Friday, August 10, 2018

Viemed Flies

Just a few months ago, I wrote about the potential of Viemed as a value stock. Since then the share price has pretty much doubled, without much of a corresponding change in the business. As such, I have sold my shares.

The company has only reported once since I wrote about them, but I guess the efficient market *really* liked that report (lolz). In truth, it probably took some time for the market to find this one, as it was a spin-off that eventually got uplisted and investor-relationed etc., which helped get the story out.

It's possible I sold wayyy too early, as the growth potential of this company is massive. But at it's new price, I just couldn't get comfortable with the downside, especially since the prices they charge for most of their revenue is regulated by the government. A rate-cut could happen at any time, so I'd rather invest my money in a company with a lower multiple. Good luck to all!

Disclosure: No position

1 comment:

Vincent said...

Hi Barel,
I also sold half of my position and am nor far from pulling the trigger on the other half. What did it for me was not the valuation ( stock is still relatively cheap given the growth) but the crazy amount of options, restricted shares and other long term incentives that management grants themselves. In fact, they gouged so much that they have been able to turn huge revenue growth into virtually no income growth - pretty outrageous. I was disapointed to see that none of the conference call participants asked a single question about so much gouging for such a tiny company.