Getting ready for the great annual Russell Index Rebalancing act? A list of companies going in and coming out makes its debut after market today. Until then, have you taken a look at NUTX yet?
This $10 stock sure seems to trade a lot, though not sure how the borrow might be. Certainly quite a few shares out there…
“As of May 13, 2022, there were 645,361,540 shares of common stock of the registrant, $0.001 par value per share, issued and outstanding.”
If you look at the most recent March 31 2022 10Q the number of shares outstanding is closer to 50M with another 19M or so options and warrants. So how did the number of shares spike up so high? And maybe more importantly, why is this thing worth north of $6B? Is this the next hot thing?
Turns out that, of course, this is a recent reverse merge into a crappy quai-shell, one called Clinigence Holdings, that was in the midst of doing something of its own rollup. That old rollup was trying to be some sort of a SaaS play in the healthcare space, as can be seen from this description in their 10Q:
“The Company is a population health analytics company that provides turnkey SaaS solutions that enable connected intelligence across the care continuum by transforming massive amounts of data into actionable insights.”
Whoever wrote that should go into presidential speech writing, since it tells you absolutely nothing. Nevertheless, they supposedly were doing up to $5.4M in money-losing quarterly revenues before deciding to do an about-face and merge with a chain of micro-hospitals.
The new Nutex is supposedly “one of the largest independent operators of micro hospitals and hospital outpatient departments in the United States.”
So there you are. From SaaS provider to outpatient services provider in one fell swoop. They provide no financials with this acquisition (they call it Micro Hospital Holding), at least not yet, but do tell us that they own 21 facilities in 8 different states, be they micro hospitals or outpatient hospitals, and they also administer Independent Physician Associations (IPA’s) that has over 800 physicians in their network. These “micro hospitals” appear to be more like what I would consider an outpatient clinic; they have like 8 emergency rooms, maybe 4 rooms for overnight stays, and maybe 4 doctors on call. Tiny.
Seems like a pretty big switch, but it might just have something to do with the new management they hired in 2021. Former CEO and now President Warren Hosseinion is the former co-founder of Apollo Medical Holdings (AMEH), a California version of what they are trying to do now down in Texas. It’s interesting to note that the California version he is trying to emulate does around $1B in annual revenues and has a network of 9600 or so contracted doctors while his new startup has a market cap that is multiples of AMEH and has revenues which are sure to be fractions of his old firm. This story seems to get repeated fairly often.
As far as the new stockholder are concerned, there is a rolling 6-month lockup period on chunks of the 590M shares in the new management hands, so the stock trading now would be from the original owners, and there were maybe 50M of those shares out there.
If you manage to find some shares out there, I think it’s worth your time to take a look.