Shares in Austco Healthcare Ltd (ASX: AHC) were soaring today following a recommendation by Andrew Page, founder of share market research business Strawman. By market close, the Austco share price was trading at 15.5 cents – 14.81% higher than yesterday's close.
However, earlier this afternoon, Austco shares were up by more than 18%, swapping hands for a 52-week high of 16 cents apiece intraday.
Austco is a microcap creating healthcare communication solutions. One of its major solutions is a nurse call system which it believes is the most advanced of its kind. It also provides a reporting and analytics platform for nurse call data and a mobile platform for its nurse call solution.
Let's take a look at what Page had to say about Austco Healthcare today.
ASX pile-in
This afternoon, Page appeared on television program ausbiz stating he believed Austco shares could be a "'life-changing stock".
According to a Twitter Inc user, after Page's appearance, the number of trades involving Austco shares increased 15 times over.
Page replied to the Twitter user saying it was "really silly for people to pile in like that".
In the program, Page commented on the risks associated with investing and noted the additional risks involved with investing in small companies. Of his recommendation, he said:
[picking a 'life-changing' stock] is a game that you have to go to the risky end of the spectrum… It's an area where you only get 3 or 4 out of 10 [recommendations] right.
He went on to explain why he believes Austco shares make a solid investment for his own portfolio, saying:
This is a profitable company. They're making about $3 million in profit. No debt. $6 million in cash. High inside ownership…. I think they've got a lot of potential here. If they can keep implementing these solutions [and] continuing to win, there's a lot of upsides.
Those interested can watch the entire segment here.
Austco Healthcare share price snapshot
Thanks in part to today's gains, the Austco share price is sitting more than 56% higher than it was at the beginning of 2021. It has also gained around 96% since this time last year.
The company has a market capitalisation of around $44 million, with approximately 284 million shares outstanding.
