RE:RE:Onboarding vs New ContractsFor me the question is what the acceleration rate is going to look like moving forward, I'm assuming we are going to get past the immediate issues and start onboarding the existing contracts. I'm also assuming that they are going to get a steady flow of new contracts, that seems to be already happening. I'm also assuming they could ramp up the rate of new contracts by expanding their own sales team or some other measure that is easily controllable internally.
The naive expectation was that new clients would onboard their own patients so as the business grew with new contracts the power to rapidly convert that to the bottom line also grew. For now that model looks (partially) broken, I think there is some hope some clients can still handle their own onboarding. The new model requires CareOne to do much of the heavy lifting, its still an unknown what they can achieve immediately and in the future.
I know we're still looking to meet the guidance for the rest of the year but the expectation was for rapid ramping up after that. There's still a question mark about that for now.
It looks like they handled the Foracare issue really well it could easily have taken a lot longer. They hit a snag, they concieved a solution, and at this point in time it appears to have worked (first time), not bad really. If we have to trust RHT to execute going forward then atleast we can be reassured that's something they've been successful at doing in the past.
Alias1238 wrote: First off, I'm a bull on this stock holding from 43.5c to over $2, then buying approx where it is today (thank you cheap shares under 1.50!)
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I would think that the hardware issue was very surprising to investors as the company and this board has said that their offering was "hardware agnostic" or similar.
In fact, when it came time to onboard, it did become hardware bottlenecked and took time for it to be worked out - and is in fact still being worked on now (over summer delivery of hardware and CareOne team training).
So going forward what investors really want to know is, sure, Reliq CAN work on multiple platforms, but are there going to be anymore issues like this one going forward?
Should Reliq actually team up with one or two hardware companies to mitigate these events going forward?
How often are these hardware events going to come up? Funding sensitivity should be a global issue as no one wants to really pay more than they need to.
What is fair market value for a darling stock that had its first hiccup so to speak.
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Saying that, I still am long the stock. They obviously have a great product and a lot of healthcare providers can see the benefits of their service, hence the contacts and pipeline. These kinks just take time to iron out and hopefully - Reliq can live and learn and continue their march onward.
For me the main questions are:
How will the pipeline of onboarding look in 6m, 1y, 3y, 5y from now?
How will the onboarding go in relation to hiccups of hardware? 1/10 healthcare providers? None?
Will profitability over the next year, 3 years, 5 years grind higher and higher so that we can see those 80% claims become true?
When will they move their stock to the US and cultivate a higher multiple because of it?
Wait and see.