RE:VMD trading down because in my opnion..... Thanks soft bash risky - Anyone who understands te company and business can easily answer te questions while reading between the lines. I am repsonding for the others, not you.
1. Zero guidance given. (what do they know that we don't. ) aim low and shoot high...Casey reiterated that we can expect simialr growth as last year.If Casey says expect 40% growth and they hit 38%, he misses the target. If he says not sure and hits excellent growth or earnings, he looks like a superstar.
2. Shorts cover prior to CC and are now reloading. (stock tanks) 100K shares traded after the CC. Whatever!
3. Hoyt will not aggressively grow company through aquisition, but slow organic growth. 40% is slow?
4. Hoyt said, they will not have to pay tax, because they have no taxable income. ( So their income/cash flow will always be zero or leaa, through buy purchasing new equipment.) They have a strategy and it works.
5. As with other health stock, bad debts will always issue, due to the nature of the business. (hard to collect from dead families and terminally ill) Earning 40% EBITDA after bad debt has also been an issue...healthy profitable business isn't it.
6. Unknown of the effect, of being a small split company will effect S&GA expenses. IE listing expenses, CFO, seperate board, admin office etc etc....Small company at ~$60M CDN revenues per year and growing at 40% per year. They are in control to spend money wisely. They have been ultra profitable and growing at this rate for years. .
7. Company is tiny with bad history, thus no analyst coverage nor institutional interest. Not tiny and PHM had the baggage. You may recall that they split 2 months ago and they have not promoted...so how would they be covered.
8. Previous institutional and PP placement investors burnt by unpredictable rate cuts, thus leary rates are not at risk. PP holders have VMD to grow and surpass initil investments. Unpredictable rate cuts were certainly unpredictable......buy low, sell high as they say. You are bashing a company that has appreciated 60% in value from old PHM value in two months and should easily command $7 to $9 wihtin 1 to 2 years.
9. Hoyt saying he has no idea whether CMS/Medicare rates could be cut again or not. Soes anyone know this???? Trump budget shows medicare cuts of $240B over 10 years which is equal to ~3 to 4%. Can 40% EBITDA handle a 3 to 4% rate cut???? answer is yes very easily. The stock is trading at a sever discount based on the medicare wild card. Received a 35% haircut in 2016 and the worst is over. Breath act will reinforce as well.
10. US Gov't mandate to cut medicare budget, due to massive tax cut,, hang over the stock. See above...I would bet less than 5% which would launch the share price in my opinion as the fear is that there would be another massive cut...likely not the case.
Read more at https://www.stockhouse.com/companies/bullboard?symbol=v.vmd&postid=27611010#XfyAbEfTEerXvmZJ.99