Top Pick DetailsFirst stock in the clip; he and his family also own it personally. GLTA
https://www.bnnbloomberg.ca/video/stephen-takacsy-s-top-picks~2558049
NEIGHBOURLY PHARMACY (NBLY TSX)
A safe way to invest in healthcare in Canada.
NBLY is Canada’s third-largest pharmacy chain with 284 locations in seven provinces, mainly located in rural communities. Its strategy is to consolidate this still very fragmented industry and generate operating efficiencies while improving the top line like front-of-the-store sales. This is a recession-proof business with steady growth from aging demographics and new revenue sources from an increasing scope of practice whereby pharmacies can prescribe more medication to help alleviate the burden on the public system. The company did an IPO at $17 in early 2021, then rose to nearly $40 before settling back more recently in the low $20. They also did recent financing at $29 to acquire its largest competitor with significant insider buying. Since the IPO the number of stores, revenue and EBITDA run rates have doubled to around $830 million in sales and $97 million in EBITDA. The company released good results a few weeks ago with strong same-store sales growth and increased margins. In the low $20s the stock is now attractively priced considering its strong growth, margin and free cash flow profile, at around 11X EBITDA.
TOP PICK
Neighbourly Pharmacy Inc(NBLY-T)
06/11/2022 at 07:00pm
It is the third largest pharmacy chain in Canada. Is mostly in the rural communities and has a strategy to consolidate the fragmented industry in these areas and grow the top line. It is both a defensive and a growth stock. It has new revenue sources since pharrmacies can prescribe more medications now as well as offer more services. After its IPO 18 months ago, it soared then fell back to the low $20's, close to its IPO price. Had very good results a few weeks ago. It has doubled its revenue to $830 and EBITA to $100. Has good free cash flow and increased margins. There has been significant insider buying in the past few months. A safe way to play the health care system. Buy 6, Hold 3, Sell 0 (Analysts’ price target is $29.56)
Healthcare
Stephen Takacsy, B. Eng, MBA
$23.420
Owned