Reliq Health Technologies Inc. (TSXV: RHT) is a Canada-based technology company specialized in developing Software-as-a-Service(Saas) solutions for remote patient monitoring, telemedicine, and care collaboration.

Key highlights

• Update on Virtual Care Platform: On February 16, 2022, the company announced its ambitious plan for the advent of The new physician fee schedule,  which came into effect on January 1, 2022. It signed an implementation plan arrangement with its current customers and expects to acquire more than 10,000 new Remote Therapeutic Monitoring patients to its iUGO Care platform, with average revenue of USD 40 per patient per month.

• Service expansion:On February 9, 2022, the company announced it has expanded orthopedic practices by signing three fresh contracts in Texas and California. With the help of these contracts, the company anticipates adding close to 2,000 new patients to Reliq’s iUGO Care platform in the current year.

• Q1FY22 Results: On November 30, 2021, Company announced its Q1FY22 results, stating a staggering rise in its revenues by 192% to CAD 1.60 million as compared to CAD 0.54 million in the previous sequential quarter. Further, the Gross profits rose exponentially to CAD 1.15 million for Q1FY22 vs CAD 0.32 million in Q4FY21.

• Technical aspect: The stock showed a gradual rise from the levels of CAD 0.23 in December 2020 to the immediate high of CAD 0.94 in February 2021. After dipping from there, the prices again rallied to the recent highs of CAD 1.33 in November 2021. The stock is currently in the range of CAD 1.30 to CAD 0.85 levels. Breaking either side of the range could probably confirm the next leg of the trend in any of the directions.
  

Stock recommendation 

The stock delivered a negative return of 3.99% in past one month and an astonishing positive return of 74.54% in the past nine months. The company reported a significant increase in its revenues and gross profit margins and signed new contracts, which further boost the prospects of the the company in coming quarters. On the technical front, as long as the stock respects the CAD 0.85 levels, the support seems to be intact, keeping the upper range of the zone viable.

Therefore, based on the above rationale and technical analysis, we recommend a “Watch” rating at the closing market price of CAD 0.96 on February 25, 2022. Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

One-Year Technical Price Chart (as on February 25, 2022). Source: REFINITIV, Analysis by Kalkine Group

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