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  5. SLHG: Skylight Health Group Inc (TSXV [Skylight Health Group Inc.]
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Investment Q&A

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Q: Skylight Health Group Inc (TSXV:SLHG).

Stock is coming down for a while. what is the reason? Is it good time to buy?

Asked by vipin on September 28, 2021
5i Research Answer:

SLHG has been cut in more than half since February, as the sector waned a bit and the market shifted from growth to value. Revenues have been growing, but the company does not generate positive cash flow and net profit margins are very low. The valuation is quite reasonable, however, the company's management of expenses would be a concern to us and the company has been diluting shares to finance operations. Debt has been rising and its cash balance has been decreasing over the last two years. We would consider giving this some time before getting more interested. We like that Insiders own 10% and have been net buyers in the last six months.