Q: I have read most of the recent Q&A on CSU, TOI AND LMN. I understand that they operate in different jurisdictions, have like minded management teams and are majority controlled by CSU. What I don’t understand is why the market loves CSU and LMN and doesn’t have that same love forTOI. What am I missing? Also, what is the probability that the recent run up in LMN stock price mimics the early run that TOI had, and then drops back and stays lower for several years.
Thanks
Greg
Thanks
Greg
5i Research Answer:
It is possible LMN consolidates it recent run, but for now it does seem to be under accumulation. TOI i s up 37% in a year and 11% already in 2024 so is not exactly a wallflower here. The two main reasons for LMN outperformance we think are (a) Faster growth: LMN revenue rose 99% last quarter, TOI rose 22%. (b) Continued investor concern about Europe. TOI has a European focus and the economic situation there is still quite challenged. Additionally, LMN is simply smaller and its leverage to investors buying and individual contracts/deals to it are higher.