TSE:VMD

Viemed Healthcare (VMD.TO)

10.45
+0.29 (2.85%)
as of Dec 21, 2023, 9:00:00 pm Market Open.
131 watching
0
COMMENT
It broke above $3.20 and so far it looks okay, but this trades at low volumes.
PAST TOP PICK
(A Top Pick Sep 24/18, Up 44%) He got stopped out, a mistake. Very profitable, no debt. But they had concentration risk--they need to diversify their customer base. He might buy them back.
TOP PICK
They are in the non-evasive respiratory product market for COPD. Their recent earnings showed 45% increase in revenues. Trades at 20 times earnings, but he thinks they can continue to grow into that. Yield 0%. (Analysts’ price target is $12.50)
WAIT
They make breathing masks for sleep apnea patients. Earnings are forecast to $0.35 per share growing to $0.60 next year. A reasonable multiple then.
BUY
Have enjoyed 25% margins. They faced speculation of increasing competition, which pressured the stock, so VMD replied that that competition lies years ahead and won't affect them. This trades at a decent 12x next year's earnings. Once VMD lists in the US, their stock price will jump up.
WEAK BUY
Small company. Market cap around $250 mill. Not very followed. Decent growth on the revenue side of around 40%. Still have to spend that money. The regulatory issues are big. Very competitive space. But they are very good at it.
STRONG BUY
He almost made it a Top Pick this time. It is a great company and he continues to love it. They were a former sleep management company and are now in the sleep apnea and oxygen space. He adds when the stock sells off. Over time it will continue to higher until it gets taken out.
COMMENT
Took a beating from $8 to $4 upon news about a regulatory change that effected their medical products. He sold his shares. They rely on medicaid and Medicare, but he'd rather see them diversify their revenue base (which they're talking about doing). Good managers, though; he's met them. VMD was too volatile for him. If you own this and can stomach this volatility, VMD will eventually supply a good return.
BUY

They are an interesting company, spun out of the PHM-X group. They have been executing very well. There was a study that looked at what happens when people are closely monitored and it was very in favour in terms of what Biomed does. This is home monitoring of the COPD disease so they can push them out of hospitals sooner. They were growing at 20% per year organically. He continues to own it. PHM-X also looks really attractive now.

TOP PICK

They're the number three player in U.S. respiratory providers. They were spun out of Patient Home Monitoring. 30% ROE. As long as they execute and grow organically, their stock price will rise in 1-2 years. (no dividend, Anaylsts' price target: $9.75)

BUY

Provides breathing masks and other respiratory support services. He expects significant growth and sees it as reasonably priced relative to projected earnings.

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