Jason Donville WELL Health Technologies WELL-T PARTIAL BUY Jan 06, 2025

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

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.

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.

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

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.

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.

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.

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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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.