RE:RE:Comments / Upgrade G&M Oct 23If I may. It's been a slow month I believe, no big news ever since september. I don't see this as lack of enthusiasm, I believe WELL shareholders have a strong LT vision, more than with DOC, because of the less volatility in the SP.
We've reached recently quite easily the 1 B$ market cap mark, which I belive is an important step in our growth. More institutional outlook, possibility to move to the US side (ex. Nasdaq, NYSE), and also, reaching a milestone.
We are way past 1,20 $, if you base your analysis on the graph, it won't take you places. 3 months ago WELL was raising 11 M$, now we just closed 80,5 M$, we are not at the same place, revenue wise and financial structure. Ever since June 2020, we have been knocking faster the PT, and the analysts keep upgrading them, weeks after they were reached.
I share the same opinion, I don't look too much at the PT, but when you have 5-6 institutions that target their prices around 9-10$, I tell myself, they must not ALL be completly wrong.
I don't see them as modest, 8$ to 10$ is 25% upside, which is very good IMO. What are you hoping, 20$ PT?
What I see is with 100 M$, you can do alot. You can grow a lot.
Take for example this morning, 1,1 M$ acquisition for a company with 0,5 M$ (1 M$ * 51%) revenue run rate for WELL.
The return to increasing the revenue pipeline is a conservative 5-6X the revenues, therefore its a win-win for WELL, WELL is worth 3 M$ more with 1,1 M$ less in the bank (I know the transaction was with stocks too, but just to represent my point).
Can you imagine what can be done with 100 M$? Use 60 M$ of it to increase your revenue pipeline of 35 M$, use 5 M$ to solidify your product, your platform, your CRM, use 2 M$ to reward management, and acquire top executives, etc.
With the remaining 30 M$ ish, penetrate China, acquire clinics in the US, prepare 2021.
Fastforwarding to end of 2021, I truly believe we look a lot more like Livongo Health as of today, a 15 B$ USD corporation. That is about 19 times WELL as of today (CAD $).
Look back at 2019 for Livongo, after a FY2018 of 68 M$ in revenues, 35$ USD a share, market cap of 3,5 B$ USD, (4,7 B$ CAD). Well should EASILY hit the revenue stream 2021.
In conclusion, give me a 10$ PT for the short-term, I'm fine with that. I know that the long-term PT, can be in 3 figures, only a matter of time, years. 3-5 years.
Sorry for the long post.
Cheers