If you’re looking for some of the best stock performances this past month, it is hard to overlook Oneview Healthcare PLC [ASX:ONE].
This tiny software company, with a focus on the healthcare market, has taken the ASX by storm recently. Rising from 7 cents per share to 37 cents per share in the span of roughly three weeks.
A staggering 428% gain for early investors, with a solid 27.59% pop today alone.
But, could this recent surge just be the beginning of a much bigger movement higher?
Oneview launches its ‘Care Experience’ Platform
The reason for today’s spike in share price is due to the debut of Oneview’s new platform. A cloud-based healthcare solution known as CXP Cloud Enterprise.
Which, according to Oneview, is the first and only platform of its kind.
So, what does it do?
Well, here is how Oneview describes it:
‘Oneview’s CXP Cloud Enterprise provides full functionality on a secure, reliable cloud deployment with patient education, meal ordering, patient service requests, apps and digital services, virtual rounding, visitation, and translation services. This comprehensive platform can drive more meaningful engagement, improved satisfaction and provides better control and quality of care for both patients and care providers.’
In other words, it should provide both patients and physicians with much better all-around treatment. As well the ability to monitor and manage all these processes in a reliable digital system.
Dr Simon Kos, a Healthcare Industry Executive at Microsoft Australia, explained precisely why this is such a ‘game changer’:
‘The cloud enablement of Oneview’s patient experience platform is a game changer.
‘It means that health organisation can deploy more quickly, with greater predictability and less specialised resources, all on the trusted Azure cloud. This a win for patients, clinicians and healthcare organisations that put patient experience and outcomes first.’
For these reasons, investors certainly have good reason to be optimistic. With the potential for this launch to turn Oneview into a major disruptor of the healthcare industry. One that should be a benefit for all parties involved.
As for what it will mean in terms of an actual return, well, the sky may be the limit…
We won’t truly know just how disruptive the platform will be until customers get their hands on it. Which will ultimately prove whether it can live up to the hype or not.
What should investors be looking for?
Needless to say, a lot of Oneview’s recent success and outlook is speculative in nature.
Investors are clearly already pricing in some success of this cloud platform. It is simply a matter of how big this success will be, that will determine where the share price heads from here.
With that in mind, considering Oneview only recently publicised its annual report (for the year to 31 December), revenue is something worth keeping an eye on.
Across the calendar year of 2020, Oneview reported €7.1 million in revenues. Which was a very tiny improvement over the €7.09 million they made in 2019.
Management will need to see a far greater improvement in their topline result if they hope to sustain this recent momentum. Something that may certainly be possible with the release of this new platform — but is by no means guaranteed.
So, for any current or future investors, that is what I’d be looking at carefully.
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For Money Morning