Investment Q&A

It is a difficult concept. One helpful solution is to look at one's own sentiment. If an investor finds a stock 'frustrating' then it is helpful to remember that this means there are thousands of others who likely feel the same way. Stocks that are 'annoying' tend to get sold, and prices can drift lower, until there is a catalyst to change this sentiment. It could be earnings, an acquisition, or something else. Balance sheet strength can move sentiment as well. In a bad economy, investors do not like leveraged companies, due to the added risk. Management execution (beating estimates on a regular basis, or not) is another big sentiment factor. We also like to look at press releases. Some companies (and WELL is a bit guilty here) like to put out press releases that are not that material to the company. If a company does this too much, investors tend to ignore releases and good news can be met with a 'meh' response. We also don't like so much companies that hype 'trillion dollar opportunities' or are otherwise promotional. Just let the numbers speak for themselves. If they are good, the stock should follow. WELL has the added sentiment of a) being a small cap company, and b) having had to deal with the excitement, and fallout, of the Covid run up. Digital healthcare was all the rage during Covid, and the stock spiked. But health care is always an industry that can be slow to change. Despite the stock price, we do think the company is managing this transition well. Many peers are essentially fading away (i.e DOC). Price momentum, unfortunately, is also a big factor in sentiment. Investors 'feel good' when a stock price is rising, and tend to reward such companies with higher valuations (until something breaks). The opposite is true. A stock with a weak price tends to be sold, regardless (up to a point) of financial results. When a stock is down, investors often believe 'something is wrong' even when it may not be.