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Viemed HealthcareVMD.TOTOP PICKAug 01, 2023Stock price when the opinion was issued
As of Dec 21, 2023. Market Open.
VMD EPS of 4c beat estimates of 3.5c; Revenue of $39.6M beat estimates of $38.5M. EBITDA of $8.3M beat estimates by 3%. Sales rose 23%; EPS though was flat year over year. EBITDA rose 15%. 2Q Guidance was maintained and another acquisition was announced. Cash rose to $23.5M (no debt). We would consider it a good quarter.
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He didn't like it for a while, but now more than before. The telehealth space is getting crowded and they've had issues with CMS code. It's a good American company, though doesn't receive much attention here. VMS is merely okay. He prefers other names like Knight Therapeutics. It's a decent, second-tier company.
When markets hit 52-week highs and signs point to frothiness, where do you put your money? The safe route is a savings account paying 5%. The riskier one, but could pay you more later, lies in unloved sectors. Healthcare is one. As a ventilator company, Viemed thrived during the pandemic, which explains its 174% rise in the last five years. This year has been a different story as VMD jumped to $16.25 last April, but has sunk to $11.50. (These are its TSX prices. This Louisiana-based company trades on the NYSE as well.)