Q: Hello, What are your thoughts on Well? I am considering starting a position..but I am worried about the increase in share count 100x from 2012 to present. Is this normal for a growing company? Compared to CSU this looks irresponsible..
5i Research Answer:
We are not sure than many companies compare favourable to CSU, it is quite the one-of-a-kind performer. We have liked WELL for some time, and have not been too right on it so far. But recent updates from the company have been quite positive, and it is starting to act better these days. We like its growth prospects, possibility of a split of the company, and management. It certainly has had some growing pains, including some accounting issues, but we think the outlook is better than the recent past. It is cheap at 14X earnings, and consensus calls for good growth. The share count has gone up a lot in the past six years, certainly, but we would also note that EBITDA has also gone from $30M in 2021 to (forecasted) $194M this year.