi & sa).
I am long on WELL as you. Each time the stock go below 4, I grab 2-3K., And I will be only selling (onlyt half) of my shares once the stock hits 10 Though, I think this company will eventually be bought out.
GL2U & All holders