Quipt: Warrant Overhang Creates Attractive Prices

Jun. 18, 2021 2:08 AM ETQuipt Home Medical Corp. (QIPT), QIPT:CA34 Comments
Aaron Warwick profile picture
Aaron Warwick


  • QIPT has in-the-money warrants expiring on June 29, after which the stock should be clear to run back to a level closer to fair value.
  • In addition to the warrant overhang, QIPT recently changed names and ticker symbols and uplisted to the NASDAQ, creating some confusion and, perhaps, turnover among investors.
  • QIPT management will be introducing and marketing the company aggressively to US investors over the next few months and beyond.
  • With the worst of Covid behind us, organic growth should become even stronger, with EBITDA margins continuing to expand.
  • I believe a reasonable valuation of QIPT leads to 60% upside from current prices, with a 200% return possible over the next three years.
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I began writing about Quipt (NASDAQ:QIPT), a home healthcare services company, in October 2020, with my first article outlining why I believed the company had a clear path to triple. Since that time, and despite recent headwinds, the company has made many changes (all

This article was written by

Aaron Warwick profile picture
I collaborate with other "Breakout Investors" on WhatsApp (https://chat.whatsapp.com/GQZdsexmag30tbdqV7Yg7R) or on our platform online at app.breakoutinvestors.com as we try to be ahead of the curve, looking for opportunities where the market has not yet figured out or appreciated a company's fundamental business or upcoming catalysts. I have an accounting degree from Creighton University and a Masters in Philanthropy and Nonprofit Development from the University of Northern Iowa. I invest for retirement and as a hobby. I primarily engage in fundamental analysis and look for large discrepancies in what I believe a company is worth and their current share price.

Disclosure: I am/we are long QIPT. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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