CRH Medical updated January 13, 2021

CRH Medical is updated and rated Speculative Buy at U.S. $2.23 or Canadian $2.83. This is very much a niche business as it provides anesthesia services for colonoscopies at some 66 walk-in clinics. It operates exclusively in the U.S. and mostly in the South East. It relies on contracts with those clinics. The stock fell recently when its largest group of clinics with 12 clinics announced that they do not plan to renew the contract when it expired at the end of October. The company explains that this particular contract was its first and that all subsequent contracts have much tighter renewal features. The stock is probably now pricing in the loss of this contract. Therefore if they manage to negotiate a renewal that will be an upside. This company suffers from various accounting complexities which have probably kept its share price lower than it should be.

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