Patient Home Monitoring (PHM.V)

This had an up-day 2 days ago followed by a down day today. Technical analysis gets much more difficult when you have several announcements, that can really change dynamics instantly. Chart is showing a nice little uptrend starting, and it is not going to run into any significant resistance at this time, until we hit something like $.50.

Just reported a great quarter in February, the first quarter they ever generated any cash. Trading at a super cheap valuation. Still very cheap and under loved. He is expecting this to double or higher from here, in a year’s time.

One of the most hated stocks in Canada. They were on a huge acquisition spree a couple of years ago, but have bought a company called Fleet Management, which did an excellent job of growing their business. The 2 men in charge took over a big mess. They right sized the company and sold off some stuff and closed down some stuff and brought their bad debt expense down. They’re growing the company at a phenomenal rate, 25%-30% per year. Just posted the 1^st quarter where they generated cash, so they are cash flow positive. The valuation is super cheap, trading at less than 5X. The stock price could triple from here and still be cheaper than something like a Savaria (SIS-T) or a CRH Medical (CRH-T). Too cheap to ignore.

There are a few questions with regards to their business model. There could be some changes in the regulatory front at this time. Management has been very promotional at this time and investors should stay away.

This hadn’t made money to what he had expected. They recently announced that they were going to split into 2 separate companies, and he doesn’t really see the benefit of that. If he owned the shares, he would probably hold onto them.

(Market Call Minute.) He doesn’t like the management.

(A Top Pick Nov 18/15. Down 71.15%.) This has been a huge disappointment. When they reported their quarter in January, you had to dig into the release to find out that they had a Medicare cut in one of their ventilator products, which was going to be a fairly significant hit. That is when he sold his holdings. They’ve now announced they are going to split the company into 2. This will be a tax loss selling candidate.

A microcap that has decided to split into 2 companies, so you are going to have 2 smaller microcaps. Investors are really fed up with the company. As the stock price declined, their ability to make acquisitions has dramatically changed. It is just too small and people just don’t care. The best advice would be to move on.

Not a big fan. He used to like it, but they have been making a lot of poor management moves. They are now splitting the company into 2 parts, which he thinks is an odd decision. A $70 million company right now, so cutting the companies in half full makes them even smaller. Thinks it hurts their viability.

Management is talking about splitting the company into 2. A lot of companies, when they split, do very well. Sometimes it takes a while for it to happen. There are all kinds of costs associated with it. He would be very wary of this company. Given that it is splitting, you might want to Hold. Look closely at the financials and the promises they have made, and how they have done with that.

Watching this fairly closely. They spent a lot of money making acquisitions, and then had to rationalize a lot of them to get costs down and revenues up. They ran into the reimbursement cut at the beginning of the calendar year, which was another headwind. It looks like a lot of that is behind them. Just announced they are going to split into 2 companies, and the stock responded quite favourably. It looks like a fairly positive move. One is going to be organic and yet there is going to be growth by acquisition. He wants to see the next quarter before doing anything.

Just reported their quarter and there were some interesting things from both a bullish and a bearish perspective. They’ve been working hard to reduce their costs which is really positive. Margins have come off quite a bit because of this. However, Accounts Receivable rose a fair bit, and he would like to see them get those under control and also collect them. Also, they are not free cash flow positive. If he saw them turn free cash flow positive and the Accounts Receivable terms come down and they collected a lot of that, he would be more positive on this.

This has not been working well. He loves the model. To some extent it is associated with long-term caution that is in the US hospital sector regarding spending/organization of outpatient situations.

This doesn’t have a seasonal chart, but technically it had a parabolic move up at the beginning of 2015, followed by a parabolic move lower. Now it has started to break higher again. Whether this is on news or otherwise, it has found some support. Momentum indicators are moving higher. Everything seems to be positive and then technicals are looking well.

Rumours of new management trying to find a buyer? He knows nothing about the rumours. If a company has rumours of a takeover, he will give it a point. Based on this rumour alone, he would not be looking to buy this. It still has to have good financial statements, a good reason to exist, good marketing, good revenues.