WELL Health Technologies Corp T.WELL

still on the fence here , uncomfortable

[Possibleidiot01]

My problem with WELL is not that there's money to be made here but simply that there are  many shares available , SH says 228.17 million shares to be bought and sold .
I have a preference for companies with smaller floats where good news is not negated by people taking profit  , people frustrated by a lack of profilt ,or giving up and taking a loss.

The balance between a tight capital structure and liquidity

• Insight
• 7 April

There is a fine line between having a tight capital structure and one that promotes free trade of a company’s shares. Both have their attractions and their pitfalls.

A tight capital structure means that there are not many shares on issue. If investors are keen to buy your shares and there are not a lot of them around, there is the potential for the share price to increase based on a lack of supply.

This can also be the case where a company has a number of shareholders that are long term holders or ‘sticky’ shareholders. Once again, if there are less freely traded shares available, it has the potential for share price gains in the event of buying interest.

On the flip side, a tight register means that with fewer shares available to freely trade, the number of shares traded is usually lower. If shares are traded infrequently or by a small group of investors, it will be difficult to atttact mainstream investor interest and share price movement.

Another aspect of having lower liquidity due to infrequently traded shares and/or tightly held shares is an effect known in broking circles as a ‘honey pot’. This occurs where shareholders are introduced into the stock through a secondary placement but then find themselves in a situation where there are not enough shares traded for them to easily exit the stock down the track.

As noted at the start, it is a fine balance. Ideally, you don’t want to end up with billions of shares on issue and a share price in the cents that is hard to budge. Similarly, you don’t want to a situation where your share price doesn’t move, even on the back of good news.

For companies with limited liquidity, it is not something that can be simply wished away. It requires a well planned management strategy to rectify and manage for the benefit of all shareholders. Anything else is simply a willing disregard for shareholder value.

[ageorgi4]

Great read   . Using that criteria WELL is perfectly positioned to attract the best of both worlds. 

[Noshortsallowed]

Yeah this is not a concerning issue for me anyway. Actually the very high liquidity would attract big investors which is what you would want the in the stage of the company we are in..

[Nextlegup]

PI If that's a concern for you...you should probably start working on an exit strategy...to each their own, for sure. Personally, I like the current structure of WELL because IMHO it offers a nice balance of liquidity...with approximately $600 million in Revenue it becomes a company of interest that mutual funds start buying into... For example another significant investment of mine

[Smokey1958]

Agreed, Nextle! In the example used by Possible, the outstanding shares count that created that too liquid a scenario was in the billions. WELL would have a long way to get there. Furthermore with WELL predicted to show net profits relatively soon the outstanding share count is likely to remain relatively stable in the shorterm ...certainly a good sign. Another significant measure that supports

[Steve33]

Ideally if the cash flow is high enough why not buy and retire shares. Better now than at 7 or 8. A 5 or 10 percent buyback would be great.

[Nextlegup]

IMO... WELL is doing it right... A share buyback makes sense when a stock is undervalued and there are few alternatives for growth...you're essentially consolidating your share structure (fewer pieces of pie)...By ramping up acquisitions, your super-charging revenue and the future foundations of growth by buying more medical practices with that cash... Point is, IMHO, there are a large