At the Last Futurist, we try to pick startups we see as growing and profitable business models for future investments. We’ve been watching HealthLynked Corp for a while now and it’s time we give it a shout out. This is not financial advice, just speculation on a highly liquid market.
We know that part of the normal is an overhaul of digital health and telemedicine. The American healthcare system is very dysfunctional, lacking EMRs that make sense and are compatible with other systems.
HealthLynked Corp. operates a cloud-based patient information network and record archiving system. For a stock under $1 we feel this company has huge potential. The ticker is $HLYK. This is a growth stock for 2021 and we’re going to try to understand it better in this article.
The stock was just $0.11 at the end of 2020, so what changed? Really good growth and earning signals, for a start. We like the business model. Year-to-date 2020 results included a 59% increase in revenue and a 14% decrease in operating loss compared to the same period of 2019. Third quarter 2020 revenue also increased 74% compared to third quarter 2019.
The company is innovative. A little over two weeks ago, it launched an automated phone routing system, CareLynk, allowing patients to connect to any doctor in the U.S. via AI-enabled speech recognition system. You can see the PR on that here. So here we have a growing company improving its product and expanding during the pandemic in the sector of healthcare which is expected to be high-growth in the 2020s in the long term.
Check out their website here. The company has a B2B and B2C way of organizing their customers.
- The company operates HealthLynked Network, which enables patients and doctors to keep track of medical information via Internet in a cloud based system.
- It enables patients to enter a detailed online personal medical history, including past surgical history, medications, allergies, and family medical history; and provides online scheduling function for patients to book appointments with providers.
- CareLynk was built with a proprietary library of relevant medical terms and its ability to recognize alternative medical queries will improve over time with the system’s machine learning capabilities. Calls are connected to a selected doctor via Amazon Connect.
- The company also offers obstetrical and gynecological medical services to patients. HealthLynked Corp. was incorporated in 2014 and is based in Naples, Florida.
It’s very rare to find growing startups of this quality in the micro-cap sector, but we all have to start somewhere. They have over 35 employees already. They have growing revenue, the most important thing for a startup. The stock has tripled in 2021 already. The high is $0.43, and it’s now $0.36, i.e. the chart looks good.
We think the stock will be $1.20 by the end of 2021. This stock is a long hold, a real play for diamond hands. They may really have closer to 20 employees, according to their LinkedIn. The Cloud-health sector is really a hot place to be in the 2021 to 2025 period. You may remember we also like the company in Canada called CloudMD Software.
We think over time HealthLyked will meaningfully augment the patient experience and be acquired by someone like Amazon, Google or Apple or even Teladoc and one of its peers. The best startups solve real world problems. One is patient discovery. Patients are often frustrated when they are looking to book an appointment or find a new physician.
The phone book as the source to find a doctor has essentially gone away and patients are left to remember multiple numbers and search the internet which can be frustrating and out of date because doctors often move locations every 3 to 5 years. CareLynk will allow patients to connect to any doctor through one number.
What I like about the system is the patient can be their own advocate entering the data. The future of healthcare is patient-centric and cloud-based. About 30% of shares are currently held by insiders, this is a very early-stage startup. Moreover the subscription model here is fascinating as there are incentives for patients and health centers.
The stocktwits tribe is nearly non-existent at 150 followers. This means the stock is under the radar of most. At the Last Futurist, we’ve likely been watching this stock since December 2020. For significant profits, getting in early is imperative.
In 2021 there’s so much liquidity in the micro-cap sector even companies with very poor business models such as $MVIS and $GEVO have been very profitable. While they are unlikely to sustain those gains, what if you invested in a business model that could actually scale?
The connection of the company to Amazon also gives it certain benefits. The branding is above average. The company’s name and what it does really is intuitive. Why invest in late February? In March apparently they are launching their own telemedicine, hosting the Future of Healthcare summit and releasing earnings. You could swing trade this a couple of times before going long and you wouldn’t be hurt by that, not at all.
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As always you can see the price live here.