Canadian Healthcare Tech Stock Continues to Do WELL

Shares of WELL Health Technologies Corp. (TSX:WELL) have skyrocketed more than 1300% since we first wrote about the Company in March 2019

Capital Ideas Media | October 28, 2020 | SmallCapPower: We first wrote about WELL Health Technologies Corp. (TSX:WELL) back in early March 2019, and its stock price has skyrocketed more than 1362% since (this may have been our best idea so far).

(Originally published on Capital Ideas Media on August 25, 2020)

Win Big With Our Small Cap Picks


[Editor’s Note: Shares of WELL Health have surged 56% since Capital Ideas wrote about the company again about two months ago.]

[Please click here to get immediate access to curated research in the weekly Capital Ideas Digest with our free 30-Day Trial.] 

WELL Health is an omni-channel digital health company that operates Primary Healthcare Facilities and is the third largest digital Electronic Medical Records (EMR) supplier in Canada, in addition to a national provider of telehealth services. WELL owns and operates 20 medical clinics, provides digital EMR software and services to over 1,900 medical clinics across Canada and is a majority owner of SleepWorks Medical.

WELL Health is run by Chairman and CEO Hamed Shahbazi, who sold his previous company, TIO Networks, to PayPal for more than $300 million.

Paradigm Capital analyst Daniel Rosenberg recently initiated coverage of WELL shares with a “Buy” rating, calling the Company an “M&A machine with a large runway for growth.”

“We believe WELL is in the early innings of establishing itself as a technology leader in the digital healthcare sector,” he wrote.

“For investors it is an M&A compounder, which can drive value within the massive healthcare market that is ripe for digital transformation. WELL owns 20 primary healthcare medical clinics, is Canada’s third-largest EMR (electronic medical record) provider, and operates a national telehealth service. The company invested in a number of other technology assets. Since early 2018, WELL has completed 15 transactions, including 12 acquisitions and three equity investments driving rapid growth from revenue of zero in 2017 to a current revenue rate of $44 million. Leadership has shown an exceptional capability to execute disciplined accretive M&A and to acquire valuable technology that can scale. Secular changes accelerated by the pandemic are strong tailwinds supporting WELL’s strategy to leverage technology and drive efficiencies in healthcare, in turn improving patient outcomes and generating shareholder value.”

During Q2 2020, WELL achieved record quarterly revenue of $10,578,144 and gross profit of $4,226,831, representing 43% and 88% year-over-year growth, respectively, adding that COVID-19 has caused “an acceleration of WELL’s telehealth business.”

To read our full disclosure, please click on the button below: