Reliq Health Technologies Inc V.RHT.H

RE:RE:short term vs. long term

[Bobwins]

I just bought this morning.  I think the selling is related to warrant holders and also maybe some worry about whether the financials will come thru.  The fact that the PR says installations are delayed is not good news.  Also the fact that Reliq had to buy the equipment for their customers is scary.  That means that the company that is fueling the growth in sales and A/R isn't very strong financially.  Reliq placed a large order for equipment that their customer apparently couldn't get.  Does that sound like the equipment wasn't available OR that they didn't have the financial strength to qualify for any more credit?

Eventually Reliq gets paid from Medicare BUT if the company billing Medicare AND eventually paying Reliq gets stretched out and goes under, Reliq is going to have big trouble collecting their A/R.  And their big growth slows down fast.  So hopefully they don't put all their eggs in this one customer's basket.  Time to get another customer up and building sales to diversify risk.  

Don't know if this is the bottom.  There are lots of warrant holders with BIG paper profits.  Lots of retail investors with big profits over the past year.   But I couldn't resist the profit potential and the huge market this company addresses.  Technology may finally be able to help keep people healthy in their own homes.  My Mom went thru a series of facilities before passing away a few years ago.  It's not pretty and the standard of care is NOT what family members want but very few families can actually take care of seniors full time.  If Reliq can provide a safety net to help reduce hospital visits AND keep Mom or Dad at home, it could be a big win for families and seniors AND Medicare.