Centric Health

CHH-T

Analysis and Opinions about CHH-T

Signal
Opinion
Expert
HOLD
HOLD
June 14, 2018

He is down. They suffered the perfect storm with regulatory reform and then Alberta limited the number of pills being dispensed per day. They distribute to institutions like retirement homes. They hired a new CEO with tremendous industry experience. He thinks the company is taking the right measures to cut costs and be more efficient. He still thinks healthcare is a good space.

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He is down. They suffered the perfect storm with regulatory reform and then Alberta limited the number of pills being dispensed per day. They distribute to institutions like retirement homes. They hired a new CEO with tremendous industry experience. He thinks the company is taking the right measures to cut costs and be more efficient. He still thinks healthcare is a good space.

BUY
BUY
May 10, 2018

Over the last 12 to 24 months has had a number of reimbursement cuts or rumours of them. It is now trading at a cheap valuation. Assuming no more cuts, then they should be starting to build on that. In recent earnings surgical centers were stronger than analysts expected. They have a new product to roll out the second half of this year. It is an at-home dispensing product. It'll be a 2019 story in terms of the uptick.

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Over the last 12 to 24 months has had a number of reimbursement cuts or rumours of them. It is now trading at a cheap valuation. Assuming no more cuts, then they should be starting to build on that. In recent earnings surgical centers were stronger than analysts expected. They have a new product to roll out the second half of this year. It is an at-home dispensing product. It'll be a 2019 story in terms of the uptick.

DON'T BUY
DON'T BUY
May 8, 2018

He used to own this. The CEO he knew suddenly and abruptly resigned. They brought a new CEO but then there were reimbursement problems. Their balance sheet is not pristine. Centric doesn’t look like a quick fix.

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He used to own this. The CEO he knew suddenly and abruptly resigned. They brought a new CEO but then there were reimbursement problems. Their balance sheet is not pristine. Centric doesn’t look like a quick fix.

TOP PICK
TOP PICK
April 11, 2018

Has two divisions: specialty pharmacy and surgical. They dispense pharmaceuticals--CHH gets a contract at a long-term care facility and fill all their prescriptions for them. So, they get paid a dispensing fee and a margin on the prescriptions. Their surgical centres is where the long-term play is. Their growth will likely come from medical cannabis which they mentioned in their latest quarterly call, because they're the exclusive supplier at these LTC facilities. Also, they will supply automatic pill dispensers to seniors living at home to enable proper and safe medication-taking for seniors.

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Centric Health (CHH-T)
April 11, 2018

Has two divisions: specialty pharmacy and surgical. They dispense pharmaceuticals--CHH gets a contract at a long-term care facility and fill all their prescriptions for them. So, they get paid a dispensing fee and a margin on the prescriptions. Their surgical centres is where the long-term play is. Their growth will likely come from medical cannabis which they mentioned in their latest quarterly call, because they're the exclusive supplier at these LTC facilities. Also, they will supply automatic pill dispensers to seniors living at home to enable proper and safe medication-taking for seniors.

PAST TOP PICK
PAST TOP PICK
January 24, 2018

(A Top Pick Jan 25/17. Down 11%.) Has been a bit of a disappointment from a stock price perspective. They continue to execute their plan, and it probably got ahead of itself on a multiple basis. They are continuing to do everything they said they would do.

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Centric Health (CHH-T)
January 24, 2018

(A Top Pick Jan 25/17. Down 11%.) Has been a bit of a disappointment from a stock price perspective. They continue to execute their plan, and it probably got ahead of itself on a multiple basis. They are continuing to do everything they said they would do.

BUY
BUY
November 16, 2017

He likes the company. One division is an industrial pharmacy. The other is private surgery. There is increasing demand for both due to the aging demographic. Analysts are gearing up for what they see as pretty good growth in the next couple of quarters. Longer term it will do well also. It is in the sweet spot.

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Centric Health (CHH-T)
November 16, 2017

He likes the company. One division is an industrial pharmacy. The other is private surgery. There is increasing demand for both due to the aging demographic. Analysts are gearing up for what they see as pretty good growth in the next couple of quarters. Longer term it will do well also. It is in the sweet spot.

BUY
BUY
October 5, 2017

A healthcare story with 2 parts. One is paid for private surgeries, which he thinks is going to get a big tailwind because governments are broke. The other side is industrial pharmacy which fills prescriptions for nursing homes, etc. Lower margins, but nice volumes.

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Centric Health (CHH-T)
October 5, 2017

A healthcare story with 2 parts. One is paid for private surgeries, which he thinks is going to get a big tailwind because governments are broke. The other side is industrial pharmacy which fills prescriptions for nursing homes, etc. Lower margins, but nice volumes.

BUY
BUY
August 21, 2017

It has not done anything since it was his top pick. Nursing homes will send over scripts. It is a play on demographics. The demand for their services is going up and up. It is high risk because it is small, but he thinks you will see good things.

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Centric Health (CHH-T)
August 21, 2017

It has not done anything since it was his top pick. Nursing homes will send over scripts. It is a play on demographics. The demand for their services is going up and up. It is high risk because it is small, but he thinks you will see good things.

