Premier Health of America Inc V.PHA

Future earnings

[Torontojay]

What kind of earnings could we expect if Quebec is mostly out of the picture? Any guesses?

[dundas]

I do not know if the Quebec sanctions are going to effect Premier. I did not pay any attention to the new draft proposal which was to be released in October, was more interested in the Solution Staffing acquisition.

[colourama]

I guess as a crude approximation, we could add CHCA numbers with SSI numbers - that gives what about $10mill in EBITDA per year if we throw away all of Quebec? Although the stock price has tanked the last two years, I've been pretty impressed by management. Tricky to navigate both elevated interest rate environment and the hostility in Quebec, and I think they've done a respectable job

[BrokeStocker]

I thought we'd be trending up not down at this point. I saw New Brunswick is heading the same way as Quebec. Not sure how much business they have out east but not liking the trend. Maybe that's what's spooking the market? I haven't seen anything out of Quebec even though they said the regulations were coming in October.

[Bigmac4000]

SSI does a lot of work with  Horizon Health . I haven't heard anything about that changing. Hmmmmm. I don't think the health Authorities can afford to lose these services. They are equipped for it. Staff shortages and a very complicated system in Canada. Even though they are working on a generic license across the country there is still so many road blocks for the government to shut

[colourama]

I don't understand the selling here - seems to be a huge amount of pessimism without much substance. Meanwhile, the company has closed on a transformative acquisition, and recently secured a significant continuity of contract for CHCA.

[dundas]

The delay in closing the acquisition killed the momentum. The financing terms are terrible. The quebec government proposed bill has increased the risk. They have to have good earnings to turn this around. We should find out soon. I am already in a big hole here cannot afford any more negative news.

[colourama]

I agree the financing terms are hard to stomach, but isn't it net accretive overall, even taking into account the financing costs? The Quebec bill is not something new so not sure why suddenly people want to crater the stock price.

[BrokeStocker]

Looks like we just broke through $0.30, not a great sign. Market cap of $16m seems insane given the numbers, but it's become clear the market has severe doubts over the viability of the business. IMO, the current valuation seems like people are thinking they'll be bankrupt within a year.

[snootchybootchy]

I'm frankly ok if the share price stays down here into the new year when TFSA/RESP limits reset. The longer this name stays under the radar, the more we can accumulate.

[snootchybootchy]

Both Horizon and Vitalite have stated they will stop using travel nurses by the end of 2025. Come on. If this chronic nursing shortage, which has gone on for decades now in nearly every developed nation by the way, could be solved within 2 years, we would no longer have nursing shortages.