RE:RE:RE:RE:Good NRretired, I agree that VHI's relative anonimity among market-moving investors and its small daily trading volume almost always makes their PRs announcing new business irrelevant in terms of moving its share price upward. However, one could also interpret the low trading volume to current shareholders not putting the shares they own up for sale - if the vast majority of larger shareholders are happily holding on to their investment, the only shares available for sale on any given day are the tiny amount that small day traders or other flippers offer.
The other arrow VHI has in its quiver is its quaterly earnings reports, which reveal hard numbers re. increases in total revenues along with increases annual recurring revenues. However, if big market moving entities are ignoring the PRs announcing new business, they likely don't look at the quarterlys either.
Another option is for VHI to hire a PR firm to spread the word about VHI to large investment entities, but this obviously costs money and may not make much of a difference given its size, and I rather VHI use their cash to make smart acquisitions and/or increase sales personnel to generate new organic business in the countries in which VHI targets.
As I've mentioned in past posts, though VHI's share price has stagnated in 2021 and so far in 2022, I like the way it held up vs. other small cap healthcare and tech stocks in 2021, and I also personally consider VHI to be a lower risk company than many other names given VHI's careful, steady growth strategy and (IMO) great healthcare niche, so I think more peace of mind is of value too. I also believe the probability is high that VHI will eventually pay off handsomely for investors, but it could take some time for the market to recognize what this company currently has and will have in the future.
I am not in favor of any takeout by another firm or a private equity entity anytime soon (and I suspect VHI management feels the same) because:
1) I believe CEO Dan Matlow and others on the Board / Management feel there is still lots more opportunity out there for the company to grow both organically and via acquistion, further consolidate their market niche, and become a much bigger player. In interviews, Dan regularly talks about making future acquisitions and growing ARR, so I highly doubt they would consider a takout unless the premium was so excessively high that it signficantly overvalues VHI as it stands now.
2) I would like to see the company finish the job in growing its business and ARR to the point where it is the dominant player in its niche and the market recognizes what it's true worth is at that point in time and prices it accordingly. At that point, talk of a takeout at a handsome premium would be a good idea in my view, as I believe a takeout at a signficant premium is what will ultimately occur.
GLTA