RE:I must admitTrytobelong wrote: I don't know if shareholders will regain their money, but in the next months (probaly years) the economy will be slow down and it will be very difficult for a company like well to stay the head outside the water.
Withstanding whether the current share price is good value or not (I think it is, but that's something that can be argued about), WELL's business has a natural shelter from economic slowdowns compared to most other industries.
Since the majority of patients needs are paid through private or public insurance, the revenues aren't derived from patient's discretionnary income but from patients needs (and the ability to meet those).
At the current share price, and considering they generate free cash flows (over $10M per quarter), the biggest hurdle and trouble for WELL is to manage its growth by acquisitions. If they want to invest more than the free cash flows generated, they need to dilute or issue more debt.
I highly dislike straight up dilution when the shares are this cheap (imo) because you need to buy other companies even cheaper. As a general rule, if the acquisition is purely funded through new share issues, I like the purchase to be at least 50% cheaper than the stock you issue (ie: if you're trading at 10x EBITDA and make a purchase through issuing shares only, then you would purchase at 5x EBITDA or less).
Anyway, I personnally don't think the main risk of WELL lies in an economic slowdown but more with the management of capital and purchasing highly accretive assets on a per share basis.