RE:CloudMD Signs Definitive Agreement to Acquire South Surrey .Investor ignorance? DOC remains a high risk play that has yet to make any significant movement. While inking the SPA is positive, this deal was baked into current sp as binding term sheet was announced Jun 11. As an investor, you have to look under the hood, ask yourself exactly how valuable is the South Surrey clinic if they're willing to accept "potentially" 700k (i.e., final price may be lower but not higher) as purchase price and only 200k of that in cash. If South Surrey had a strong hand, they would have demanded a higher price, secured more than mimimum 200k cash, and there would have been interest from competitors, offering competing bids. Really, 200k (i.e., investors do not know exactly what hurdles the clinic must jump to earn the 500k in shares) for a clinic? This is not a purchase of signifcance.
Despite all the hopeful pom pom waving on this board, DOC remains a show me story. Though they seem to be making forward movement on the business end, it's negligible especially when compared to competitors. Where DOC seems to be devoting more resources is on the marketing end, devoting a fair chunk of dough to Facebook ads, paid newsletter writing, and now a minor new campaign with Octagon. As for analyst price targets, didn't Beacon and Canaccord underwrite the recent offering? People, come on, this is standard practice; underwrite a company then pump their stock with favorable sp target. About 90% of analyst price targets are positive b/c analysts are in bed with companies. While seeing a high pt on shares you own may make you feel good, the connection to future performance is not much better than crystal ball gazing.
More shares become free trading Jul 30, as well as shares issued to South Surrey. Then again, maybe share price is being held down to issue at lower price to South Surrey?
If DOC sp is going to trend higher, and assuming the fumes powering it's move into the 80 cent range have evaporated, then it's going to have to devote resources to building its business, and positive financial results, more than it promotes the future of telemedicine and its hope that the rising tide will lift the DOC boat. GLTA.