Post by
retiredcf on Aug 18, 2024 1:55pm
Circle Medical
WELL announced today that Circle’s growth continues to be excellent and possibly accelerating. The last thing I would think of doing is selling that business if I owned part of it. They talk about unlocking shareholder value. I would prefer they buy more of Circle rather than selling their piece.
Circle now has a $100M revenue run rate and 55% margins. Business is good. We do not generally try and analyze company's capital allocations too much, however. Management knows the business of course more than we do. Executives have sold businesses before, and if they can re-coup capital and redeploy it for better returns (with more acquisitions at good valuations) then that could still be the right move for the company. Selling when things are going well, of course, also gets a better valuation. High debt could be holding back WELL's valuation, and thus a big asset sale could improve the share price. Either way, we would continue to view WELL as attractive overall. (5iResearch)
Comment by
Speedyg5344 on Aug 19, 2024 4:35pm
If you listen to the investor day audio, Circle's CEO opined it would be a 1 billion revenue business in 5 years
Comment by
ahsh1kah on Aug 20, 2024 9:53am
No, I didn't and I doubt they can raise CR revenue 10x in 5 years, and if they managed, then Shahbazi should be nominated CEO of the year(s) All what I know is WELL future is bright and dark days are behind us. The stock should no longer see 3 ish level and not even 4.25 ish.levels and if happens, don't hesitate to nibble more shares..