Q: Hi,
Kits or Well …?what company to you think is better going forward? Sell a losing position in Well in registered account and switch to Kits or just continue to hold Well which has been frustrating. A brief explanation for your rationale would be great. Thanks for all that you do!
Kerri
Kits or Well …?what company to you think is better going forward? Sell a losing position in Well in registered account and switch to Kits or just continue to hold Well which has been frustrating. A brief explanation for your rationale would be great. Thanks for all that you do!
Kerri
5i Research Answer:
Both management teams have sold companies before. KITS is about half the size of WELL, but on valuation (P/E) KITS is about 3x as expensive. KITS, until this year, had far more positive momentum. EPS should grow in the 50% range, vs 25% or so for WELL (when it executes). WELL also plans a spin out which could increase interest in the stock. We will generally side with growth, and are willing to pay more for it usually. We think WELL will ultimately be OK, but it has been a frustrating stock for five years. We need to side with KITS here.