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People need to realise something that there will be a turn around for this overeaction. This is an opportunity to accumulate rather sell at loss. The company insiders are doing it and there is no better proof than that. here is an outsider oppinion and I believe this is genuine.


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Did ResApp Health Limited (ASX:RAP) Insiders Take Advantage Of Recent Price Volatility?

Raj Burman August 17, 2017
ResApp Health Limited, a digital health company, develops smartphone applications for the diagnosis and management of respiratory disease. RAP’s insiders have invested more than 8 million shares in the large-cap stocks within the past three months. Generally, insiders buying more shares in their own firm sends a bullish signal. A research published in The MIT Press (1998) concluded that stocks following insider buying outperformed the market by 4.5%. However, it may not be sufficient to base your investment decision merely on these signals. I’ve assessed two potential reasons behind the insiders’ latest motivation to buy more shares.
See our latest analysis for RAP
Who Are Ramping Up Their Shares?


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ASX:RAP Insider_trading Aug 17th 17

There were more ResApp Health insiders that have bought shares than those that have sold. In total, individual insiders own over 51 million shares in the business, which makes up around 7.73% of total shares outstanding. Insiders that have recently ramped up their holdings are:

	Name	Management	Board	Total Annual Compensation
1	Christopher Ntoumenopoulos			$48,583

The entity that bought on the open market in the last three months was FIL Limited. Although this is an institutional investor, rather than a company executive or board member, the insights gained from direct access to management as a large investor would make it more well-informed than the average retail investor. In this specific instance, I would classify this investor as a company insider.
Is This Consistent With Future Growth?


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ASX:RAP Future Profit Aug 17th 17

On the surface, analysts’ revenue growth projection of 140422.23% over the next three years provides a spectacular outlook for the business which is consistent with the signal company insiders are sending with their net buying activity. Digging deeper into the line items,analysts anticipate decline in top-line growth next year, which could imply some headwinds going forward. This will likely flow through to its earnings next year with a growth of -9.35%, indicating cost-cutting may not be significant enough to pull it through into a positive growth region yet. Although, insiders seem to know something the market does not and have been ramping up their holdings in times of uncertainty. This indicates they may see a turnaround or deem the stock to be over-penalized by negative market sentiment.
Did Insiders Buy On Share Price Volatility?

An alternative reason for recent trades could be insiders taking advantage of the share price volatility. Volatility provides an opportunity to trade on market inefficiencies when the stock is under-priced compared to the stock’s intrinsic value. RAP’s shares ranged between $0.35 and $0.07 over the past three months. This indicates a substantial share price volatility with a change of 430.3%. Insiders could perceive this meaningful movement as an opportunity to accumulate their shareholdings. Or else, they may simply buy for their own portfolio diversification purposes or need an asset to park their excess cash.
Conclusion

The reason to track insiders’ transaction makes sense. Company executives and directors have in-depth knowledge of their own company’s operations – from their production pipeline to customer demands. Their conviction can be measured by the timing and magnitude of their transactions. RAP’s insider meaningful buying activity tells us the shares are currently in favour, though negative growth in expected earnings contests this assumption, while a very volatile share price could be the motivation to trade.