Today, Jesse Gamble commented about whether CPHR-Q, E-T, ZDC-X, QSR-T, MCB-T, STN-T, IMP-T, PNG-X, TGH-X, DSG-T, RET.A-T, HAI-T, TVK-T, T-T, MRE-T, BB-T, XX-X, ENGH-T, WELL-T, SHOP-T, HPS.A-T, STC-T, GREY-X, PRL-T, KSI-X, DNTL-T, VHI-T, LSPD-T, DE-X are stocks to buy or sell.
They bring validation software to biopharma, and they do it well. The chart is strong. He's been adding shares. Before, they were losing as they invested in R&D, but now they're becoming profitable. He expects margins to expand quickly in coming years. When they win a client, it takes time to roll out that client. Growth is safe.
The chart shows a massive spike up, massive drop, and now recovery in the past year. They likely paid too much for a company in 2022 and were trading at a high PE. He had added shares in 2023-4 after a new CEO started bundling products, focus on margins and integrated companies. Has been doing a good job. He expects them to return to growth this year at 10% organically and 18% EBITDA margins. Looks cheap, half the PE of peers.
A large position for him. They bring tech to the healthcare industry, like software. They had a previous business that they grew, then sold to private equity and finished their non-competes, and now they're doing that again with a new product that is starting to produce cash. Margins have risen to 24%, and they target 40%. It's becoming a cash engine that they're using to reinvest in products. They have a ton of cash as they grow 10-15% organically.