RE:RE:CRH Growth Enginesbandit69 wrote:
My point is that I wouldn't count on a patent to sail a ship. At all. Ever. Maybe the product will survive the patent but, there will inevitably be competition if there isn't already.
I was also good friends with a doctor that had his own practice/clinic for over 40 years. He has passed away but was a very well known and respected doctor. He was clear there was little money in a clinic.
As I said before, only time will tell but I can see this floating downwards. 2.50 - $3 will not surprise me at all at some point especially in light of the patent information.
it's a syringe that deploys a rubber band. it's not one of a kind and there are already other competitors and similar products. they are not hanging their hat on this one patent. like I said, this only represents $10MM-$15MM of the entire businesses revenue. they are looking to scale it through all the GI doctor relationships they have and through their own MyHealth channel. it's incremental revenue only, not the base of the company.
https://physicians.crhsystem.com/order-product/ligators/ sorry to hear about your doctor friend but the good thing is that WELL's business is largely specialized medical services (MyHealth) and a GI anesthesia vendor business. both have very different margins from primary care. CRH especially as they are simply a vendor of anesthesia and don't have the same overhead as a medical clinic.
only time will tell but I don't see it at $2.50-$3 equity value per share based on what they have paid for the assets, the growing virtual services side of the biz, and the fact that companies like CRH/MyHealth are stable defensive healthcare. let's forget the Interest and Taxes piece of EBITDA - I am still struggling how you cannot agree with the notion of one-time expenses or non-cash Depreciation/Amortization expenses ($16MM expense last quarter). both are meaningful when looking at the true profitability of WELL.