Possible value from part of the latest contract... Moving right along from conspiracy talk, I'd just like to point out that the latest announced contract all by itself could add a lot of value to the company. If, as many of us (including the company itself) suspect, collections won't be an issue with SNFs, then the latest contract signings, which include 20 SNFs, could add, after year one only, something like this to fair value...
30k patients x US$65/month x 12 months x 1.3 forex x 10 price/revenue divided by 220M shares = CAD$1.38
And, as I mentioned, that's just after year one. SNFs are the gift that keeps on giving.
Yes, on one hand there might be less compliance and adherence than anticipated, but, on the other hand, this figure doesn't include the following:
- Any one-time revenue from the 20 SNFs mentioned above
- Anything from the other 234 SNFs signed up
- Contracts with large systems
- Deals with physician practices, etc.
- Anything from Cognizant
So, let's let them clear away a couple of bottlenecks and see what happens. So far, with very little if anything in the financials from SNFs, the numbers are starting to look pretty good and the company is profitable.