CVE:DOC

CloudMD (DOC.V)

0.04
-0.00 (0.00%)
as of Jul 10, 2024, 3:27:02 pm Market Open.
210 watching
0
DON'T BUY
It was caught up with other health care names when COVID hit. The company got a little ahead of itself with the excitement of remote medicine. They raised a lot of capital and acquired a lot of companies. It is a wait-and-see for him. They need to justify the valuation that it is at now. He prefers others.
TOP PICK
Telemedicine plus they use AI in their medical clinics. They make acquisitions to synergize and they grow organically. They boast $130 in revenue and $50 million in cash, so they can continue to buy more companies. It trades at 2.5x revenue vs.peers at 6x. Expect good multiple appreciation. Managers own a lot of stock and he's known them from the start. They execute well. They should rise a lot higher. (Analysts’ price target is $3.96)
TOP PICK
Healthcare solution providers. Acquisitions and organic growth. Really likes the recent push of one-stop healthcare shopping to employers and insurance companies. Sector has come down, waiting for two deals to close, trading at 3x profitable revenues. Great opportunity. No dividend. (Analysts’ price target is $3.96)
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. It reported strong revenue growth at $8.8M. An increase of 187% YoY. They made 5 acquisitions and is well-capitalized to pursue more. There is also organic growth in all parts of the business. Long term outlook looks good. Unlock Premium - Try 5i Free

DON'T BUY
Loss of 2 cents this year, gain of 2 cents next year. Telemedicine is a fantastic opportunity, but not a lot of barriers to entry, and the big guys are already involved. He favours companies with high barriers to entry. PE of 100, so he'd pass.
PAST TOP PICK
(A Top Pick Apr 27/20, Up 282%) Tele-medicine. Expanded through Canada and now into US. Trading at lower valuation than peers. Just raised capital for more acquisitions of technology and clinics.
BUY ON WEAKNESS
They are doing a lot of interesting things. He decided to take a position in another in the space. The problem was the valuation. It is too expensive. It is a promising space in the long run. It is expensive right now but a well managed company. You need to buy it cheaply and smartly.
BUY
It's in the hot telemedicine sector. This was a former top pick. Has done very well this year. They've built their platform this year. They've done a deal with pharmacies in the west, and have bought companies in tech and physical clinics. This will give their customers a choice between e-contacting a doctor and meeting one in person, or doing both. Vaccine needs is pressuring e-health stocks, but he expects this to continue growing.
BUY

WELL Health vs. Cloud MD, and buy the warrants? Different companies in the same sector. He owns both and expects both to excel in the coming year. Cloud MD just released earnings, not as strong as he expected, but talked about future catalysts coming in the fall. WELL just announced an acquisition and got financing from their biggest shareholder, Lee Ka-Shing. Both are equally good. Warrants: you could do this, but the challenge is that both stocks have enjoyed huge runs and profit-taking could happen. You have a finite time before those warrants expire worthless or you decide to exercise the warrants--it's riskier, though offers a higher return. In contrast, you can just hold onto the stock.

BUY
They should be able to capitalize well on the COVID trend and then the telemedicine trend that will go on. CloudMD has an interesting platform. The stock has not done much in the last 6 weeks. They completed a financing. He suspects people were subscribing and then selling the stock and holding the warrant. He thinks it will continue to do well over the next two years.
WATCH
Tele-medicine? He likes this space. When they looked at what sectors will benefit post-pandemic, this was one. PM Trudeau has committed to putting government money into this space. What worries him about Canadian holdings, is that they are small fish in a big pond. Other companies already have over 50 million subscribers. Valuations are pretty stretched, so he would watch for good opportunities.
BUY
A past Top Pick. He likes them for their virtual health care service offerings during and after the pandemic. They just signed a deal to put kiosks in pharmacies. They had an equity offering that was 8 times over-subscribed.
TOP PICK

They can take advantage of COVID. They do telemedicine. They are just starting to get adoption.

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