RE:this company will be soldHamed has said many times he plans to grow the company into a Canadian health technology bohemoth. Why would he sell for $1Bn when he and team can build the company up to $10Bn or $20Bn market cap... and have it become a stallworth of healthcare for decades to come? WELL will be a stable, free cash flowing, dividend paying company in 7-10 years and will be a cornerstone of most dividend growth portfolios. This is a lifetime hold, not a next year sell. These clinics and digital assets can serve patients year after year after year. As they do, the cash will pile up at ParentCo WELL and be used to make further acquisitions and eventually start paying a dividend for shareholders and buying back the float.
I have over 20,000 shares and plan to hold for the long run. The clinics aren't going anywhere, neither are doctors or patients. The cash flow from the clinics will pay the acquisition cost many time over, and kick back cash to invest in high-growth opportunities like Circle and WISP.
This is a crazy good business trading at half of fair value. As the company continues to serve and grow, it will be worth a lot more. A buy out at this stage makes no sense. Why sell your high growth company, why not keep re-investing in it to continue growing it?
$500MM revenue 2022... $1Bn revenue 2025... $3Bn or $4Bn revenue 2030. $10Bn revenue 2040. $20Bn revenue 2050.. that is just 28 years away... not a long investment horizon for a long-term minded investor (assuming time is on your side). Ther is a flywheel affect in the sense that the more revenue grows, the more free cash flow grows, the more they are able to invest and capture mroe of the market. Internal compounding is a real thing... but it needs time to give you really good returns. Give Hamed and team time...