Investment Q&A

Q: Over 9 million shares sold Friday, institutions stepping back in?

You figure institutional selling is all but over?

Cam

Q: This is an article that might be of interest to members.

http://www.theglobeandmail.com/globe-investor/investment-ideas/patient-home-monitoring-in-a-steep-decline/article26868723/

Q: Hello 5i,

Could you please shed some light on PHM's next earnings release and what are the estimates for revenue & EBITDA? Back in August, there were some talks about 3 or 4 outstanding LOIs, do you have any update on the status of these LOIs?

Thank you

Q: I am still holding PHM . Is there any hope in the near future for this stock or should I sell it?
Margita

Q: Peter, I have three holdings NII, SCR & PHM with rather grumpy performance. Should I continue to hold any of them? And, do you have better replacements to recommend?
With thanks, Colin

Q: Do you recommend Tax Loss Selling? Is now a good time to do it for Guestlogix, Patient Home Monitoring, and Questor Tech.

Thanks, Colin

Q: I know, another PHM question...

In 2015 they acquired $161 million in businesses:
- Black Bear Medical = $10.3 M
- West Home Health Care = $14.2 M
- Legacy Oxygen = $4.2 M
- Sleep Management = $98 M
- Patient Aids = $34.3 M

In addition, their pre-2015 businesses were generating $35 million in revenue and $8.8 million in EBITDA.

The market value of PHM is now $117 million.

Assuming they didn't overpay for the 2015 acquisitions, I'm just wondering how there could be downside concerns, beyond the short-term, from here? Thanks

Q: There has been considerable turmoil in PHM stock price in the last week or so.

Looking back, we see the signs of momentum reversing from those that pushed it higher and now the same crowd walking away from it. People are voting with their feet mainly from fear and from people taken the advice from the President's Letter.

I had a specific question about PHM. They mentioned that the LOIs on the acquisition table are being actively negotiated to be 'all-cash deals'. How successful can these with the incentive for part or in whole stock-based details off the table now?

Q: Good morning, just a clarification to your answer from Imtiaz. Your statement "We have seen a recent President's Letter report on the company, and it basically was throwing in the towel" insinuates that management is "giving up". Is this apparent from the letter? Will you keep it in the portfolio for now? Thanks very much.
Kim

Q: Hi,

Some of the selling in PHM is being prompted by analysts who were earlier recommending it and now backing away from it. Also, the company has revised 2015 annual run rate to 155M from 200M in their updated investor presentation. I think this has to do with their low share price making it difficult to finance new deals. What do you think?

Q: I have seen PHM beaten down from $1.50 to approximately $.50 over some recent controversy. It appears that management is good and their results remain very good so no fundamental change in the companyto warrant such a large drop in valuation. I'm I missing something

Q: Hi 5i: With PHM shares under $0.60, their market cap is down to about $200M. Isn’t that roughly equivalent to their annualized revenue guidance based on their expected run rate at the end of the current calendar year? My understanding is that, but for their acquisitions-related expenses, their underlying business has been operating profitably for some time. Have I got that wrong? It seems like some very significant upside potential is being compressed within this story. I understand that it is a ‘show me’ story since the management changes and insider shareholdings shuffle. I also understand that there is some shifting of the balance toward organic growth opportunities and possibly less dependence on acquisitions in the plan to maintain the growth profile going forward. I see the big question (and risk) as whether the new management can deliver on its promises, to at least maintain the growth level achieved by the prior management. If they can deliver on the numbers guided to, wouldn’t PHM also be on its way to becoming a very compelling ‘value’ investment? Thanks!

Q: Please may we have your expert opinion on the interview @ 12.20pm pst today on BNN.PHM is confident of good results forthcoming.Always appreciate your great views & services. Peter,you were great on BNN yesterday

Q: Today, PHM has returned to form and volumes are coming back to the average. This coincides with a larger percentage jump in shares as of this point in today's trading. Any reason for this large increase that you can glean?

Q: Just had my 'stink' bid filled today at 60 cents. Did I make a mistake and should I turn around and sell it.

So far this has been one of the best shorts in the market?

Trading like it's going out of business.

Q: Hi team.
I have been following the recent debacle in this company and am aware that market sentiment is negative.However,looks like the fundamentals are strong ,management has proven itself in the past,and the company is poised to grow and turn a profit in 2016.Is this a value trap at these levels or a great buy due to "irrational" behaviour from sellers.When would be a strong signal to BUY?
many thanks,
Jean C.

Q: I know PHM isn't part of your coverage universe, but if it was, what kind of rating range will it receive?

Q: Missed Phm conference call yesterday,very interested in your impressions and organic growth. Does company have sufficient cash to continue growing without an equity raise? Many thanks

Q: Did you happen to listen to the conference call? If so what are your thoughts going forward?

Q: I bought PHM in April at $1.60. It has since plummeted to $ .60. I understand that averaging down is frequently like catching "falling knife" but with PHM now having recovered to $.80 I am considering "averaging down" and buying another 1000 shares. What is your opinion. Thanks