From Beacon letter PHM experienced record setting volume yesterday with 30 million shares changing hands or over 10% of the basic share count. At its intra-day low ($0.78), PHM shares were down ~40% in the last 3 days and down 61% since its April high. We recognize that Canada is a “momentum” driven market and as such is prone to “pendulum” swings that drive the shares above fair value (April 2015) and significantly below fair value as has happened over the past few days. At its April high, PHM shares were trading at 29x the March EBITDA run rate. This was prior to the April $67 million financing (@ $1.50) that bullet-proofed the balance sheet, and the acquisition of Sleep Management, which is the largest ($42 million revenue), fastest growing (50%) and most profitable (42% EBITDA margin) of all the operating units of the company. At the intra-day low today, the stock was trading at 5.5x the July run-rate EBITDA level of ~$32 million. In a momentum-driven environment, fundamentals are ignored in the short-term. This will change and incredible value is now readily apparent. The company has never been in a better position with ~$60 million in cash, revenue and EBITDA run-rate ~$120/$32 million, expanding EBITDA margin profile (due to Sleep Management) and internal growth of greater than 25%. Those metrics would imply a forward EBITDA of ~$42 million. Based on a recent intra-day price of $0.99, that would imply a valuation of 5.8x versus a peer group average of 10-12x. Pending LOI’s of ~$15 million EBITDA would be further accretive, especially if done all cash, and push the valuation to even more compelling levels. We believe investors should “sharpen their pencils” on this name as the macro environment (aging demographics) remains very conducive to allow such aforementioned growth. Maintain