I agree, the more I dig the more I think RSH is the better of the two leaders in this sector. RAP management has delivered all these apps and announcements and tie ups but I’m yet to see evidence of sales or revenue. A friend of mine who I asked to do some DD yesterday said the sleep app was light on benefits. He said Resmed has a free app like this one and he said ten years ago he had one called sleep talk that was free and better.
I want to believe the potential for all their products but just need to see a large player partner with them ie. take some commercial risk in at least distributing the products by agreeing to take on the RAP product (by paying for it) and then push the product through their proven channels - I get the feel The coviu and phenix Guys just want to sound progressive so they add this RAP product to their platform to give their offering a perceived ‘Telehealth’ angle, but I am yet to feel comfortable that the model will yield profitable revenue. Time will tell.
But I must say the flurry of announcements leading upto the expiry date of the CEO’s deep out of the money options, smells like they tried their best to get the price up through these announcements so he could exercise and sell what he had to at the highest price. All this to cover the cost of the $1.375m exercise cost with selling as few shares as possible at the highest price.. Looks like shareholders gave him that gift of 10m clear shares - now I’d like to see him gift shareholders with some measurable success - seems to have been one sided thus far in favour of him.
But I hope I’m just being paranoid. Let’s see RAP reach the potential that management has sold to the market - then I’m fired up to join the action. It’s a great sector and one that is just warming up for those companies that can deliver real deals and revenue ! Bring on the second half of 2020
RAP Price at posting:
16.5¢ Sentiment: None Disclosure: Not Held
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