DOC - DOCTOR CARE ANYWHERE

Listed: 4 DEC 2020 Headquarters: United Kingdom

Since listing: -50.54% Last 12 months: -65.93%

Doctor Care anywhere is targeting the 15 or 20 minute consultation market, where you can talk with a virtual GP, an Advanced Nurse Practitioner or a prescribing clinician. Though they say ‘citizens of any country’ can use their service, they’re predominantly servicing users in the UK and Ireland.

What’s going well?

Quarter on quarter growth was strong to end out the year. Q4 revenue 35.9%, Consultations 22.7% and Activated Lives 11.9% to 675,000. ‘Activated Lives’ are people who have “signed up for the service and entered their personal details”. The company also booked a net loss of £8.04m in FY21, which is an improvement of 57% from FY20, though they’re not expected to be profitable for at least the next 3 years. They have over 12 months cash runway, so a cap raise would only be likely if it was used to fund new expansion or acquisition plans.

What’s not going well?

A 35.7% gross profit margin isn’t great for an internet based company. Likewise 65% returning patients means they’re not offering an enormously sticky product. An average of 2 visits per patient per year is also quite low given COVID, ongoing prescription renewals, sick notes, etc, which suggests that patients are still favoring a GP for anything more than just your bare basic requests.

What are the good signs?

$29.2m worth of shares purchased by value investment fund managers Perennial Value Management Limited in the last 12 months while they have only sold $3.2m worth. They hold approx 27.96% of the company at present. This shows at least someone out there values the stock and believes in the long term future of the company. CEO and co-founder Bayju Thakar holds 3.84% and NED David Ravech holds 13.43%.

What are the bad signs?

The company has an $86.4m market cap and yet is paying an absolute bucketload to their three key people. The CEO is on a cool $1.53m a year (converted from GBP), CFO $819k, and Chairman $526k, so they’re not running a lean operation by any means. That’s 3% of the market cap being spent on three wages a year, which strikes me as a concern for a company that’s shed half its market cap in less than 18 months.

TLDR: Has potential if they keep growing. Add to watchlist.

GLH - GLOBAL HEALTH LTD

Listed: 4 APR 2000 Headquarters: Melbourne, Australia

Since listing: -94.13% Last 12 months: -3.75%

GLH's Principal Activity is the development, sales and support of application software for the healthcare sector and development of systems integration software that enables data to be securely exchanged between multiple, disparate applications within an enterprise and across the healthcare value chain.

What’s going well?

$7.48m revenue is a 20% year on year (YoY increase. Recurring revenue was up 11% YoY while expansion revenue was up 24% YoY. The company has $4.84m cash on hand, so they’re unlikely to require another cap raise any time soon. Management salaries are fairly reasonable with three big dogs in the $200k-$250k. Only former CEO Alumootil Cherian seems to be on more, a sweet $485k executive director salary which he appears to have grandfathered in for himself, along with currently owning 41.29% of the company.

What’s not going well?

The company has been ASX listed for 22 years and has a market cap of $21.5m, which suggests it’s not going anywhere fast. They completed a $7.8m cap raise, which is 33% of their current market cap which basically means the company is on life support unless they can turn it around. Their annual report made a special point to mention the two clients onboarded last year Ballarat Community, Peninsula Health and the two new signups Waratah (yes, they just said ‘Waratah’), and New South Wales Rural Fire Service. Two new clients a year is abysmal. The company lost $488k in FY21. That they’re still unprofitable after 22 years is a sign they’re pretty useless.

What are the good signs?

The company is exploring new consumer markets in the ASEAN region. It must be said this strikes me as odd given they struggle to sign up companies in Australia, why would you expand your sales channels overseas? The company has undertaken a review of their SaaS upgrade strategy and have shifted R&D focus to enhancing the SaaS platform. Which means in FY21 they’ve finally realised SaaS is the way to go if you’re a software provider.

What are the bad signs?

Their ‘About Us’ page reads like a corporate buzzword bingo page and uses a lot of words without saying anything at all, a personal pet peeve of mine. Take a look at this snippet: Our applications help streamline the delivery of healthcare services to provide better health outcomes, and our software targets organisations that provide healthcare services to people living with chronic conditions such as Mental Health illness, Diabetes, and Cardiovascular disease. With a portfolio of SaaS and software applications, we help health businesses be more efficient and better manage patient outcomes. Global Health’s software is designed to support healthcare services delivered anywhere but particularly healthcare delivered in the community and in the home, with the goal of avoiding or delaying the deterioration of an individual’s health condition.

TLDR: Dog stock, almost worse than investing in fish farming.