Quipt Home Medical Corp T.QIPT

Assessment

[retiredcf]

Added a few more today at $7.32. GLTA

Does the recent acquisition have a significant impact on QIPT"s prospects?

The company acquired (Great Elm) makes sense for QIPT, being a respiratory company with presence in eight states and 270,000 customers. At $80M it is a sizeable deal, but adds $60M in revenue and $13M in EBITDA. There should be $2M in cost savings and it is accretive to cash flow. The market likes the deal. We think it is fine; we might have preferred the vendor take more in shares, to ensure alignment, but on the other hand, a mostly-cash deal is less dilutive. Good earnings growth is expected overall and we think the stock looks decent for a small cap heathcare name. (5iResearch)

[Tropicalsun]

retiredcf, the thing that I have always liked about 5iResearch is that they typically don't own the companies that they research. That being said what does it take for these guys to give Kudo's when the company continues to fire on all cylinders. I would say that most investors, current and potential really like this deal, the markets as well. It's fine doesn't fit the bill and

[Carlito3311]

This post has been removed in accordance with Community Policy

[besttobe]

Carlito wrote "Remember GEHC was auctioned by the parent company via an investment bank.  It was sold to the highest bidder, QIPT.  They didn't get a bargain.  They paid fair to full value for it.  Its not magically worth double once on QIPTs balance sheet.  But thats what the analyst targets would have you believe." Correct. They paid fair value with debt

[retiredcf]

When they first got started, they were primarily focusing on Canadian stocks so employees are not permitted to hold any Canadian stocks to prevent any conflict of interest. In the last couple of years, they have been covering more and more US companies to the point where it is getting close 50% of their coverage. Employees are allowed to own US stocks but they always have to give full disclosure.&