Q: Can you explain reasons for WELL stocks dropping almost 20% while reporting quarterly performance. You always rated this company highly.
5i Research Answer:
WELL's adjusted EPS more than doubled to 16c from 7c in the third quarter. The stock has a nasty habit of declining after earnings. There was no other news, and the company affirmed its guidance. Investors were probably looking for more. RBC did lower its target price to $5.50 from $6.00. The stock trades at 11X earnings now. It could see some year-end selling pressure. It is very frustrating but we would not see it as a SELL based on its outlook and low valuation.