RE:QIPT Share Price projected upwards of 90% in 2022 Having too little debt is sub-optimal resulting in a lower ROE. Quipt's competitors -- Apria, Rotech and Adapthealth -- having much more debt in their capital structures.
CashFlowRanger wrote: https://seekingalpha.com/article/4472437
According to the article summary:
*QIPT shares started 2021 strong, but likely dipped due to multiple headwinds, including a warrant overhang and possible tax-loss selling.
*Two recent announcements should bode well for the stock as we enter the new year, with the distinct possibility that QIPT will be added to the Russell 2000 in June.
* QIPT’s AEBITDA guidance run rate means the stock is valued at roughly 5x forward EBITDA, with plenty of additional revenue growth opportunities and the prospect of expanding margins still ahead.
* While investors have previously been cautious due to the possibility of a capital raise to fund accretive acquisitions, the recent extension of their line of credit from $20M to $100M signals the company is prepared to use cheap debt instead.
* Based on my valuation metrics, I believe the stock could rally as much as 90% higher in the next six months, with the possibility of 230% returns over the next three years, with little downside risk.
Hold on to your shares guys and gals, and if you can, buy some more. QIPT is looking strong in 2022!