Alex RuusWELL Health TechnologiesWELL.TODON'T BUYJul 29, 2022

Tries to be a technology company, but has yet to prove it. Built up a great business during the pandemic, but has lost its execution way. Used to own, but then sold as dead money.

Divesting non-core US operations (taking longer than expected). Has 2% market share, could get 10+% easily. In process of IPO'ing its crown jewel technology company -- doing really well, should command healthy multiple.

Cheap valuation. Numbers on a fundamental basis look really good on paper, yet stock price has really struggled to break out. Acquisitions haven’t moved the needle. He’d want it to break out, perhaps above $6 or so, before adding.

Concern from the Competition Bureau about some of its acquisitions. Revenue growth last quarter was up 56%, organic growth up 19%. Sees bit of weakness in the growth story over next 12 months.

Really cheap at 9x PE for an exciting growth play. One you want to own in a non-registered account. Not an "if" story, but a "when" story. Thinks your patience will be rewarded.

Was a pandemic darling. WELL should work, but the stock can't get its footing. The regulatory environment is not great with many healthcare regulations. Pays no dividend and is a small cap, so riskier. It relies too much on government regulation.

Good company, likes the CEO quite a bit. Great buying opportunity right now, lots of upside. Especially likes that they're divesting from the US, which they absolutely need to do. Less than 2% market share, with lots of runway to consolidate in Canada. As they do that, investors will get more comfortable with the overall business.

Also, intends to IPO Wellstar this year -- the crown jewel, should command a healthy multiple, unlocking value.

Looking to sell off US assets. Stock's interesting at this level, and his team is starting to take a look. Market needs to see some of its pending transactions go through. If the assets are so great, why aren't they executing on the sales? Investors are in wait-and-see mode.

He sold it. It frustrated the crap out of him. Like Knight Therapeutics, it's a Canadian health stock that seemed to have a good story and decent earnings. But it didn't catch fire. The chart shows it bottoms around $3.75. At best, it will hold that level and march up. Canadian healthcare stocks need a lot of patience.

Being investigated for some mergers as potentially anti-competitive. Q3 was in line. Strength in US patients and SaaS segments. Affirmed outlook. Margins beat. Revenue growth up 56% YOY, organic growth up 19%. Analysts have upgraded.

Because of acquisitions, earnings outlook not steady enough. Very cheap at 9.5x PE for 2027. For riskier, more speculative capital, you can own it in a non-registered account.

They bought CRH Medical which has physical locations. This augmented WELL's original online health services. Some investors feel that some companies they've bought don't fit together. It's too early to see how this plays out. Good CEO and digital health is good. The PE has always been too high for him. If they can integrate and show a clear strategy, shares should rise down the road.

Numbers just came out and were in line, though US side was a little sloppier than Canadian side. Remote health is a growing industry. Trades at 10x operating cashflow. Wants to see them divest some US assets and focus on Canada.

Sometimes the market doesn't get it right so there is an opportunity here and you should be rewarded for waiting. It beat on Q2 and confirmed 2025. There is some softness in the US but it has a good valuation at 8.9 times EBITA.

Tends to spike on a few catalysts, then falls off if there's no follow through. His position isn't large. Good runway to analysts' price target. Building out clinical side of business and the SaaS side. Needs more catalysts. Wishes he'd traded it instead of invested.

The quarter was good. The question referenced was asking what it would take to get the stock moving more. We answered that debt and cash flow need to improve to get a higher valuation.  We are comfortable with the outlook and current valuation, but it needs a catalyst to get its mojo back. We would be comfortable owning it but would not see the need to buy more if owned.
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Expectations have been high since the beginning; founder's previous success was attributed to this name. Business has changed over time. Good job growing business. Revenue growth is there, profitability is not. Good investment banking client, as they raise money quite often, and so the analysts are favourable to it.