VHI VitalHub

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VHI has had a great run-up over the past few years. The past month has been challenging, but it seems the drastic swings have not been unusual for them over the past 12 months

I own a small position in VHI that is up ~60%

What are your thoughts on adding to VHI around the $10-11 price point? Do you still see them as a longer term hold?

Thanks!

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Asked on September 22, 2025 11:59 am
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Valuation is the main concern here for me at this point. When the company started going through that drawdown, it was trading north of 50x free cash flows. Was seeing a pretty steady level of growth but if that slowed down in any way, there was bound to be volatility.

Now that the company is getting a little more attractive, it is more of a viable option. However, I'm still relatively concerned about the valuation unless this company can continue to hit targets. It is expected to double earnings through the next few years here and if it does, I feel there is upside even at $11/sh. Likely got a bit too ahead of itself at $15 though.

Expectations are high on this one, and it needs to deliver.

My only other gripe about the company is consistent dilution of shares. It is known to do this. It can be expected a bit from a small cap growth company, but something you will need to keep an eye on. Share counts have more than tripled since 2020.

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Posted by Dan Kent
Answered on September 23, 2025 8:30 am