Hi there,
While we do like the company - it is important to note that NEWU is simply on our watchlist for the purpose of informing subscribers about interesting and emerging companies. We do not recommend 'buy' targets, but simply provide subs with what we believe to be stocks that provide good value, and have outsized upside opportunity.
Give its status as a micro-cap, it is also unlikely to add it to our Bull List anytime soon. However, we do like the company and believe it does have potential. Since it operates in the virtual health space, it is gaining attention for its disease management platform. Comparing it to DOC and WELL however, this is not a company that is engaged in owning primary clinics, nor is it a serial acquirer such as DOC and WELL. We definitely consider NEWU to be in a lower tier in terms of quality.
It only recently listed, and still has lots of work to do to gain investors attention. It is however, growing at an impressive clip. In the second quarter revenue was up 67% and gross profit jumped by 96% over the Q2 of 2019. Through the first six months of the year, it has already surpassed 2019 revenue. The pandemic has been a boon to the company no doubt. The company continues to grow organically through the addition of new clients to its platform.
We expect considerable volatility with NEWU and as such, is only for the aggressive investor with a higher risk profile.
Mat
(Of note, I have a speculative position in NEWU. )