Premier Health of America Inc V.PHA

Quebec offers nurses 18k to end staffing crisis

[Torontojay]

https://www.cbc.ca/news/canada/montreal/quebec-plan-nursing-staffing-crisis-1.6186971

It looks like the government wants to incentivize nurses to come back into the public sector so they could eliminate the unnecessary overtime hours that many have faced. When there is a shortage in the public sector for nurses then this would benefit Premier Health of America as positions would need to be filled by private agencies. On the flip side, if governments incentivize workers to come back then there are less overtime positions that need to be filled and consequently less demand for Premier Health services. It looks like a war between the public and private health care sector is going on right now.

[colourama]

Do you think these bonus incentives are likely to represent a significant threat to Premier Health's core business? The way the stock has reacted (about -30%) in the last couple of months, the investment community seems to think the company's growth prospects have vanished. I didn't think the latest news release was terrible, but I am not an expert so keen to hear other views.

[Torontojay]

Its difficult to quantify the impact this will have going forward but I'm sure they'll be just fine. Let's look at the positives: Q4 ebitda is expected to be $1,439,191. I used the mid-point of managements guidance for the year. Revenue in Q4 should come in at around $ 16,500,056. Ebitda margin in Q4 is expected to be around 8.72%  Q3 ebitda:  $1,309,833 Q3 revenue