A new monthYou wake up in the morning and the stock futures are pointing down again. The S&P suffered its worst first half since 1970 during the past six months. RED, RED, RED. You listen to the business report and most economists and analysts are pointing to a grimm picture for the economy. CASH, CASH, CASH. Hedge fund managers are selling stocks regardless of the price. They just want stocks off their books.SELL, SELL, SELL. You turn on your computer and check your portfilio balance and its down again. CRY, CRY, CRY. You are bored and depressed by now so you click onto your favorite bullboard site. On the site everyone is negative on all your stocks. PANIC, PANIC, PANIC.
So now you are starting to wonder wether you should sell.( if you have not done so already). Thats up to you, but what I will say is that none of them forcast the big drop 6 months ago so why would you trust them now?
Now, turning to DOC. First thing I would say is if you need cash in the next 4 months you should probably sell now.
However I feel that the future looks fantastic!! Over the next 2 months I think that they will add at least 2 new board members. Karen will be announced as the permanent CEO and DOC will sell off their none core, low margin assets that would include the pharmacies and clinics. You should also expect to see VisionPros to start adding to their product line. Such as selling prescription glasses.
From what i see the clinics and pharmacies bring in about 40 million dollars of revenue yearly. I would guess that they work on about a 15% profit margin. That would be about $6 million. These businesses usually sell at about 4 or 5 times gross profit so I feel that they would sell for about $25 million dollars. Add that to the roughly $45 million that DOC has now and we get to $70 million dollars in the bank. The market Cap for DOC today is about $120 million. So you get all the 16 businesses that DOC bought (less pharmacies and clinics) for only a $50 million valuation. Remeber that inclues Mind Beacon, VisionPros, Medical Confidence etc...
And you are left with a company that has cash and will be cash flow positive in less than a year.
My last point has to do with all the hospital staffing shortages I have been reading about. But none of the analysts are saying that telahealth is the answer. Maybe they will in 6 months.
Change your financial future. Do it for your families future invest in DOC.