Lesson from Uber/Amazon/Facebook

No trade today with huge bid-sell price gap, between 0.265 and 0.28 . Quite strange. Wondering if market is waiting for some news.
Recent pull-out with relative low volume could indicate only a few small players are trading. I am looking forward to see if any new institutional firms are taking position as top 20 shareholders.

Put aside technical analysis.

After reading about Uber's net loss, amounting to as much as its revenue, in pursuit of growth and market share, similar to Amazon, I think despite of CMP in different industry, its eHealth platform business model is similar to software platform firms, in terms of its need to become a market leader to become competitive.
The more hospital adopts CMP's eHealth platform, the more individual patients will follow. The network effect of maintaining the largest market share is paramount and the reason why in app/software/cloud platform industry , the largest players(winners) "take it all", such as Facebook and Google. Uber/Amazon spent aggressively just to become the largest player.

For CMP's eHealth, its prospect of being eHealth leader in sleep/neuro diagnostic service is quite feasible in China, Taiwan, South Korea, Hong Kong, after already " securing four key contracts with leading health services partners in South Korea, Shanghai, Hong Kong and Taiwan." July, 2014. Large population with growing dispensable income are killer-combo to make a product work.

I really hope the management really put effort into spin-off of DWL and brain research, to fund the capital required for eHealth.

Using valuation method for a medical equipment firm, CMP is valued fairly at P/E of 25, based on last year report.
Using valuation method for software platform, CMP is significantly under priced. A lot of software platform firms are trading at P/E 40+ or even operating at loss, in effort to become the largest player.

The beauty about CMP lies in the company's dual nature; having technology-leading core products to ensure stable income, as well as developing software-platforms by integrating its core products with cloud service to make its product more accessible and ready for viral expansion.

I think I want CMP to spend a lot in eHealth, in pursuit to become the largest players, instead of seeing nice, fat net profit over the next few years. For once becoming the largest player, it will serve a long way for the firm.