Can you give an update on NPTH?

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Hey Matt/Dan,

I have like 4K units of NPTH I bought a couple of years ago. Just would like to know your current opinion on this company.

Can I continue to hold? (it has been reduced to peanuts anyway and I am in no rush).

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Asked on April 5, 2023 12:18 pm
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Thank you for your input Mat. I can certainly wait it out.

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Posted by Kathir Yegan
Answered on April 6, 2023 8:03 am
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Hey there,

Assuming you mean NewPath Health? I'll be honest, the entire small cap healthcare space has been decimated. You look at JNH, DOC, NPTH, etc - they all are down significantly from multi-year highs. I think that in most cases, the drops are a little overdone but patience will be needed for these company to recover. IN NewPath's case, at least they continue to grow on a revenue basis but the biggest drawback is that they are no profitable even though they are generating positive EBITDA. The company did some restructuring in Q3 which should help with operations as well.

TBH - if you can afford to wait it out - it may be worth it as there may be some value here. The company only has a market cap of $5M right now which does seem cheap. The company's new CEO seems to be taking the right steps and if you haven't already - I'd have a read of their recent letter to shareholders:
https://finance.yahoo.com/news/neupath-ceo-letter-shareholders-123000008.html?.tsrc=rss

You do have to take the letter with a certain skepticism but what he is saying does make sense and does seem logical. The company still needs to prove itself and has a long way to go, especially in this environment that has not yet fully warmed back up to small caps. If it were me, I'd likely wait it out a few quarters with the new CEO at the helm to see how the company executes. All in all however, it likely won't be a quick turnaround.

Mat

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Posted by Mathieu Litalien
Answered on April 6, 2023 7:07 am