WELL Health Technologies (WELL-T)

We're in a macro environment where small caps are just not doing well; people are just selling and not looking at the underlying businesses. He owns DNTL, a similar idea. Both will work out slowly over time if you hold for 5 years.

Great company. Management's done well on M&A front. Delayed financials, not a good sign; a US company they own is being investigated. Red flag. He still has faith in management. Watch the next month very carefully; further delay is a double-red flag, resolution would represent a very strong buying opportunity.

12-month price target of $8.80. Some acquisitions. Finally achieved $1B annualized revenue runway, which brought it onto more people's radar.

WELL helps doctors by acting as their back office to handle all the paperwork. WELL is adding lots of companies. The price target is $10.

Is currently reorganizing, spinning off Well Star (like Vitalhub) and that price is too high. WELL may also spin off more businesses. What will the balance sheet look like? He's on the sidelines.

He is looking at it. It is very cheap and starting to move, with metrics looking pretty attractive now. It looks like we'll see a more focused company in the future. There was a bubble in the health tech sector but things are sorting themselves out and it looks good for investment. You could probably start buying.

Great management team. Recent spinoff is interesting, as it's about optimizing value for shareholders, not about empire-building. Capital discipline is there.

Has a lid on it going back 3 years. There is no right or wrong answer, but when you're coming into an old resistance point, you have to have a catalyst to get through. Remember, people sold (didn't like) this stock at that peak level (around $5.50). And now it's approaching that level. 

If there's a catalyst to break through, it will, but keep in mind that it has to be a pretty big catalyst. If there's not a huge change to the company, he'd probably look to sell really soon.

It is a really interesting mid cap of about $1 billion. It is very well managed  and has made a couple of really strong acquisitions. It has increased its margins and revenue and upped its guidance last week. It is also profitable and the growth rate looks really good but the stock has lagged. Management has never strayed from their strategy and is going to grow this business and shift the Canadian market into the digitalized type of world.

Too small for his portfolios. In Canada, rolling up medical practices with a strategy of using technology to reduce administrative burden. In US, has a GI line, as well as virtual mental health and women's care; may spin off the latter two. Valuation ~40x forward PE, rich. He can't get behind that valuation, but progress will be interesting to watch.

Has looked at in the past, but believes stock has always been over valued. Trend is towards digital health, but not investing at this time. Will continue to watch. If margins increase, might invest. 

Looks as though it wants to push higher and retest recent highs from 2023. Looks good, let it run. Thinks there's more upside.

In different areas of the market. Healthcare tends to be a more regulated industry, so he doesn't have a strong opinion. Scale has a role to play. Its businesses don't have the makings of huge homeruns. Neutral.

Management team has solid record of success. Continues to make acquisitions and grow company. Caught on during Covid, valuation probably got stretched; now backfilling the valuation. Fairly attractive right now. He's watching for them to move margins up.

This is an example of buying a mispriced stock at low prices. Markets are not efficient and get things wrong all the time. WELL had a good Q2 with strong organic growth - 98% returning revenue and 37% revenue growth. It still has to grow into itself since it is very expensive, trading at 100X 2025, but if the growth comes through it is 10X by 2026. Therefore it needs to execute.