repost retiredcf post Keystone FinancialCheck out Stock B
Post by
retiredcfon Jun 20, 2024 3:55pm 
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Post# 36098683
Mystery Solved
For those who are wondering why the SP recently took off, here's your answer. I received this email a couple of days ago and did some digging. As you can see, WELL is the first of Keystone's two new picks. GLTA
Extract from WELL's latest results: - WELL achieved record quarterly revenues of $231.6 million in Q1-2024, an increase of 37% as compared to Q1-2023 driven by acquisitions and organic growth of 13% which includes growth related to our clinic absorption program.
- WELL achieved Adjusted EBITDA(1) of $28.3 million in Q1-2024, an increase of 6% as compared to Q1-2023. WELL's Canadian business grew its Adjusted EBITDA in Q1- 2024 by 19% to $14.6 million on a YoY basis.
- WELL achieved Net Income of $19.6 million or $0.06 per share in Q1-2024 as compared to a loss of $10.6 million in Q1-2023 and Adjusted Net Income (1) of $20.2 million or $0.08 per share, 43% higher than Q1-2023.
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This past Fall, KeyStone recommended two unknown, cash-rich profitable Canadian Small-Cap stocks trading at very attractive valuations – both stocks have already gained over 110% (I provide quick updates on both stocks near the bottom of this email).
Today we release two new BUYs.
Stock A – New BUY Recommendation:
An unknown, cash-rich medical technology equipment company which just reported breakthrough profitability:
- Strong Sales Momentum: Product revenue increased 37% in the last quarter.
- Huge Earnings Turnaround: EPS jumped to $0.06 from a loss of -$0.03 in its latest quarter.
- Net Cash Balance Sheet: $7.2 million in cash and no debt.
- Fundamentally Undervalued: 40% below fair value.
In the company’s quarterly conference call management stated that the combination of high revenue growth, expanded operating margins and reduced operating expenses propelled the business back to strong profitability. The company reported that the business is building momentum and management is very optimistic about the remainder of fiscal 2024 and beyond.
Stock B – New Buy Recommendation:
An underfollowed, cash-rich clean technology company with a record backlog – positioned for record 2024 revenues and earnings:
- Record Backlog: Bidding activity and backlog ($52 million) remain at historic highs.
- Strong Growth: Revenues up 87% in Q1 with EPS jumping to $0.022 from a loss of -$0.036 in Q1 2023.
- Low Valuations: Stock trades at 10.2x its trailing EPS and with an adjusted EV/EBITDA of 6.29x, which are both below its 5-year averages.
- Fundamentally Undervalued: 49% below our fair value.
Management recently stated that bidding activity remained strong through the first quarter and that the company expects to report significant new bookings in coming months which may bode well for growth into FY 2025. Despite the strong balance sheet, record backlog, and revenue and EPS growth, the stock trades at just 10x trailing EPS.
Another undervalued small-cap with excellent growth that can be found nowhere else.