NEW YORK, NY / ACCESSWIRE / August 25, 2017 / White Diamond Research, LLC, an equity research firm with a focus on small capitalization public companies in the technology and health care sectors, has initiated coverage of Ethema Health Corporation (OTCQB: GRST) with a buy rating. This 20 page report includes detailed information on Ethema Health's business model, services, industry, valuation, and management.
The full research report is available here. Highlights from the report include:
A Rapidly Growing Industry
Ethema Health offers investors a way to invest in the growing substance abuse addiction treatment industry. Studies show the number of opioid deaths in the US is growing 15% annually, and alcoholism has risen 49% in the US in just 11 years. The devastating effects of opioid addiction are constantly shown in the media. On August 10, 2017, President Trump declared the opioid crisis a "national emergency" and stated, "we're going to spend a lot of time, a lot of effort, and a lot of money on the opioid crisis."
High Upside, Limited Downside For Ethema Health
Ethema Health's real estate holdings prevent significant downside to the stock. Ethema owns two treatment centers, one in Muskoke, Canada, and one in Delray Beach, Florida. The Muskoke center is rented out, and the Delray Beach center is run and fully owned by the company. The Delray Beach center is break even at only 14% capacity. Additionally, Ethema Health is in the process of acquiring a detox center nearby the Delray Beach treatment center, and there are strong synergies between the two.
Treatment centers can have high margins. The Delray Beach treatment center is break even at only 14% capacity. At close to near capacity, huge returns are possible. Ethema's CEO, Shawn Leon, has a history of excellent execution in the treatment center business, and has a good marketing strategy and treatment method that are currently attracting and treating patients.
The Sector Is On A Strong Uptrend
The only other publically traded pure play behavior health stocks are American Addiction Center Holdings (AAC) and Acadia Healthcare (ACHC). Both stocks have gone on a strong uptrend the past couple months, which represent how the sector is doing. GRST is benefitting from this sector upswing.
About Ethema Health Corporation
Ethema Health offers addiction and aftercare treatment, as well as out-patient counseling, coaching, intervention, psychological assessment, and other related services. The company was formerly known as GreeneStone Healthcare Corporation and changed its name to Ethema Health Corporation in April, 2017.
About White Diamond Research
White Diamond Research, LLC has an excellent track record for recognizing long, and short, opportunities for small cap stock investments in technology and healthcare. White Diamond has proven its excellence over the years and is ranked in the top 10% of financial experts as shown on tipranks.com. The senior analyst and founder, Adam Gefvert, CFA, continues to provide excellent trading opportunities for premium subscribers and followers.
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Full disclosures pertaining to this report can be found at whitediamondresearch.com. White Diamond Research, LLC was paid $2,500 by a 3rd party to write this report. White Diamond will be compensated an additional $2,500 by this same 3rd party to circulate the report on social media and other news outlets. The views in this report reflect White Diamond Research.
Adam Gefvert, CFA
White Diamond Research, LLC
SOURCE: White Diamond Research, LLC