[VIDEO] Market Minute: Patient Home Monitoring, Convalo Health International, Urthecast Corp., NYX Gaming Group
James West discusses Patient Home Monitoring, Convalo Health International, Urthecast Corp., NYX Gaming Group on Midas Letter Market Minute.
Hi I’m James West for the Midas Letter Market Minute for Thursday April 16, 2015.
Patient Home Monitoring (TSX.V:PHM) and Convalo Health Interntational. (TSX.V:CXV) are once again among the biggest traders of the day on the TSX Venture. Patient Home Monitoring is trading at a 52-week high of $1.84 on more than 4 million shares traded, while Convalo is down a enny at $0.69 on volume of 1.8 million shares. Both companies are run by the management team from Canons Park Advisors – Michael Dalsin and Roger Greene. They seem to have perfected a model of consolidation for healthcare sub-sector niche players where smaller companies serving geographically distinct customer groups become more than the sum of their parts when merged into a larger company, become a substantial and growing source of recurring revenue and an expanding database of customers who are then cross-marketed to with additional product offerings.
Both companies are regular high traders. Convalo recently announced the increase of a planned $0.40 private placement from $7.5 million to $15 million, expected to close around April 20th.
We have yet to issue research on Convalo, and believe the share price will come under pressure as investors in earlier financings are currently exiting into the strength now evident in the market based on the success of PHM. We have an interview scheduled with CEO Micahel Dalsin at the end of April, so follow us @MidasLetter on Twitter for that.
Midas Letter Portfolio Holding Urthecast Inc, (TSE:UR) the company that operates two ultra-high definition cameras on the International Space Station, announced the closing of a bought deal private placement at $2 bucks a share for proceeds of $17.2 million with no warrants. The company’s share price has been on a tear since a deal with Pepsico where Urthecast will assist with the brand’s 2015 global program, the Pepsi Challenge
NYX Gaming Group (CVE:NYX) announced 4th quarter and year end results today. Highlights include a 46% bump in revenue to $27.3 million over 2013, and a 43% increase in EBITDA to 6.1 million. The company lost $0.25 per share in 2014. The stock is trading around $4.90 a share at this time after touching a high briefly of $5 per share.
Oil is holding steady around $55 as the Middle East keeps pumping into still-growing stocks while the idling of rigs in the US should finally begin to see production drop in the US toward the end of the year.
This is your Midas Letter Market Minute. I’m James West.
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