TSX Venture Investing

Dalsin hopes to replicate PHM success at Convalo Health

TSX Venture Investing > Dalsin hopes to replicate PHM success at Convalo Health

TSX Venture decline

Convalo Health International (CXV:TSXV) was the third most liquid stock on the TSX Venture Wednesday.

The healthcare-related stock has taken the Venture by storm in recent weeks and is being led by former CEO of Patient Home Monitoring, Michael Dalsin. Dalsin remains the Chairman of PHM and is the Chairman and CEO of Convalo.

Convalo Health jumps 7% on 7 million traded

 

Convalo Health, one of the latest and most dynamic healthcare-related stocks on the TSX Venture, servicing the addictions and mental illness markets primarily in the US, to break out, had another epic day in the markets Wednesday.

The stock rallied 7%, after hitting a new all-time high of $0.46 per share, to close at $0.445 after more than 7 million shares traded hands.

 

Convalo Health reacts to changing US Health Care System

 

Convalo Health‘s business model is in many ways is built on the relatively recent reformation of US laws impacting the US Health Care System.

The phrase ‘Mental Health Parity’ which Convalo cites on its website has become more prevalent in the 21st century as mental illness and the treatment options for mental illnesses increase.

In short, mental parity and its implications on health services in the U.S., that US Congress is now forcing health insurance coverage for addiction treatment, has changed dramatically.

Below is an excerpt from Convalo Health’s website:

“The Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA) requires group health plans and health insurance issuers to ensure that financial requirements (such as co-pays, deductibles) and treatment limitations (such as visit limits) applicable to mental health or substance use disorder (MH/SUD) benefits are no more restrictive than the predominant requirements or limitations applied to substantially all medical/surgical benefits.”

source: http://convalohealth.com/mktlandscape?mktpage=1

 

Convalo explains on its website that Obamacare was signed into law on March 23, 2010 by President Barack Obama.

“Under Obamacare, many Americans making under 400% of the federal poverty level (FPL) will qualify for cost assistance subsidies through the marketplace. Cost assistance comes in three forms: Premium tax credits for reduced premium costs, cost sharing subsidies for reduced out-of-pocket costs, and Medicaid and CHIP.”

source: http://convalohealth.com/mktlandscape?mktpage=1

 

The company is hopeful this access to more affordable healthcare, including mental healthcare will make their expansion plans occur more fluidly.

Michael Dalsin: a tale of two companies

Dalsin is the Chairman and CEO of Convalo and the current Chairman and former CEO of Patient Home Monitoring (TSXV:PHM).

PHM has been one of the best performing stocks on the TSX Venture in the past 12 months and has seen its market cap rise to over $300 million lately. Clearly, Dalsin is hoping he can achieve similar success at Convalo.

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Convalo Health’s business model is to search out potential acquisition targets. This has worked well for a handful of TSX Venture healthcare-related stocks, including Patient Home Monitoring.

Convalo explains on its website that it plans to acquire up to 20 in the next 4 years of the more than 1000 small, clinically focused treatment centers in the US.

Retail investors are now waiting for Convalo to announce its next acquisition.

In Convalo Health‘s investor presentation it states that insiders own 27 million shares of the company. There are currently approximately 106 million outstanding.

 

 

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