I have a strong conviction on this stock but it is so hard to value right now and at what price. A massive share price jump today considering they haven’t won any new contracts or new customers in the last month - still 36 contracted and by my calcs they require at least 50 clinics for breakeven.
The implementation pace is quite slow suggesting they haven’t yet developed a cookie cutter approach and each new implementation requires a lot of resources. At this rate I’m guessing they will have 18 out of 36+ clinics active by next month.
I would also like to see more clarity of this $33m deal pipeline. Its a red flag when I see management being vague but throwing around big numbers in context of their market cap.
The chart looks positive with a breach on the upside but has it been overdone today?
In summary a high risk stock for potentially higher returns, not convinced we have seen an inflection point and will wait to see the translation of contracts into revenue and the average revenue per clinic. I can understand the excitement but not for me at this stage - too much risk.
Any thoughts what this is worth today with justification?
OVN Price at posting:
46.0¢ Sentiment: None Disclosure: Not Held
