Biggest move of October in my opinion - HumanaCare at 17M$ Does HumanaCare's acquisition at 17 M$ scare some of you?
Is 17 M$ too much for what they are worth?
The question I asked myself was, what is the cost to being a big fish wanting to eat all the small fish?
I did the math, using the exact multiple of HumanaCare acquisition, 17 M$ for 3,3 M$ in run-rate revenues (2020). That is a multiple of 5,15151515.
I am asking you right now, would you accept that a deal from TELADOC (big fish) offering a takeover deal of DOC's shares for 85 M$ for all the outstanding shares?
That would mean about 0,62 $ per share, because DOC's run-rate revenues for 2020 is about 16 M$. The answer would probably be no. Even if DOC doubled, the answer would be no.
In conclusion? Be wise. DOC made 3 amazing acquisitions, all different. Synergies will drive HumanaCare revenues higher because of the VISBILITY DOC has (look at PR, it is mentionned that revenues will increase).
DOC's SP as of October 16th was 2,75 $ share. As of that date, DOC had none of these events :
- Increased bough deal to 32 M$ because of the keen interest;
- New CFO Daniel Lee (see my last post);
- Canadian Medical Directory acquisition;
- Medical Confidence acquisition;
- HumanaCare acquisition.
Is it more intelligent buying DOC at 2,75 $ as of today (or Monday for example), or 2,75 $ on October 16th? Clearly, as of today, you guys know more, and DOC, in my belief is worth more today than on October 16th.
DOC >>>>>>>>>>>> in the right direction
Keep sharing your thoughts!