WELL Health Technologies Corp T.WELL

It’s time for a turnaround!

[Realmattersbull]

We've all watched our P/S ratio drop down to a ridiculous level. This has been IMO due to many reasons. Small cap,no profit tech,Cdn stock,tax loss selling,dilution,no organic growth (until recently I hope) and most of all a in the future business that only high risk takers are interested in getting in on ground floor. That's about to change. Investors are just starting to see that the future is really close and the virus will be with us forever,like the flu and cold.
 Now WELL needs to concentrate on bringing new SaS customers into the fold. EMR, cyber security, telahealth, online pharmacy, women's descret online health services, are all multi billion dollar sectors and it's up to Hameds team to sell it WORLDWIDE. So get busy team before other companies scoop up our potential customers. Asia including India is where WELL needs spread its wings. The USA is important to but competition is fierce there. Asia has billion more people with no easy access to proper in person health care.
 With high interest rates on the horizon,beaten down value stocks like WELL will be the next rotations too buy stocks. P/E s and P/S valuation matters again and even FAANG + M will come back to historic valuations.

[jdsd0517]

I don't get it. This company has increased share count by over 75% since the beginning of 2020.  If they keep doing that, then even if they dramatically increase the value of the business, then the stock price is going to get knee capped by the dilution. If they don't, it's hard to think about a company that generates $8m of cash flow per quarter and has an enterprise value of

[Realmattersbull]

Yep ,dilution has been the biggest downfall of WELL SP. But....... They have gotten a premium of 9.80 and 9.30 for a big chunk of those shares issued from the CHR acquisition upto the present. Also Hamed has now publicly stated that large acquisitions are over for the foreseeable future and only small tuckins will be done. He also stated that organic growth is now the goal. Seeing the PR of 30

[Capharnaum]

When looking at operating cash flows, you should exclude working capital changes (mostly higher account receivables due to growth). If you do that, you're at close to $19M for the last quarter, $76M/year. At that rate, even at an EV of $1.4B, it's about 18x cash flows which isn't that crazy for their sector and growth rate. They also pre-announced a run rate of $100M EBITDA, which

[jdsd0517]

That's just plain wrong! When looking at operating cash flows, you MUST include working capital changes, especially those related to growing a business like AR.  These reflect cash that is consumed in that growth, and in many cases are a permanent use of cash.  This cash frees up only with improvement in working capital ratios.  If you want to exclude working capital changes

[monty613]

they are on a $500MM annualized revenue rate and $100MM annualized EBITDA run rate I think you're confusing the "virtual services" business NR which referenced $100MM in Revenues for that business alone a lot of noise in the cashflow statement because of acquisition costs,  but ultimately this company has a huge Depreciation/Amortization expense that is most certainly non-cash

[jdsd0517]

You are right, I am confused at this hot mess of a story!  I don't mind leaving money on the table to reduce uncertainty, so will have a look at this again when the next financials come out. Thanks for your thoughts/insights!

[Capharnaum]

For, you're just not looking at the right information... Straight from their Q3 release: "WELL expects to end the calendar year with proforma annualized revenue run-rate approaching $450 million and Adjusted EBITDA(2) run-rate approaching $100 million." My numbers were correct... The more recent news release likely point out to higher run-rates than those forecast in Q3. I

[speedy99]

I agree with those comments.  It seems to me that the kind of detailed analysis being presented, while interesting, is very difficult to impose on an early stage growth company.  I think we just need to be assured that we are headed in the right direction, so that we know at some point we will be profitable, and that the growth will continue.  Growing revenues is the way to capture

[speedy99]

jdsd0517 said "This company has increased share count by over 75% since the beginning of 2020.  If they keep doing that, then even if they dramatically increase the value of the business, then the stock price is going to get knee capped by the dilution.......What am I missing?" That is true.  At the beginning of 2020 we had approximately 118 milion shares oustanding.&

[jdsd0517]

Yeah, not so much.  I did not miss that they are growing by acquisition. The core question is whether they are growing VALUE PER SHARE.  If you understand equity valuation, then you know that this is different that increasing STOCK PRICE PER SHARE. Sure, you can look at revenue increases as a primary metric, but then you have to ask yourself questions about revenue quality.  For

[monty613]

their primary cash generating vehicle is CRH Medical - CRH generates high margin FCF and grows by acquisition via small tuck-ins of anesthesia clinics. the space they operate in is highly fragmented and is comprised of small, regional operations whereas CRH operates ion a national scale. CRH consolidates these and uses their purchasing power/negotiating power to boost margins. they buy 51

[CNuWellApple]

This new stream of pandemic investors that just cut their teeth during 2020 are now realizing that stocks can drop big time. I've seen so many get burned jumping in on a fast daily rise in SP trying to catch the bid up. Knowing when to sell is the pandemic investor -' PI 'as my advisor calls them- biggest downfall. The diamond hands moniker is for fools when it's a zero revenue