TSXV:RHT.H - Post by User
Post by
BigDan44on Mar 28, 2018 11:14am
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Post# 27794679
Ask Yourself: Has Anything Changed?
Ask Yourself: Has Anything Changed?The share price of 2.1 - 2.6 was not reflective of the earnings in 2017... it was reflective of the growth expectation and priced in a portion of the 51,000 patients in the pipeline as already onboarded, and contributing $50/ month.
Unless that pipeline has shrunk (unlikely given what it takes an institution to agree to something like that in the first place), I see no reason for the current stock action.
Either the pipeline has shrunk or management is not able to onboard patients... there has been nothing in the history of this co. to suggest that. Generally, management does overdeliver on their promises.
For people selling....why? There's no point even considering Amazon or competitors or anything of that nature when there are 51,000 patients already demoing the product.
At minimum, that's ~31M in yearly revenue (USD) or a conservative 38M CAD. Expenses are basically only related to mgmt comp (more or less and comp. is very easy to scale down). Assume 1.5x what they were in 2017 so ~9M. You have 29M in EBIT, say 23M in earnings (napkin math here). Thats 0.178 EPS or a SP of $3.6 with forward P/E of 20 (extremely low P/E for a tech/ growth style co.).
So with the current patients in the pipeline you have a SP of $3.6....so again, at a SP of 1.6 are people expecting only ~25K patients onboarded by 2019? What am I missing here (outside of the fact that this is napkin math)?