The Motley Fool

Here’s why this healthcare stock rocketed up 30% yesterday: Is there more to come?

Impedimed Limited (ASX: IPD) has a focus on developing medical applications. The company’s technology has numerous medical and non-medical uses. Management has been anticipating that it will execute solid growth upon developing its first commercial opportunity.

Despite the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) falling marginally yesterday, Impedimed rose 12 cents or over 30% to close at 51 cents.

Yesterday’s game-changing announcement:

The company was granted reimbursement status in the U.S. for all relevant cancer types using the L-Dex procedure for the assessment of lymphedema. This is a progressive swelling that may occur in patients following cancer treatment. The reimbursement status enables all Medicare eligible patients to be reimbursed by the U.S. government.

CEO Richard Carreon said: “This is a real game-changer for Impedimed”. The new addressable market is estimated to be in excess of US$ 350 million per annum as lymphedema affects nearly 1 in 3 cancer survivors and there are over 900,000 new cancer cases per year.

Are there catalysts for further share price upside?

A number of positive potential tailwinds include:

1. A strong pipeline of product opportunities.

2. Additional non-medical applications.

3. Expanding into new geographies.

4. Creating new and leveraging existing partnerships.

5. Targeting top 200 practices in key Medicare states. Already 7 out of 10 U.S. cancer institutions have commenced using L-Dex.

In my opinion, Impedimed has further upside due to the potential for further announcements. It is wise in the case of high-risk/high-return stocks to invest only a minor part of your total funds. The bedrock of your portfolio should comprise lower-risk stocks. Fortunately our top analysts have been researching just such a stock.

If you would like to find out the name for FREE, just click on the link below to receive your report immediately. Stocks like this one have a juicy dividend yield, strong growth and an attractive entry level.

NEW! The Motley Fool's #1 Dividend Pick

Don't miss it! Top Motley Fool investment advisor Scott Phillips has just named his #1 dividend-paying stock for 2014-2015. With solid growth prospects and a fat, fully franked dividend, this ASX stock could be a huge winner for your portfolio. Discover the name and code FREE by clicking here now.

Motley Fool contributor Mark Woodruff does not own shares in any of the companies mentioned in this article.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.