RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:WE NEED a MIRACLELarryBird wrote: I would very much like to know that if we take CRH out of the WELL formula, what are we left with ? In terms of " fundamentals" and balance sheet stuff ! CRH was around for many years and it did not have a spike during the time when every single stock spiked. Can someone please explain what's so special in CRH that we expect it to change the Canadian Healthcsre system ? WELL has a number of Sub companies... so if we are making such claims as comparing it to the way Ford changed the Auto Industry... we must be able to specify exactly which sub company of WELL is going to change the entire landscape. Educated answers please.
the company is not innovative at all so I am not sure why that comparison is being used here.
here is a quick recap of the company I posted awhile back. things at Circle/WISP have improved since this time. this post also includes links to very detailed posts whereby I break down what CRH does.
https://stockhouse.com/companies/bullboard?symbol=t.well&postid=34554733 CRH/MyHealth are established cash compounding businesses with track records of bolting on small tuck-in acquisitions to grow. CRH has completed 40+ acquisitions and I think MyHealth is around 30. it is extremely important to note that because both companies have senior bank debt, cashflow at these opco levels
cannot be used in other areas of the company. they can't take funds from these companies and use it for something else. the cash can't fund WELL parentco overhead and their credit lines can't be used for anything other than purposes under CRH/MyHealth. that is the bear case from many here - that WELL will need to continue to raise cash at the parentco level to keep operating. you also need to take into account that CRH has minority partners (see my writeup about how the business works) so WELL does not own 100% of the profits/cashflow under the CRH business. they report everything on a gross basis so you need to dig in and see what is actually attributable to WELL shareholders. the good thing is CRH/MyHealth basically drive WELL and these companies are self-funded via their cash generation + senior bank debt.
I suspect the recent capital raise will be used for something under CRH (purchase of a basket of ASCs, which would be immediately accretive) or for Circle/WISP as these companies are in hypergrowth and likely need need investment capital.