WELL Health Technologies (WELL-T)

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.

Lots of momentum in the US. 12-month price target of $6.47.

Company ability to grow very good. Lately stock has been volatile. M&A a little questionable. Has not been following business closely. Good option in the healthcare space, but would recommend watching. 

Small cap. It would move with a major catalyst like institutional interest, a major contract, or a merger. Otherwise, it's just not on the radar. People own these hoping for a home run, but have to look at your opportunity cost.

Increased 2024 guidance. 98% recurring revenue which is very attractive. Not a cheap valuation, would recommend holding, or buying on weakness. A good "small position" in portfolio. 

It is a digital health company. The CEO ran a previous company which did very well. Well Health did well during Covid and made a lot of acquisitions, but hasn't done well since Covid. He is not interested because of lack of profitability and ROC is not as high as he is looking for. He respects the company which has done a good job on the topline but needs a better bottom line. Analysts seem to like it since they make lots of money from it. 

Healthcare is a good theme and the sector needs to be more efficient so opportunities lie ahead. Strongly likes this.