Patient Home Monitoring (PHM: TSXV) has been one of the most well-known issuers on the TSX Venture in recent years and rebounded with a vengeance Monday. For those wondering if PHM has finally seen its low, after hitting just $0.13 per share on February 21st, today may have acted as a sign.
The healthcare-related junior soared 33% to close at $0.22 per share on over 8 million shares traded. For those of you who don’t know, PHM was one of the most talked about stocks on the exchange for many months back in 2015.
The long-forgotten healthcare stock began coming alive last week, trading 3.2 million shares on Thursday and then 3.9 million shares on Friday. Today was its biggest volume day in months.
Patient Home Monitoring – 5 Year Chart
PHM’s meteoric rise came to an end as rapidly as it began. Like it so often does on the TSX Venture, sentiment changed and its valuation came back to earth.
We wrote about PHM many times during its ascent and descent, including in Patient Home Monitoring: the power of acquisitions.
PHM works to consolidate fragmented small privately-held companies
PHM remains focused on a highly fragmented and developing market of small privately-held companies servicing chronically ill patients with multiple disease states caused mainly by age and obesity. The Company’s post-acquisition organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient’s services and making life easier for the patient.
Patient Home Monitoring’s Financials Looking Up
On February 22nd, Patient Home Monitoring posted its Q1 Financials for the quarter ended December 31, 2016. Below is a short excerpt:
“Highlights:
- Revenues for the quarter ended December 31, 2016 were approximately $31,035,000 and gross margin was $24,246,000, or 78%. Adjusted EBITDA was approximately $4,594,000, or 15% which is the highest amount since the first quarter of 2016.
- The Company continued to drive expenses down as shown by the 8% drop in total general and administrative (G&A) expenses (excluding bad debt) from the quarter ended December 31, 2015. Excluding bad debt expense, G&A expenses continued to decline from the quarter ended September 30, 2016 which is a result of the ongoing reduction of salary expense and overall operating costs.
- As of the end of the quarter, the Company had a cash balance of $7,852,000, accounts receivable balance of $23,195,000 and current liabilities of $18,604,000.”
Click here to read the entire press release.
mikebowie jumps in February Stock Challenge
New member of just three and-a-half weeks, ‘mikebowie‘ selected Patient Home Monitoring for February’s Stock Challenge and saw his combined average return gap up 15.26% Monday.
In a tumultuous trading day on the TSX Venture, gold stocks took the brunt of the abuse.
The VanEck Vectors Junior Gold Miners ETF (GDXJ) got hammered Monday, falling 9.58% to close at $36.25. The ETF barely got off its low of the day – $36.08, before the markets could close. Junior gold investors ran for the exits as shares fell and participants took profits. In the great bear market of 2012-2015, investors opted for healthcare and tech issuers, selling off miners to incredible lows. PHM’s rise Monday is a warning of how erratic and fickle the TSX Venture investor can be. In the boom-bust exchange of the Venture you can be a star one day and a loser the next.
The volatile TSX Venture did the dip Monday, falling over 1% to close at 827.21.
