RE:Desjardins comment on 6 healthcare stocks - cantechletterGreat post PI, much appreciated.
The analyst is suggesting THNK might start paying down debt with FCF in 2022. That sounds a bit aggressive to me based on where I'm forecasting free cash flow. Having said that I don't see any need for an equity issuance at this point unless they start doing acquisitions again (doubtful until / if the share price recovers). Still if FCF is stronger than anticipated or if the growth curve is more robust than anticipated, then the company once again becomes a juicy takeover candidate, and even if FCF is just breakeven for a while the current ~$60mm market cap has to be garnering some interest from private equity folks, maybe even a strategic (though not sure who that could be. Telus perhaps?). Management may find one day that a hostile takeover is being initiated at a price that gets a deal done and sees the leadership team ousted alongside largely worthless options (given the high strike price).