Eugene Robin and Andrew Leaf from Cove Street discuss their investment in Viemed. Viemed targets organic growth rates over 30%, yet the company only trades for ~15x free cash flow. Andrew and Eugene lay out their case for why the market is wrong on this one, including why VMD's business model is advantaged versus their competitors and why they aren't scare of a Medicare cut in the near to medium term.

Cove Street's first podcast appearance on Viasat (VSAT):    • Cove Street Capital on Viasat $VSAT  

Chapters
0:00 Intro
1:10 Viemed overview
4:30 Typical use case for VMD's ventilators
7:35 Discussion of COPD market
12:35 How VMD's business model is different than peers
24:20 Why is the market valuing a 30% organic growth business at 15x free cash flow?
33:20 Medicare cut risks and what happened in 2016
39:10 VMD's acquisition potential
42:00 VMD's moat with hiring therapists
47:00 Discussing VMD's bad debt expense
50:00 COVID's impact on VMD
53:30 Cove Street's price target
59:40 Parting thoughts