wealth_bakery

Record financials warrant a re-rating

Long
NEO:MEDV   MEDIVOLVE INC
Q3 2021 results warrant a re-rating of this $30M mkt cap biotech play:
- Revenue was $25.3 million in the third quarter of 2021, up 575%, compared to $3.7 million over the prior three-month period ending June 30, 2021.
- Gross profit was $10.5 million in the third quarter of 2021, up 1,288%, compared to $753,535 over the prior three-month period ending June 30, 2021.
- Net income was $6.8 million in the third quarter of 2021, compared to a net loss of $8.7 million over the prior three-month period ending June 30, 2021.
Comment: Bollinger Squeeze breakout on the weekly chart points to a bigger coming move. COVID-19 cases are spiking across Europe which always tends to trickle down to the US. Next quarter is likely to be even better for MEDV.
Comment: Key points from November 30, 2021 Webinar:
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- New CEO joined the company on May 1, 2021; found it to be in financial distress with $20M+ in debt, $100K cash remaining, losing $150K - $200K per week.

- Saw opportunity in COVID-19 testing that was generating strong revenue. Cut money losing projects and expenditures and tightened up overall spending.

- Saw an overnight 78% increase in foot traffic at the testing sites.

- Transitioned from cash based model to insurance based by implementing a new software suite. The changes allow the company to connect to 700,000+ different insurance companies and replaced 20 - 30 in-house employees. 99%+ of the US population qualify for free COVID-19 tests under this new model.

- Rolled out second software suite to streamline patient registration online.

- By Q3 2021, saw 3,000 patients per day (18,000 per week). $180 USD per patient = $3.2M USD per week gross revenue.

- Currently seeing 6,000 patients per day and operating at maximum capacity

- Looking to add two more COVID-19 tests to the existing 3-test package and to bring the per patient revenue up from $180 to $410 USD by Q1 2022.

- Q4 2021 revenue is expected to be as strong or stronger than Q3

- Beginning transition from pure COVID-19 testing play into AI/Telehealth with 5 - 10 new pilot sites opening in the next few months.

- New platform will target testing for COVID-19, flu, diabetes, cancer, stroke risk and more. Goal is to use the AI and Big Data to disrupt the US healthcare system by streamlining registration, patient sample collection, on-site and at-home visits and doctor referrals.

- Conservative estimate for 2022 gross yearly revenue: $200M - $300M USD.

- Main competition: TeleDOC ($16.2B USD mkt cap).

- NASDAQ uplisting in 2022. No immediate reverse split. Will concentrate on growing shareholder value.

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