Patient Home Monitoring (PHM.V)

Great price momentum. Valuation is still not there. It is expensive and there is not a ton of earnings.

Their last couple of quarters have been a very nice turnaround. It was a big acquisition story. Now things are getting back into control. He is not big on turnarounds until they have turned around a little further. If they can put in a couple more quarters they will do much better. You’ve got some time to buy it.

Has not met the new management. This has 2 different parts, one being in the US.

They changed their business model over the years, but he is skeptical of it. There could be regulatory changes. He feels it is better not to take those excessive risks at this time.

Continues to grow organically, and has done a phenomenal job. They had the reimbursement cut a year ago, and since that time they have actually gained back all their business and continue to grow. The company is going to be split and are currently in the regulatory process. Still trading at a very cheap valuation, and can go much higher from here. (Analysts’ price target is $0.85.)

He would like to see more consistency, but it looks pretty good to him. It had a rise and fall, but has been rallying recently.

This looks pretty good. Reached a peak in 2015 and then went into a tail spin and then had a very low volatility base in the latter part of 2016. It is just now starting to make higher highs and higher lows, which is a good thing.

It was in an upward trend and then broke it and is in a downward trend. It is underperforming the TSX and broke below the 20 & 50 day moving average.

Take some profits or be a buyer? This has contracted a bit again. The main problem is that you don’t really get too much presence of them in the marketplace compared to their beginning. An issue that is difficult to handle is that they are going to split into 2 companies in a few months. When they split, that would suggest that instead of having an itsy-bitsy $.38 stock you are going to have 2 itsy-bitsy $.20 stocks. One is probably going to be dealing with sleep apnea type stuff and the other with the traditional home monitoring, which is still really experimental. He would probably underweight this until he could see the whites of their eyes.

Had a tremendous upswing in 2015, and then the price collapsed. A rollup company that are buying clinics. They are similar in some respects to CRH Medical (CRH-T) and Nobilis Health (HLTH-A). There were some questions regarding management. Wait to see more technical strength before entering this.

This got caught up in the whole 2015 healthcare rollup bubble, and sold off materially. It has rebounded remarkably in the last couple of months. Too small for his funds, but if you were looking at this on a standalone basis, it has phenomenal price momentum. This matters because stocks that have done well tend to continue to do well over the near term. The problem with this is valuation and volatility. They are not earning enough to justify to be called anything but expensive. You could own this as a trade, but not as a long-term investment until earnings start to come in.

This was taking over all the little sleep-aid companies in the US, and then ran into some issues, both with management and Medicare. Then it collapsed, but seemed to have turned around. They have some debt, but it is not a big problem. Sold off a couple of non-core businesses. Management has changed. He likes the new management team. Cash flow is growing again, so the debt is not a problem. He owns some of the debt, but not the equity.

It has been very loved and hated. They had a huge turn-up in their business. 30% organic revenue growth. They generate cash and the stock is trading at about 6.5 times. (Analysts’ target: $0.85).

They have now had a couple of good quarters, and are starting to put things together in terms of reducing costs. The momentum behind the stock is very, very strong. He would be reluctant to Sell into such strong momentum, but still wouldn’t want to endorse the company too much because they still have some of the old players involved.

It’s coming back, and not just Short covering, but some actual buying. New management has come in and they are cleaning the place up.