QIPT - Quipt Convertible Debenture Hedging Provides An Incredible Opportunity
- QIPT shares held up well through the January small cap bloodbath but took a nosedive in February 2022.
- I believe this sharp and sudden drop in share price is directly related to a specific balance sheet headwind the company faces - convertible debentures.
- QIPT shares reached a 52-week low at nearly the exact price of the conversion (CAD $5.20/share) on the exact day that conversion could be forced - I think that was no coincidence.
- Fundamentally speaking, the company is stronger than ever and appears to be extremely undervalued, meaning shares could see a meteoric rise once debenture conversion is forced.
- Recent acquisitions in the home healthcare space support my argument that QIPT is massively undervalued by the market at this time, with possible returns of 385% over the next few years based on those valuation metrics.
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Quipt Convertible Debenture Hedging Provides An Incredible Opportunity