RE:Working on something big...thelostarc wrote: WELL might be working on something big, a relatively large acquisition that is taking a lot of time to conduct due diligence. With all the cash on hand, free cash flow, plenty of room on existing credit lines and ability to increase credit lines as well, WELL would not be off the mark in picking up competitors/assets at these deflated market valuations. Healthcare is a highly sticky, inelastic part of the market.
I have been saying this for quite a while - they have lots of dry powder, have 2 solid cash compounding businesses, and have lots of available credit on the lines for CRH and MyHealth. both of these debt facilities have accordion features which allow them to be upsized, without a fresh credit application, in the event they are being used to make acquisitions. seems logical they would put this to work if they can make an accretive deal. wouldn't shock me to see MyHealth buy another diagnostic clinic operator in another province, or to see CRH pickup a basket of ASCs.
aside from a couple of these recent fluff NRs, the company has also been extremely quiet in Q1. they won't stay quiet for long.