Premier Health of America Inc V.PHA

Acumen

[CauseWhyNot]

Acumen put a target of 0.85 based on 8 times 2024 ebitda.

they also noted they are looking for acquisitions outside of Quebec still. 

both okay news.. I'd like them to just start hiring people and starting from scratch until they have an acquisition. Times a ticking. Hire and grow.

[colourama]

Appreciate the update! Certainly looking forward to achieving this price target (and higher) as admittedly I am deep in the red on this stock. For the point of, why don't they just hire people instead of looking for acquisitions, I'm no expert, but I think a huge obstacle to just hiring people is simply that there is no one to hire. In their MD&A, they mention a few times "

[Torontojay]

That's a good point Colourama. I think they should simply focus on their current operations and pay down debt as long as interest rates remain elevated. The interest expense is now reducing its profitability which is now almost $412k  per quarter. If they pay down their debt, they could add almost ~ $1.6m to earnings before taxes. This is very attractive considering their market cap is

[snootchybootchy]

It seems to me that although the shortage of nurses impacts the ability of PHA to grow, it also makes their services indispensable.

[colourama]

Snootchybootchy, good point - in their MD&A they mention that "Generally speaking, demand for our services is expected to remain strong for the foreseeable future." It is also good news to read that even though there is a shortage of nurses "...our hiring has accelerated since last year. This bodes well for the future." Also, from what they are saying of Bill 10 is it may

[colourama]

Torontojay,  assuming they solely focus on tackling the debt, how quickly can reduce it? I noticed that long-term debt was reduced last quarter by about the same amount as the reduction of receivables (approx. $1 million) - is it a reasonable hypothesis to assume the cash collected from receivables can be directly applied to debt? Seems to be a single anonymous seller recently driving the

[Torontojay]

In the last 6 months, changes in non cash working capital is -$6,940,055 and this is due to accounts receivables not being collected fast enough to offset cash outflows.  In the last 12 months, changes in non cash working capital is - $9,400,396.  If this reverses, then we could see a positive swing in our favour of up to $9,400,396. This would leave working capital at a healthy

[CauseWhyNot]

Hmm not sure if the actually hirer the healthcare staffs or if they are just the agency.  however, I meant hirer business development people to start finding healthcare workers and getting contracts for staffing. They should have started this in BC and more in Ontario before ever doing the NCIB. The 500k could have hired 3 or 4 BD working to secure more contracts and find workers. Both