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Premier Health of America Inc V.PHA

Premier Health of America Inc. is a Canadian healthtech company. The Company provides a comprehensive range of outsourced service solutions for healthcare needs to governments, corporations, and individuals. The Company uses its proprietary LiPHe platform to lead the healthcare services sector in digital transformation to provide patients with more accessible care services. The Company operates through two segments: Per Diem and Travel Nurses. The Per Diem segment includes Premier Soin and Code Bleu, two of its Quebec subsidiaries that offer their respective services for nursing and assistance by profile and by region. The Travel nurse segment includes Canadian Health Care Agency, Premier Soin Nordik, Solutions Nursing as well as Solutions Staffing, four of its subsidiaries that offer their respective services to the federal and provincial governments for nursing and assistance, including in remote regions.


TSXV:PHA - Post by User

Post by Torontojayon Oct 30, 2022 8:17pm
181 Views
Post# 35058921

The bearish case

The bearish case

I'm going to play the role of a typical shorter who has no faith in the company and believes the decline in price is warranted. Ok let's begin. 


Premier Health Of America experienced the "covid" tailwind in the last couple years which explains the revenue and strong billable hours performance. In the coming years, revenues will decline and "normalize" on billable hours per worker. 


Premier Health made an acquisition of a company called CHCA with revenues of $34.5m of which an estimated $10.3m is covid related. That is approximately 30% of revenues derived from the "covid" tailwind. In the coming years we will see a major decline in revenues, ceteris parabus, from burnt out workers who wish to get back to a more balanced lifestyle. 


 

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