RE:RE:RE:RE:DesjardinsYou are so correct thinkyourmoney, acquiring a major source of free cash flow cannot be understated here. First of all, WELL is a health technology company with an M&A strategy. That M&A strategy needs cash to execute, and the more cash flow coming in, the less dilutive to us shareholders the acquisition process becomes.
Second of all, this goes a long way to pushing WELL towards showing regular positive earnings growth, which will translate into terms that the institutional investors can understand in terms of EPS and EPS growth over time. Once that is obvious to the skeptics, their institutional risk will be reduced and BOOM goes the dynamite here.
We are taking part in something very big here, and it is still very early on in the grand scheme of things. Do not be surprised if we start discussing Nasdaq/NYSE very soon, especially as we expand our footprint into the US.
Cheers!
thinkyourmoney wrote: From what I understand from reading up on the acquisition of CRH is that it was bought not just as a medical addition but more because it is a cash cow. With lots of cash coming in WELL will not need to finance M&A but it will be done with the FCF created from the solid business of CRU.
What should become clear is whether WELL bought a regular cash cow or a blue ribbon cash cow. The initial reports from WELL management is tthat they have bought a blue ribbon cash cow and this quarterly report should make thiis clear to all investors.
We also have the added bonus that WELL also needs to report in the next 3 weeks so we get not one but two reports from different perspectives on this deal and on the impact that this acquisition will have on the future of WELL.
This is on top of the most recent acquisition announcement.
GLTA