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.

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  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' !

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  3. Penetrator:

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

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

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