BUY
BUY
June 22, 2017

It is a big turnaround story over the last three years. They managed to sell off a division for more than expected. They are dispensing drugs through nursing homes. They have automation to make sure all these multiple pill packs have all the right medications in them. They get long term contracts to service these facilities. The thought is that CHH-T will end up getting all the McKesson contracts after the acquisition of Rexall, CHH-T’s supplier.

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It is a big turnaround story over the last three years. They managed to sell off a division for more than expected. They are dispensing drugs through nursing homes. They have automation to make sure all these multiple pill packs have all the right medications in them. They get long term contracts to service these facilities. The thought is that CHH-T will end up getting all the McKesson contracts after the acquisition of Rexall, CHH-T’s supplier.

COMMENT
COMMENT
April 26, 2017

There is a lot of room for them to grow on 2 fronts. They look after prescriptions for a long-term care facility and get paid a dispensing fee for that. From that perspective, they have lots of room to grow. They have a relationship with McKesson, which bought Rexall, and it was thought that they would get some of those contracts from McKesson which would increase their earnings and cash flow. The other side of the business is their surgical centres and are looking to increase the usage so they would be much more profitable.

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Centric Health (CHH-T)
April 26, 2017

There is a lot of room for them to grow on 2 fronts. They look after prescriptions for a long-term care facility and get paid a dispensing fee for that. From that perspective, they have lots of room to grow. They have a relationship with McKesson, which bought Rexall, and it was thought that they would get some of those contracts from McKesson which would increase their earnings and cash flow. The other side of the business is their surgical centres and are looking to increase the usage so they would be much more profitable.

COMMENT
COMMENT
March 10, 2017

Just reported earnings and the stock had a pretty dramatic selloff, especially based on the numbers. This has transitioned in that they’ve had higher revenue and earnings numbers, as well as higher margins. Feels the market got a little disappointed in the growth rate, but the company has actually said that it is going to be November before the transition from Riviera beds to Chartwell beds ends. The big catalyst to watch is the debt refinancing. They’ve stated they are 80% along with a major Canadian bank. That will be a huge savings for them. He added to his holdings on the last selloff.

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Centric Health (CHH-T)
March 10, 2017

Just reported earnings and the stock had a pretty dramatic selloff, especially based on the numbers. This has transitioned in that they’ve had higher revenue and earnings numbers, as well as higher margins. Feels the market got a little disappointed in the growth rate, but the company has actually said that it is going to be November before the transition from Riviera beds to Chartwell beds ends. The big catalyst to watch is the debt refinancing. They’ve stated they are 80% along with a major Canadian bank. That will be a huge savings for them. He added to his holdings on the last selloff.

TOP PICK
TOP PICK
February 16, 2017

One division does private surgeries that are not covered by healthcare. Every year they cut more and more services from provincial plans so there are more and more opportunities to use their services. The other division is an industrial pharmacy that services businesses like seniors homes. It is a turnaround story. They used to have a lot of debt, but margins have improved. He is impressed with management. The stock has positive tailwinds and it is a turnaround story. (Analysts’ target: $1.02).

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Centric Health (CHH-T)
February 16, 2017

One division does private surgeries that are not covered by healthcare. Every year they cut more and more services from provincial plans so there are more and more opportunities to use their services. The other division is an industrial pharmacy that services businesses like seniors homes. It is a turnaround story. They used to have a lot of debt, but margins have improved. He is impressed with management. The stock has positive tailwinds and it is a turnaround story. (Analysts’ target: $1.02).

TOP PICK
TOP PICK
January 25, 2017

Feels there is a fair bit of catalyst on this. They have 2 parts to the business, a specialty pharmacy and some surgical centres. The specialty pharmacies are basically pharmacies for long-term care facilities. They have a contract with a long-term care facility, and get paid to basically package prescriptions up for them and get paid a dispensing fee. Have about 27,000 beds right now, and he can see another 20,000 beds coming in. (Analysts’ price target is $0.80.)

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Centric Health (CHH-T)
January 25, 2017

Feels there is a fair bit of catalyst on this. They have 2 parts to the business, a specialty pharmacy and some surgical centres. The specialty pharmacies are basically pharmacies for long-term care facilities. They have a contract with a long-term care facility, and get paid to basically package prescriptions up for them and get paid a dispensing fee. Have about 27,000 beds right now, and he can see another 20,000 beds coming in. (Analysts’ price target is $0.80.)

COMMENT
COMMENT
March 11, 2015

As far as the sector goes, they are in the right spot. Have just started to do more M&A and changing their business a little. He is watching this, but has other healthcare holdings that he likes better. Valuation is pretty good, and depending on what management does, there could be some potential for it to move higher.

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Centric Health (CHH-T)
March 11, 2015

As far as the sector goes, they are in the right spot. Have just started to do more M&A and changing their business a little. He is watching this, but has other healthcare holdings that he likes better. Valuation is pretty good, and depending on what management does, there could be some potential for it to move higher.

SELL
SELL
October 12, 2012

Cut your losses. $.71 is the floor and it broke through there.

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Centric Health (CHH-T)
October 12, 2012

Cut your losses. $.71 is the floor and it broke through there.

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