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CloudMD: Catalysts For Growth In A Pandemic.

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Art Tsai's Blog
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  • CloudMD (TSXV: DOC) will continue to grow into the second quarter of 2021 as the pandemic is still a concern.
  • The company has made multiple acquisitions at the end of 2020 and beginning of 2021 to drive higher growth.
  • COVID-19 restrictions had a negative impact on one's mental health. Can CloudMD fill in the gap by providing more accessible mental health services?
  • The telehealth industry is not going away anytime soon due to the prolonged delay of vaccine shipments within Canada.

CloudMD's performance...

CloudMD is thriving within the telehealth sector – growth has accelerated due to COVID-related restrictions. The stock continued to climb from $0.74 when the company first went public in June of 2020 up to $2.66 just last week. Many are still left to wonder: does CloudMD have room to grow?

(CloudMD Presentation Jan 2021)

What is CloudMD's key advantage?

In recent months, the company has made many notable acquisitions. In January, CloudMD successfully acquired CMD, the largest medical directory in Canada- with more than 91,000 full-time physicians. Recently, CloudMD acquired West Mississauga Medical Clinic - a well-established brick-and-mortar medical clinic that serves over 100,000 patients. Finally, the company's proposed acquisition of SnapClarity- a digital mental health wellness tool - will have a positive effect on CloudMD's share prices. Multiple acquisitions have the potential for CloudMD to reach its price targets of $4.00. Since CloudMD has been acquiring multiple digital healthcare brands: can the growth be sustainable moving forward?

The recent acquisition of SnapClarity for $3.35M was one of the biggest. Multiple lockdown orders and limits on public gatherings have an impact on individuals' mental health. Recent surveys even suggest "up to 80 percent of adults have reported the pandemic as a significant source of stress" (BayStreet Staffs, 2021). CloudMD is trying to make mental health care more accessible by making it virtual. 

(CloudMD Presentation Jan 2021)

The recent announcements of both Moderna and Pfizer vaccines back in November may have been a source of contribution to cause CloudMD to drop in value. With the vaccines authorized in Canada, the logistics of delivering the dosage to many healthcare workers has been a challenge. The delays in vaccine shipment have caused many to remain skeptical of the expected timeframe to be vaccinated. The slow rollout of vaccines could even mean that the pandemic may not be over by 2022. In the meantime, for patients with non-life-threatening illnesses or those who want to visit local family physicians without the hassle and risk that comes with an in-person appointment – CloudMD will continue to serve many individuals across Canada via telemedicine.

(CloudMD Presentation Jan 2021)

The future of CloudMD? 

We can expect the share prices of CloudMD to climb upwards until the end of the second quarter of 2021. The price target could be as high as $4.00 a share!

Those who already purchased shares in CloudMD should remain patient! We feel CloudMD is a bullish opportunity.

The telehealth sector will change the way that we interact with healthcare professionals in the future. On that note, there will always be a select few individuals who will prefer to visit healthcare professionals through in-person interaction once the pandemic is over. For now, telehealth is here to stay!

This article was co-written with Harkirat Ahluwalia and re-posted on the author's Medium profile. Visit at https://medium.com/@harkirata44/cloudmd-catalysts-for-growth-in-a-pandemic-cc8c350c6e5]


Staff, B. (2021, February 09). Mental Health Demand: Nearly 80% of Adults are Stressed with Pandemic. Retrieved from Mental Health Demand: Nearly 80% of Adults are Stressed with Pandemic

Analyst's Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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