Patient Home Monitoring (PHM.V)

(Market Call Minute.) This is just a disaster and it is time to go.

This had a dramatic move up of over 40% today, but he didn’t see any news on why. Looking at their underlying business, what they have and where the stock is, are really disconnected right now. The company still has strong cash flow. The last quarter they didn’t have any earnings, but thinks that was a temporary thing for the one quarter. Suspects they will move back into being earnings positive/cash flow positive. There will also probably be a ramp up in their revenue, which will translate into stronger cash flow and earnings going forward.

(Market Call Minute.) This continues to offer an interesting product, but at the moment he would expect there are other opportunities with other stocks.

The whole sector has been difficult. Did a ton of acquisitions, and it was very difficult to ascertain what they were acquiring and if they were actually growing organically. Feels it is a promotional stock in terms of management and some of the people behind it.

This has been a disaster. On the recent quarter, year-over-year growth looks quite solid, but quarter over quarter wasn’t too great. This kind highlights the risk of getting involved in businesses that are reliant on government funding. It just seems that they can’t put together a quarter without any negative news.

(Market Call Minute) A dog. He likes the model. But it is suffering.

(Market Call Minute.) He would wait until after tomorrow’s earnings and see what happens. It could be a buying opportunity, but they have been really clobbered by reductions in pricing for the services they offer.

(A Top Pick April 15/15. Down 84.48%.) This was a mistake. It was on an acquisition spree. Their stock went down which changed their strategy. The management team left and there was insider selling. New management is cutting costs and resetting expectations. Thinks they are doing the right thing. They have some cash on hand and just did another acquisition recently. It might take 2 years to start to react.

It is his most favoured of the new age medical services companies. They had one or two hiccups, but they still trade very heavily. He does not know of anything wrong with it or why it does not get a bit better.

(Market Call Minute.) Would like to see the next quarter of numbers to see if there is some stability from the Medicare cut.

There are 14,000 small cap stock names and some of them are not worth the grey hair. This is one of them. He does not like the business they are in. It is a low growth rate business. There are better opportunities.

The glory days are over. He got out.

The Chairman is working hard to get this company sold. They are facing some problems right now. They have issues with reimbursement and stagnant revenues, so the wheels have fallen off this former market darling. A bit of a dog’s breakfast of different businesses, so it is hard to see who is going to buy it. If it is cheap enough, it probably does get sold. It won’t happen until they right the ship. They have a lot of work to do to fix things.

He is neutral on this as a growth stock. The stock is cheap and obviously has done really well in the last 3-4 days. Management still needs to show us that they can manage this enterprise. Their last quarter was pretty good, but he is still not convinced they have got the model right. He has a “wait and see” attitude. Very inexpensive, which is positive, but haven’t really shown they can run a business yet.

Serves the patient aid area and offers respiratory systems to people in their homes who need assistance. Have acquired a number of companies and are starting to cross sell synergies, etc. Started out as an acquisitor, but new management is more of an operational type of team, and showing they can run the business and generate strong cash flows. Facing good demographic tailwinds and there is a lot of growth behind them. Approaching a $40 million run rate in quarterly revenues and has a pretty good balance sheet. The messy part is that it trades on every little rumour. Management could do a better job of getting on top of those.