RE:CRH. Why is it not propelling the stock Mr Market can be a blockhead sometimes.
On the positive side the nmbers are just mind boggling.
WELL's Revenues go from a base of 50 million to 156 to 170 million combining WELL's 2020 revenues and CRH's 2019 and 2020 revenues. Note that CRH revenues dropped last year due to the dynamic that CRH core cash business requires personal interface between patients and doctors and Covid slowed that business down.
Cash from operations for WELL goes from 2017 to 2020 of -1/-1/-3/-5 million where CRH brings cash from operations for the same period of 36/41/45/36 millions. With 50% of US adults vaccinated at least once, that means business and cash flow should return to 2018 and 2019 levels and higher.
Total assets for WELL go from $263 million to $455 million on closing.
For businesses growing through M&A all of this is golden.
The budget and the balance sheets are much better in the combined company. And there no shortage of targets for takeover for this new entity.
One thing that Economics teaches you is that forces can try to hold back a tsunami of market pressure only for so long. Well run businesses will eventually break any damn and drown any who try to stop rewarding the progress of successful enterprise. First quarter earnings may be the trigger. Even closing on Thursday may be the trigger. I thought it might have been Shrove Tuesday...silly me. The point is that it is a matter of when it will happen rather than if it will happen.