Crazy !As we wait for Gary's HALT ... Lets re read some of ADK 14 CENT Canadian potential ...
Qualitative Points that Support DIAGNOS' Business While DIAGNOS has a disruptive healthcare technology that looks poised to become a robust business, valuing the Company at such an early stage of adoption for its technology and business model is challenging, especially with the Company only this fiscal Q3 (ending December-2016) demonstrating a turn to profitability. An analysis of qualitative factors provides further support that the shares are due for significant upward revaluation:
1. FDA approval and growing sales to Pharmaceutical imply the technology is effective.
The fact that the FDA has approved the product, and Novartis + Bayer are paying to use it (and are upping their capital investments), confirms that it works.
2. Smart money investors already own a large block of the shares.
Management and friendly shareholders (including Dundee: ~18%, Renauld Family: ~8%, Investment partners NJ: ~8%) own more than 40% of the outstanding shares.
3. No competitors have contracts with pharmaceutical companies and governments.
While some other companies are developing similar software systems, DIAGNOS is the first-to-market and the only one to have a contract with a major pharmaceutical companies and government. The presence of competitors can actually help the adoption of the technology, as other firms will share the cost of developing the market. Since buyers would compare systems anyways, competitors could prove to be advantageous for DIAGNOS.
Note: Competitors have not managed to do what DIAGNOS can do. For example in the US only one other competitor has FDA approval on part of their platform, but they don't have any algorithms to automatically detect the lesions on the retinas (that artificial intelligence is the important piece).
4. First solution for government cost control over diabetes.
By providing an economic model that demonstrates clearly the saving of wellness program or prevention programs, to insure patients don’t go blind and carry the expensive treatment that follows. DIAGNOS has put together the first economic model to help governments curve the cost burden of diabetes. |
In contrast to some other names in the healthcare sector,
DIAGNOS' management has been more interested in running the business than promoting the stock. With the Company's turn to profitability closing out 2016 and a ramp-up of patient tests on tap, more attention is headed the Company's way, and
we expect management will dedicate more resources on responsibly relaying its story to potential investors.
As the company continues to penetrate the >$10Billion dollar market and revenue explodes to the upside, the company will undoubtedly attract more attention from the
Pharma companies that sell into that market. ADK.V could be a great tuck-in acquisition for large Pharma companies already selling into the market. Earlier this year, Welch Allyn, an American medical device maker, bought a competitor to DIAGNOS for an undisclosed sum. The acquired company, called Hubble Telemedical, was developing a similar software, but Hubble was a few years behind DIAGNOS (the clear advantage ADK.V has over competition is its proprietary artificial intelligence algorithms).