mercredi 25 septembre 2019

Viemed (VMD or VMD.TO)

Jason Del Vicario recently went to BNN and talked about Viemed, a company from Louisiana that provides equipment for patients with pulmonary diseases.

Here's a few numbers:

Performance since the beginning of 2019: 84%
Performance since december 2017: 290%
ROE: 27
EPS: from 3 cents (2016) to 26 cents (2019) per share
Debt level: almost no debt
Current PE: 39
Forward PE: 21
Free cash flow growth: Steady growth over the last 2 years

These number are great. There are however 3 caveat: 
1- It's a small cap (280 million USD). I don't really like small cap nor shall you;
2- They missed the estimates over the last 2 quarters;
3- It's on the stock market only since december 2017 (very short track record).

If you can read behind lines, you'll understand that it may be a buy, but a small buy. A long track record is very important in my opinion, which isn't the case here. But, still, on paper, that company has a lot of things I'm looking for. 
A very rare case of an interesting small cap. 

4 commentaires:

  1. Small caps that don't have a long history of I would say of at least 5 to 10 years usually end up in pain IMO.

  2. Hey Penetrator: There is so much to like about VMD-T. I don't have a few hours to go thru them all. BTW:Your 'few numbers' outweighs your '3 caveats'.
    FYI: My small cap portion of my portfolio is up 27% in one year from Sept 2018, not bad for 'I don't really like small cap nor shall you' !

  3. Penetrator:

    How do you feel about ULTA and TTD (the trade desk) after the recent corrections in their stock prices?

    1. Both are interesting! But much more volatility to come with TTD.