WELL Health Technologies Corp T.WELL

$325 million in long term debt

[starboy101]

With a debt/equity ratio of .60. An extreme amount of debt for a puny company like this.

Another reason to sell this POS!

[monty613]

can you explain why this is an "extreme" amount of debt? balance sheet leverage is the wrong metric to look at here as the company is asset light. WELL bought cashflow, not a company full of inventory or hard assets which are highly leveraged? loan to value on the purchases of MyHealth and CRH were both low (< 50%). both of the senior bank syndicates who lend WELL money look at

[jdsd0517]

You might be referring to a comment I made in early April where I said, inter alia, "For those that are sophisticated, I would keep a keen eye on this. There is low risk of insolvency, but juggling the cash might be tricky.  Especially if there are constraints around how the bank lines can be used. " or when I said "Bottom line?  They are going to need to raise more money.

[monty613]

I wasn't actually referring to you in my post, but a few other posters. I do appreciate your accounting background (?) and the fact that your posts are well thought out and that you are open to a reasonable debate.  I am no financial wizard and never claimed to be, but many here are hyper focused on EPS and Income Statement. I won't beat a dead horse but this company has a sizeable

[Capharnaum]

That poster doesn't have an accounting background. The mere fact that "insolvency" is mentioned seriously by that poster, even as a "low risk", pretty much sums up how much of a joke his posts are. No company that generates over $10M of cash flow quarterly (after interest payments) and an EV leverage of about 25% are at any risk of insolvency. This is a baseless opinion

[jdsd0517]

At the risk of sounding unfriendly, it is hard to take you seriously.  As I said in a previous post, you don't have to believe me.  WELL's own audit committee / auditors had them disclose that they assessed whether there was a going concern issue at the last reporting date.  That's new.  In any case, whatever risk existed has been allayed by the financing. The

[starboy101]

Excuse me! But where in my post did I say that the company is insolvent? Do not try to put words in my mouth! I merely pointed out that the company currently has a debt/equity ratio of .60, which generally for most companies be considered about double what would be considered favourable. In my opinion any company carrying a debt/equity ratio of .60 could be considered highly leveraged. Which

[jdsd0517]

You made some great comments there.  Thank you!  Everyone is better off when we have substantive dialog! Fair enough, agree to disagree.  I have seen founders sell their companies and only care about the cash up front.  As far as they were concerned, they took stock to get the deal done and didn't care a lot about whether there was a "loss" relative to the

[bandit69]

I already said the same re:cash.  We say the same garbage in different ways..... May 26, 2022 "How do you know that the previous owners didn't make out like bandits with just the cash? what did they have in to these stellar companies that WELL bought with their superior capital allocation skills (who also did a buyback a month before they diluted again)? Lol.  and the shares

[monty613]

that's probably because you seem to mostly follow micro cap penny stocks. have you ever heard of Constellation Software? Open Text? Alimentation Couche Tard? there are many more great serial acquirers out there. there are also many bad ones. prior to being acquired by WELL, MyHealth completed 30 acquisitions and CRH has completed upwards of 40. the roll-up model makes sense for this size and

[BigTT13]

@Monty613 .. enough with clubbing baby seals. Yikes! Appreciate you brother. GLTA

[bandit69]

Like I said, you see what you want to see but the scoreboard says it all.  :)

[jdsd0517]

Respectfully, you can't honestly compare selling 100% of a business with raising capital into a business.  They are different transactions financially, and more importantly, they are different transactions EMOTIONALLY for the founders (sellers). It's like the difference between your daughter going to college, and your daughter getting married.

[monty613]

they took ~50% of the purchase price in WELL shares. that is very different financially than selling 100% of your business for cash, or cash + VTB, and then riding off into the sunset. if they raised capital in the form of selling a controlling stake to a PE player, and then continued to run the business, how is that much different than what is happening here? the point I am making here is that

[jdsd0517]

The difference is that that when you sell a controlling stake to PE, the founders usually continue to run the business, as a whole business, and their economic interests are better aligned with PE investors (how do we collectively maximize the value of THIS business). When you sell to a "conglomerate", you run the business in a portfolio, in respect of the constraints required within

[monty613]

fair comments! I still think it is more closely aligned with a PE investment given the size of the MyHealth company in relation to WELL overall. the business here is really driven by MyHealth/CRH. I also think it's closely aligned with a PE investment because the ultimate exit strategy is a divestiture if they are successful in growing the business. MyHealth took a cash/share deal, versus

[bandit69]

Good grief, you really are dense.  I've never ever mentioned MyHealth in any post just regarding selling a business in general.  And yes, people "sell" their business as an exit strategy and as anojther poster pointed out there's a difference between selling a business and just raising capital for growth. And to say they're operating with autonomy is wrong. 

[speedy99]

The various components of the conglomerate do have absolute autonomy.  WELL has made that clear.  Your quote above suggesting that they only have control over patient care is misleading.  WELL health is a capital allocator in the same manner as Berkshire-Hathaway.   Hamed does not run the various business units; that is left to the managers how know best how to maximize

[bandit69]

You're even more dense.  Are you two related?

[speedy99]

OMG, I don't know why I bother.  You had said "That's your definition of autonomy", suggesting that the definition related to patient care only.  I was only correcting you on that minor point.  If I have misunderstood what you were trying to suggest, kindly enlighten us.

[bandit69]

your "correction" is wrong.  Those words were verbatim from their fluffy update not mine.  You're all blind.

[LarryBird]

They are related...  by both being insiders ... one far more senior than the other. But still related lol 

[monty613]

OK. maybe you've forgotten already between the multitude of penny stock bullboards you frequent, but the whole discussion was specifically about MyHealth's share consideration. you contended their WELL shares could be worthless and they'd still make out like bandits and you contended the sale was an exit and not a "career starter". speaking of dense - I'm not even sure

[bandit69]

You really should seek help for your passive aggressive tendencies.  Wrong yet again.  Where or where have I hyper focused on the revenue statement?  I've written here many times about how all 3 statements are linked...what happens on one affects the other 2.  You choose to ignore that because it suits your pride and I don't write detailed responses to your posts for

[parahyangam]

Inside G&A is where emoluments are buried. There is over utilization and no oversight. Not yet at least. Beware the forensic audit.

[LarryBird]

Agree 100% with your below assessment. Way too many assumptions are made on the business model and too much is based on CRH being the cashflow GOD that can finance WELL. A basic look at the CRH stock behaviour prior to WELL's takeover could be a sign that market didn't think much or CRH or at least the risks were not worth the reward.  It's also worth mentioning that the very same