RE:RE:RE:RE:WELL Health Technologies is a Buy, says Eight CapitalLarryBird wrote: CRH is a company that has been around for a long time. It's not a growth or Tech company and therefore should not be valued at 5x sales. I understand how WELL would use it to backfill it's Earnings but can't justify giving CRH a 5x sales valuation. Typically for a company to have such generous P/S validation, it needs to have serious growth ( not just bought revenue but organic type) and very unique technology. Please explain which of the two does CRH have ?
they have low single digit organic growth. the entire company's premise is built on joint venturing with doctors who want to sell a % of their anesthesia business to CRH. I would suggest you read some of my previous posts where I fully explain what their business actually is. see here:
https://stockhouse.com/companies/bullboard?symbol=t.well&postid=34363744 https://stockhouse.com/companies/bullboard?symbol=t.well&postid=34339794 it's quite shrewd as they are simply buying cashflows and do not have to pay the fixed costs of clinic ownership, unlike MyHealth and WELL's other primary care businesses. buy buying the anesthesia business, which is partly owned by the doctor completing the procedures, they ensure they remain the anesthesia vendor of choice for the clinic until the doctor dies/retires (with potential to pass on to next doctor who steps in).
the patented product business is a small piece of CRH, but high margin.
I would call this a growth business, despite the fact it's driven by roll-up growth.