CMP is developing a burgeoning e-Health business that is set to...

CMP is developing a burgeoning e-Health business that is set to dominate the massive Chinese and Asian markets - and it has ZER0 competition.

This is in addition to CMP's SPAP sleep apnea device - a rival product for ResMed (ASX:RMD), capped at $8 billion.

SPAP has been found to be "non-inferior to Resmed's most advanced systems on all measures"




But its CMP's e-Health offerings that look like turning CMP into a $1 stock or higher - at $1 CMP would only have a market cap of $140 million.

Revenues for the financial year just gone were $31 million, and CMP moved to cash positive with a net profit after tax of almost $1 million.

This revenue and profit is not including the $6 million worth of orders sold but not yet paid for by customers.

CMP's most recent announcement added to a long line of recent revenue generating deals and contact wins.

The new contract with its Chinese distributor, Bestmed, will bring revenues of US$5 million for CMP's new eHealth platform and up to $13.2 million 5 years.

From the ann:

"These new Compumedics Medical Innovation Services have a  5 year market outlook of US$50-$70 billion for wearable technology, US$8 billion for mobile health and US$35 billion for telemedicine.

CMP has now secured 5 commercial partners in key Asian markets to finalise its products, technology and the platform.

There are currently are no known competitors in this domain."

Besmed is also a substantial shareholder in CMP, and together are now #1 in the Chinese market for imported sleep diagnostic equipment.

And the ann also came with a hint that CMP may be in preliminary diaogue with multinational telecom and I.T. firms that are looking to cash in on the e-Health opportunity.

A deal between an e-Health provider such as CMP and a major telecommunications company would be big news.
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Big dollar accumulators at work around the 12c and 12.5c mark

The OBV chart shows this continued soaking of shares over the last year. CMP broke out a few weeks back to 16c, retraced, and started to move back up, breaking the 10.5 and 11c resistance and consolidating above 12.5c.



When CMP breaks 16c its game on - and stays a low risk entry below that.

Perfect setup for me - getting in before the big break but with minimal downside risk.


Here are some of CMP's recent announcement headlines - all from this year:

NEW US$5M DEAL WITH CHINA

US$4.1M CONTRACTS PIVOT CMP INTO NEW EHEALTH PLATFORM

SECOND MAJOR US CONTRACT WIN GIVES CMP ACCESS TO 2,800 ADDITIONAL HOSPITALS

CMP SECURES LUCRATIVE BRAZIL DEAL

MAJOR CONTRACT WIN IN THE US GIVES CMP ACCESS TO 1,400 HOSPITALS

CMP WINS KEY DEAL IN EUROPE

CMP WINS $2 CHINA CONTRACT


The company is still capped at just $20 million.

Its not just the Chinese market they are expanding in - also North America, South America and Europe. CMP devices will soon be in another 4,200 hospitals in the USA alone.

And revenue from the above announcements played almost no part in the numbers released for the year ending 30th June 2014.