Premier Health of America Inc V.PHA

Out of touch

[MrBeast]

nothing like record revenue, better margins and SP goes down. Hold, hold, hold but for how long?

[Torontojay]

  We are at the peak of the business cycle and we will be entering a challenging market over the next year or 2. I would accumulate or hold at the very least until inflation expectations have come down. The good news for Premier Health is that we're in a recession proof business and earnings should continue along which will mitigate further risks down the road.  Great value here.

[colourama]

Torontojay, given that PHA is more of a growth-by-acquisition story, do you think that the current economic environment could actually be somewhat beneficial to them, in the sense that it may be cheaper to acquire? Or is taking on more debt at this time outweigh any benefit like this? I get that the overall market has been brutal for many, but unless there is some sort of fundamental business

[Torontojay]

I think the current environment is good for their business strategy by acquiring companies on the cheap. The recent drop in security valuations has given them an advantage as they are a profitable growth by acquisition company. The cash flow from these acquisitions more than offsets the increased discount rate due to the higher interest rate. I'm very comfortable with their debt service

[colourama]

I share your exasperation MrBeast, there just isn't the appetite out there at the moment for micro caps like this one. PHA has solid fundamentals and operates a needed service, but it is still early in the story so I remain patient.