RE:Objective question for longsAny question like this has an answer predicated on two things... First is the metric you use to value a company, and second is based upon holding window and target sale date...... If one is to use today's book value, or profit, and determine that the value of the company must match a multiple of one of those, than they will determine really that WELL is overvalued today.......... If today's price is compared against a predicted value 5 years from now, based upon potential earnings and book growth scenarios, then we have a chance to refer to it as undervalued today, compared to what we think is value will be 5 years from now.......... Myself, I'm long on WELL, and my average buy-in is MUCH lower than today's price. When I made most of my purchases, I would've considered it overvalued at the time, but undervalued for my holding window...... The Li-KaShing purchase at $9.80 last year, gives me confidence that the long game will see a share price higher than that, but I haven't a clue when, as inflation/quantitative tightening will definitely have a negative influence on the share price in the near term. I've only been holding WELL for a few years now, so in no way am I ready to move on based upon a small vibration up and down in price..... My price target won't be determined until I feel management has completed their growth plans, and only then do I plan on selling.
jdsd0517 wrote: This is a sincere question for everyone that is long and believes in the upside.
Present your case that WELL is undervalued. How did you determine that value?
With an enterprise value of $1.1bn, it feels more like WELL is growing INTO its current valuation, than it does that it is creating new value.
Given the conglomerate nature of the model and the disparate types of investments, a sum-of-the-parts approach makes the most sense to me. But given that multiples ascribed to medical practices, it is hard to see much upside (even with the growth).
I am asking for two reasons:
1. below $3, I think this might look interesting and I might buy some;
2. I am trying to spur a serious discussion, not the "rah-rah" vs. "poo-poo" that clogs up this board.