Reliq Health Technologies Inc V.RHT.H

Question for the longs

[teeswater]

How long will you hold?

What SP do you envision in Jan 2022?

What would make you sell out completely and never look back?

Some say they are holding for years, so: if that is your play, does the current sorely low SP bother you at all? and...if you have faith in management, why?

Just curious: I am long, huge # of shares, 6 figures, so I will hold until 2023, I envision an SP of 2.50 Jan 2022, The current SP does piss me off, and my faith in management is very high. I feel that Lisa is completely committed and passionate and that she will execute...

I just wish she would get the fire rocking...Lisa...goooooo....hate sitting on so many shares with so many other opportunities out there, but something compels me to stay invested,

others thoughts? anyone?

[lscfa]

A stock that flatlines for 2 years and then doubles still yields 41.4% compound average annual growth.   

[Lifeboat1]

Teeswater, I am holding and adding as long as the price is below $1.00share and the Company is making progress and the market that they are going after remains relatively untapped and growing.  If they hit $500k/month in revenue without profitability the stock should be $0.67 to $1.33 at 20-40x revenue and 180 million shares.  Pricing will be forward looking from that point on so

[Robot007]

Good analysis! I think on the same lines, I think my exit is around 6$ though. Good luck bathers....

[Lifeboat1]

Thanks.  I will reevaluate accumulating shares once over $1.00.  I will likely sell 25% if it starts to run over $2.00 and would probably sell another 25% at $5.00.  I would keep the rest in hopes of $10-$30 at some point with an acquisition or huge upside with big data once they are in the hundreds of thousands of patients.

[watch22]

I'm holding... and would be a seller north of a dollar. I have zero idea where you get your ideas on value though. I don't have much in the way of comparables: - QIPT - home health monitoring (trades TSXv and Nasdaq).  Market cap of $250m - last quarter revenue of $25m... so 2.5x revenue - DOC - cloudMD.  Market cap of $450m - run rate of revenue (post last acquisition) of $140

[theinvestor22]

I think you have to be careful when comparing companies.  The 2 you mentioned have lower gross margins (and possibly higher expenses) and will need a lot more revenue just to get to break even.  Best to compare RHT against other SaaS companies.  That's where you'll see the big P/Rev multiples, and justifiably so.

[Lifeboat1]

Listed below is one of the better SAAS valuation analysis I have found.  It is a bit dated but even on this list most companies are not profitable.  The key driver for valuation is 30% or more growth and cash flow positive.  Healthcare currently has an additional premium in the market post Covid, especially for remote care.  Organic growth always has a premium over buying

[watch22]

not sure if its justifyable... If someone is willng to pay 3x revenue for a business like DOC with a 40% margin... logically they will pay 56x revenue for a business with a 75% margin. at least that's what logic suggests. I still believe we need line of sight to $100m of revenue to get this stock moving north of $1.

[Lifeboat1]

Also look at Livongo multiples before they were acquired.

[Lifeboat1]

Livongo had a $14 billion market cap on $170 million in annual revenue and a annual loss of $52 million.  That's a valuation of 82x revenue.

[theinvestor22]

I'm not suggesting that companies should trade at 56x rev, but I do think a business with a high gross margin combined with low corporate expenses is worth a lot more than a conventional business.  Here's an example I just cooked up off the top of my head.  Please don't worry about the exactitude of the numbers, but the overall gist of the argument. Company A: a more

[watch22]

sorry... that should have said 5x to 6x revenue.  I think we agree. so based on DOC and RHT comparison (with DOC having a lot of SAAS revenue but overall a lower margin)... you get to 5-6x revenue.  (assuming the market has the same view of growth / success).  To date, mr market does not...  fingers crossed we see some true onboarding and revenue growth soon.

[Tdcpigc]

Small cap rarely such logical, jump by *25 in 7 months (end July 17 - end Feb 18), at $2.6 in '18 ratio were stratospheric. Only and sole interest of ventures cap, huge gain in limited time, take money and run.

[FanofRHT]

LB- Thank you for the most interesting, refreshing and well thought out post  I have seen on here (and ca) for a long time. Like you, teeswater and several others, I too am a long term Reliq investor and over the years have accumulated many more shares than I normally would with such a stock. But, while I am very frustrated with Lisa et al I continue to believe in Reliq's technowedgy and

[theinvestor22]

I don't normally answer these types of questions, but it's a slow afternoon... I'll hold as long as the reward is greater than the risk (probably for years), but I'll reassess after each material event.  If the price were to skyrocket, that would also influence my calc. Sell and never look back?  See above. My price estimate at any future point in time?  I have no