Ethema Health Corp (GRST)

[stervc]

Think1st, let's put some GRST thoughts into perspective...

Naaaa, I won't stick to 40 beds because I believe that they will grow forward from 40 beds and not go backwards. That post was courtesy of a person name Airdale1. I'm going to defend that post because I do believe in it still. Let's put some things into proper perspective.

The #1 reason why we all buy a stock is because of... potential. We all buy a stock today under the premise that its potential will warrant the stock to be trading at some higher price in the future for us to obtain a profit. Nobody buys a stock today if they have already achieved or maximized its potential for growth.

I say this because I believe GRST is still in its infant stages and will eventually have way more than 40 beds although 40 beds is a solid start. That post was done by Airdale1 before they had even gotten their 40 beds if I am not mistaken. Regardless, that post was done under the thought for giving investors an idea of what GRST could be fundamentally worth if they achieve what the CEO stated for their potential of over 1,000 beds as indicated below as part of their growth plan:

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=159195744
8- He has a growth plan for over 1000 beds and we are at the beginning of that growth cycle. It has taken a long time to get to this point and we are just getting started (at :26 seconds):
https://americanbusinesstelevisionnetwork.vhx.tv/stocks-fast-movers/videos/ethema-health-corporation-otcqb-grst

Me personally, I didn't take the risk into GRST on the premise that all they were going to have were 40 beds. Don't get me wrong, it's a good start from having zero beds which is more than what they had when I had originally invested into GRST. Let's break down though what GRST is worth based them having 40 beds as if one had gone through some of the earlier due diligence (DD), they would see that each bed is expected to generate approximately $20,000 per month per bed on the low end...

40 Beds x 20,000 Per Month Per Bed = $800,000 Revenues Per Month

$800,000 Revenues Monthly x 12 Months = $9,600,000 Annual Revenues

Key Variables to Consider
** $9,600,000 Annual Revenues
** 25% Net Profit Margin (based on minimum from new demand)
** Outstanding Shares (OS) = 2,262,849,130 Shares
** PE (Price to Earnings) Ratio = 25
Important to Note: Use the Substitution Property to substitute out any variable that later is known as an actual value.

Using 25 as the PE Ratio is very very conservative. As you can see, the Healthcare Industries are hot as the growth rate or PE Ratio to use as the valuation multiple ranges from 131.32 to 159.85 below.

Key Formulas to Derive Fundamental Valuation
Revenues x Net Profit Margin = Net Income
Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)
EPS x PE Ratio = Share Price Valuation

So...

$9,600,000 Annual Revenues x .25 Net Profit Margin = $2,400,000 Net Income

$2,400,000 Net Income ÷ 2,262,849,130 Shares (OS) = .001 EPS

.001 EPS x 25 PE Ratio = .025 Per Share GRST Valuation

So, based on the 40 beds that GRST currently have, the company's fundamental is currently at .025 per share. Now use the Substitution Property to do the math on its potential if they were to grow having over 1,000 beds like in the company's presentation. This is why I still believe GRST is still in its infant stages of growth and still unknown to the market.

The news today adds an additional 12 beds from 40 to 52 which adds an additional $2.88 Million worth of Revenues I believe:
https://www.otcmarkets.com/stock/GRST/news/story?e&id=1879509

If you go back to some earlier posts and listen to one of their earlier interviews, you will see that they also have other acquisitions on the table to get them to a much larger amount of beds. This was a very good post, courtesy of Airdale1, that I think all should go back and read in greater detail:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=159195744

This post is made to help one see how I see things. Maybe it will help some with their research of GRST, maybe it won't. In the end, all must do their own due diligence (DD) to confirm for themselves that GRST is a good investment for them. For me, I'll be here for the duration.

v/r
Sterling