An account related to LOTM has a small share position in this company.
We are trying to diversify into industries that we believe are over-sold and worthwhile and calling a core holding. Signify Health fits this description.
Technically the shares are breaking out above its 150-day moving average. It is already well above its 50-day (in the chart I have a 45-day MA). This will get the attention of algos as it crosses the 150 MA.
The company is basically a data analytics and payment company in the Healthcare field. They have about $345 million more in cash than they have in debt.
The share price is emerging from a Stage One Chart Pattern into a Stage Two Chart Pattern.
A key factor is the short interest is very large. eTrade has it at 29.5% of float. Finviz (below) has short interest at 12.9%. Price crossing mA of 150 has got to get some of them thinking they are on the wrong side of the trade. There is a potential for a short squeeze however we are not buying as trade – we consider this a potential core holding.
Stats from Finviz:
Biggest negative is revenue is flat – thus showing no growth. 2022 does project a pick-up in revenue.
From the recent 2021 year-end numbers Press Release.
Financial Highlights
Full Year 2021:
- Full-year revenue of $773.4 million, an increase of 27% from 2020
- GAAP net income of $9.9 million compared to net loss of $14.5 million in 2020
- Non-GAAP adjusted EBITDA of $171.2 million, an increase of 37% from 2020
Fourth Quarter 2021:
- Fourth quarter revenue of $181.4 million compared to $193.5 million in 2020
- GAAP net income of $32.4 million compared to $0.7 million in 2020
- Non-GAAP adjusted EBITDA of $40.2 million compared to $38.9 million in 2020
2022 Guidance:
- Signify Health estimates the following full year 2022 results, which reflects Caravan Health results for ten months of ownership in 2022:
- Total GAAP revenue in the range of $948 million to $971 million; and
- Total adjusted EBITDA in the range of $212 million to $222 million.
LOTM Research & Consulting Service
* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
Please refer to our web site for full disclosure at www.LivingOffTheMarket.com ZTA Capital Group, Inc.
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