Q: Hi Peter,
I have a question on Well Health and their Competition Bureau issue. Would it not be bullish for a company of Well's size to be considered to have a competitive edge on Telus, Loblaws et al considering it only has about 2% of the Primary Care clinics in Canada. I am wondering if this is an opportunity especially during tax loss.
I have a question on Well Health and their Competition Bureau issue. Would it not be bullish for a company of Well's size to be considered to have a competitive edge on Telus, Loblaws et al considering it only has about 2% of the Primary Care clinics in Canada. I am wondering if this is an opportunity especially during tax loss.
5i Research Answer:
Yes and no; generally it is a sign that the company is making solid inroads, and its AI solutions are seen as 'better' than the competition. BUT...the government can force changes if it believes it has a competitive edge that is unfair. The healthcare sector, of course, is highly political and thus regulations could happen that are not necessarily 'wise'. We do think the stock has pretty good 'bounce' potential after its big decline this year.