RE:The bearish case Although I am not bearish on PHA, here are reasons that I can come up with that might create a bearish case to echo your comments Torontojay:
1.Concern about decline in revenues: MD&A sets out expectations of a soft summer in terms of hours billed. Inverstors don't like uncertainty, and don't know if this means a large decline in revenues (and associated profitibility), and where the equilibrium will settle out.
2. Concern about ability to service debt: Interest rates have risen substantially which means their service costs on their debt have increased by about $0.5+ million per year (according to the MD&A). There might be concern that if interest rates continue to grow, this might substantially eat into profitibility and margins, and their ability to acquire other companies.
3. There is a nursing shortage along with shortages in other supportive roles in the sector. This is going to put upward pressure on costs as salaries have to increase to attract the personnel.
These are three points I can think of if I were presenting the bearish case. (Please correct me if any are inaccurate.)
What does the company need to do in order to gain confidence in the average investor who is sitting on the sidelines?