Impression Healthcare (ASX:IHL) has been quiet lately, which is why we haven’t written much. But it remains our favourite deep value play. This shouldn’t shock you. We wrote about the company at length, here (7 March) and here (25 March). These two updates remain highly relevant and explain the core investment thesis, which we will build on today.
Prior to sharing our thoughts on the company’s latest quarterly report, we want to update you on our plans for Trading For Millions over the coming months.
Future Plans for Trading For Millions
Trading For Millions is different from everything else on the internet ― we want to teach you how to trade like a professional. In this case, while we invest our own capital into each company previewed on the blog, we’re in the process of writing trading course for FREE.
The FREE five-part trading course should be live by mid-year (we plan to get it out ASAP). The goal of the course is to help you think like a professional trader. With this power and knowhow, your portfolio should see better returns in the short, medium and long term.
Trading For Millions also plans to add more deep value investment opportunities on the blog. But we won’t add more deep value plays until Impression Healthcare delivers as intended. There’s no point writing about other opportunities ― we want to demonstrate our abilities. We also write this blog for fun and don’t need to churn and burn content for money.
When the timing is right, we will sell Impression Healthcare (we will let you know when this happens) and analyse another deep value play on Trading For Millions.
That time isn’t now.
Impression Healthcare’s register has been cleaned up and the overall business is progressing in the right direction. That’s what you want as a deep value investor at this stage of the game. In our view, the company offers significant potential from current share prices ― especially considering our analysis of the latest quarterly (more details below).
Remember, as communicated previously, we believe that Impression Healthcare is worth ― at least ― 5 cents per share in the short term. That’s our bare minimum target, mind you. It would give the company a market capitalisation of roughly $25 million. Ultimately, we see the share price moving towards 10 cents-plus when everything comes together. Hopefully that move starts playing out in the second half of the year, assuming the stock market holds up.
More deep value investments are coming…
In this case, while we eventually plan to rotate some capital into another deep value play to make the blog more active and interesting, we won’t stop following Impression Healthcare anytime soon. The company could become a titan of the medical cannabis (‘MedCan’) sector, which no one believes right now.
Deep value investing aside, we plan to preview more short-term position trades on Trading For Millions. On this note, while we’re still thinking how to structure this side of the blog (it could be a weekly post or something more concrete), we expect this platform will revolutionise the internet.
Let alone tracking their own medium-term trades (i.e. what we’re doing now), no one provides detailed short-term trades in real time. That’s because there are more frauds and fakes on the internet than real traders and investors.
To sum things up, while covering our main deep value play, our immediate focus is delivering a FREE trading course to amplify your trading performance. Secondly, given our overall mission for the blog, we plan to add more deep value opportunities on Trading For Millions. Lastly, while we remain unsure how to engage with the position trade portfolio, we have plans to beef up the blog with some short-term trading opportunities in the future.
Indeed,with plenty to look forward to in the months ahead, let’s turn our attention to the latest quarterly update for Impression Healthcare…
Position update on Impression Healthcare
First, we’ll provide an update of our position in the company. Foundation readers know we have plenty of skin in the game, across multiple accounts. We wouldn’t write such a high volume of analysis on Impression Healthcare if this wasn’t the case. Here’s an initial position from a smaller account to show our confidence level (dated 2 April 2019):
We originally bought close to $50,000 in the company ― around current prices. That might not seem like much of an investment compared to your stake. But, we own more shares across other accounts and disclosing what we own makes us different from everyone else on the internet.
Standard disclaimer: Do your own research
This disclaimer section is extremely important, as we don’t have a financial licence. So, unlike other financial sites, we choose to put it up the top. We wan’t to hide nothing about our intentions.
You should perform your own research on every company profiled on Trading For Millions. Our analysis is skewed to the positive side, as we hold shares in each company on the blog. Trading For Millions will disclose whether we sell any shares in a company.
We don’t get paid by companies to write research. The incentive is to make good money from the stocks on blog and hold ourselves accountable.
If you invest alongside us, you do so at your own risk.
Remember, we own shares in companies previewed blog, across multiple accounts. For this reason, it’s quite possible, I could be selling every rally with my other accounts. But the above position update is a nominal amount for track record purposes to keep us accountable.
Although we could sell shares in our other accounts, if we earn a poor reputation for picking bad companies, we won’t have many readers! The live tracked portfolio holds us accountable. Plus, any deep value investment, we tend to look for massive triple digit gains.
Trading For Millions will only grow its readership by buying good companies with potential, where you can see the story play out in real time. The goal is to hit multiple homeruns in order to grow.
We’re also not in the business of providing formal stock recommendations or financial advice on Trading For Millions. That may change one day. But not anytime soon.
We are focused on building a track record for now.
If you want to know when to buy or sell a company, you’ve come to the wrong place. Start learning how to trade stocks by reading our free course ― Trader University!
To read the rest of the article, you need to sign up to our blog (for FREE). You can do this below. Becoming a member will give you access to our FREE trading course, Trader University. You will also receive email updates from our Deep Value Investing blog, documenting our live trading journey and the future small portfolio challenge.
Let’s get stuck into the company’s latest story…