The Oneview Healthcare PLC (ASX: ONE) share price had gained more than 12% in mid-afternoon trading to $4.10, despite no official news from the company.
Oneview offers software for the healthcare network, such as hospitals, clinics and medical centres. The company recently announced that its Mobile Patient Engagement Platform had gone live at Sydney Children’s Hospital at Westmead. The software links patients to their care before, after and during their stay.
Displaying its flexibility, Oneview’s My Health Memory platform is an entertainment and communication platform for parents, with free access to Foxtel, Skype, web browsing games, movies on demand and free-to-air TV. Combined, Oneview’s systems should allow patients to manage their care better, as well as reducing the workloads of nurses and doctors.
So far, Oneview has installed its products into 20 healthcare facilities across the United States, Australia, the United Arab Emirates and Ireland, and in March 2017 was expected to add another 15 facilities to that list. The company is also planning to expand into aged care facilities in the near future – as they have similar requirements for patients as hospitals and clinics.
So why has the share price of this healthcare technology stock jumped today? Simply because it is highly illiquid, with only 28,000 shares changing hands – worth just $115,000 in three trades. One trade accounted for just over 26,000 shares as well. Given the illiquidity, Oneview’s share price could easily sink more than 12% tomorrow if a seller wants to get rid of their shares for whatever price they can get.
For investors considering dipping their toes in, the key to watch will be the quarterly cash flow reports and the 2017 half year results when they are released in August. With many technology companies, they may announce contracts with new clients, but in some cases, those will only be trials or short-term pilots. The key will be generating revenue from those contracts.
Oneview could end up becoming the next Pro Medicus Limited (ASX: PME), which now boasts a market cap of $530 million, if it is successful. However, there are plenty of disappointments in the healthcare technology space, including Azure Healthcare Ltd (ASX: AZV), which looked promising but has a market cap of less than $20 million these days. Investors might want to check out the report below for more ideas.
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The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.