ORHUB INC (OTCMKTS:ORHB) has started the new year on a high after feeling the full effects of selling pressure in 2017. In less than one month the stock has risen by more than 150% and in the process touched a one year high of $1.70.
A close look at the chart below shows that more than 1 million shares of the company’s stock have exchanged hands, over the past one month, as investors take note of the long-term prospects.
The big question now is whether the stock has what it takes to continue rising after the breathtaking rally. The stock is currently trading in a $0.94 – $1.70 trading range and a healthy uptrend. However, it has pulled back from its one year high and is currently trading at the $1.15 handle.
We believe the pullback presents a unique buying opportunity given the strength of the upward momentum. On the downside, the stock faces immediate support at the $0.90 handle, below which it could drop to the $0.70 mark another fundamental support level
Before we look at the catalysts likely to push the stock higher, let us first understand ORHub core business.
ORHub Business Overview
ORHub is a surgical software developer focused on real-time paves the way for data. The company develops products suited for the healthcare industry, hospitals, patients and medical device vendors. It also boasts of a cloud-based software solution that captures information before and after surgery.
The company’s software solutions allow medical institutions to utilize web-enabled devices to create an automatic graphic depiction of what happens during surgery. The software will enable surgeons to make real-time data-driven decisions based on the information recorded by the software.
The solution also helps healthcare providers understand standing costs as well as areas where cost reductions can be implemented thus increasing accountability.
ORHub is the subject of renewed investor interest on Wall Street on announcing plans to transition from development Stage Company to a revenue-generating service provider. The company is fresh from confirming gross proceeds of $3.9 million from the exercise of warrants that expired on December 31, 2017.
According to the Chief Executive Officer, Colt Melby, ORHub is standing on the threshold of a new age on medical systems technology. The new capital raise should allow the company to pursue the market with the full force given the opportunities for growth up for grabs in the space.
“ORHub is privileged to have strong support from our investor community as demonstrated by the successful warrant exercise. This additional capital will help our expansion efforts as we scale the ORHub software platform nationwide,” Melby in a statement.
The digital software company signed a five-year revenue agreement with a nationally recognized institution last year. While the agreement underscores the value and power the company brings to the market, it also paves way for the company to expand to other key hospitals across the U.S. The agreement is also set to improve the company’s operating margins and hospital economics.
In addition, the company has installed its Surgical Resource Management platform, at leading hospitals in Southern California. The installation brings to five the total number of hospitals currently using the ORHub platform. Deals with five hospitals means the company is well ahead on its goal of gathering data for 100 million surgeries per year.
The company’s software solution is being used to provide vendors, physicians, and nurses the resources needed for collaborating in a single digital workspace. It is also being used for a fee to offer predictive analysis and drive additional revenue insights to decision makers.
“We are very pleased with the progress of our aggressive expansion strategy, and look forward to continuing this momentum through the remainder of the year and into 2018. More surgical institutions are recognizing the value and breadth of our proprietary platform, and we are excited to see this market acceptance translate to new customers and corporate growth,” Melby in a statement.
Installation of the surgical software application in hospitals is a milestone achievement for ORHub, given that more than 100 million surgical procedures are performed in the U.S every year. The more hospitals the company solution’s finds themselves in, the more, the firm is guaranteed of a reliable stream of revenue, which should help strengthen its cash flow.
ORHub has already agreed with a national sales and business development partner with specialized capabilities in healthcare solutions delivery. The partner is tasked with the responsibility of driving sales of the company’s Surgical Resource Management platform across the U.S
The partnership should also accelerate the rate at which surgical software developer can execute its scaling strategy needed to take advantage of national market opportunities. In addition, the company should be able to focus more on software development as its partner takes care of sales.
ORHub remains well positioned to generate significant revenue as its software applications find their way into various hospitals across the U.S. The ongoing transition into a revenue-generating company presents a unique opportunity for investors looking to take advantage of a small cap with massive potential in the surgical procedure business.
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Disclosure: We have no position in ORHB and have not been compensated for this article.