RE:Beacon Securities - Cantech letter
Good Overview. What I keep coming back to is the growth in virtual services revenues. 600 per cent year over year for 18 million revenues. One year does not make a trend, but the percentage increase does indicate significant growth. Will we see the same level of growth next year? not likely. 500 per cent? possible but not likely. 400 per cent? possible but not likely. 300 per cent? possible but not likely. How about just a double for 100 per cent? Maybe. But lets assume only 50 per cent. That means 2022 quarter would be 27 million and prorated over the year wouild be $324 million. That would be huge together with revenues from the Omni service part of the business. And recall that our CEO indicated they are funnelling profits from the more profitable but slower growing Omni service part of the business into the less profitable but faster growing virtual services. So given the 600 per cent increase 2020 to 2021 I think that 50 per cent growth is quite a reasonable projection. And if it happens we will not have to wait for third quarter results to see that development. It will become apparent with each quarter. Another way to look at it. Overall growth in telehealth is anticipated to be 26.5 per cent worldwide for the next 5 years. If we can match that level of growth just by tapping into the trend we will be doing fine, but add to that our own growth in this portion of our business and the percentage increase in revenues should be phenomenal.
Increasing revenues will ultimately drive our share price higher. Based on third quarter stats I am feeling quite confident. Regardless of games that may or may not be being played with the shares, ultimately if there are more people/institutions wanting to buy than sell, the share price will increase. And with the kind of growth in revenues I predict, the buyers will come. We just need to turn the corner from this idea that Well is a telehealth company and telehealth is yesterday's news.