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WELL Health Technologies Corp. (WELL $3.85)
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HealWELL AI Inc. Class A Subordinate Voting Shares (AIDX $0.60)
Q: You seem to really like WELL and feel it is undervalued right now - Is that right ? Please give us an update on WELL as well as AIDX. On February 12 you answered a question regarding AIDX saying there was no news in 2 months. On that same day (likely after you posted your reply) there was in fact news on AIDX as well as more news on Feb 19. Are you liking AIDX more now and if WELL's stock price increases do you think AIDX would follow?
5i Research Answer:
We sold the full WELL position in the growth model portfolio late last year, and while we like its fundamentals, the momentum was flatlining and we saw better opportunities elsewhere. We have noted in the past that we think both WELL and AIDX have big upside potential in the right conditions, but that they are both considered higher risk. AIDX has seen negative momentum since mid-2024 and WELL has been flat for several years now. WELL has seen its valuation contract meaningfully, but its margins have not seen a big inflection, and AIDX has decent revenue growth, but it is still unprofitable and generates negative cash flows. We would prefer to wait on the sidelines until either name shows improving momentum.