Reliq Health Is Quickly Becoming A Cash Cow

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

During the course of the last year, we highlighted Reliq Health Technologies Inc. (RHT.V) (RQHTF) as an undervalued and underappreciated investment opportunity.

While we saw significant upside potential due to the company’s numerous pilot programs, the market did not and the shares traded sideways to down for most of the year.

The last month has been a completely different story and shares of Reliq have rallied more than 30%.

Although this rally has been significant, we continue to see substantial upside potential to current levels.

First Inning of a Multi-Decade Growth Cycle

In early August, Reliq reported a major milestone after its remote patient monitoring and telemedicine solution with Paz Home Health LLC in Texas went live.

A few weeks later, the healthcare technology company announced another milestone after going live with its remote patient monitoring, care coordination and telemedicine platform with Rio Grande Valley Health Alliance.

August was a banner month for Reliq and these developments have the firm positioned for incremental growth. The company has contracts in place with a 12,000-patient home care agency and a 36,000 patient Accountable Care Organization (ACO) in Texas that are expected to generate between $17 and $23 million in recurring annual revenue in 2018.

Rio Grande Valley Health Alliance: A Major Catalyst

The agreement with Rio Grande Valley Health Alliance is a very attractive opportunity and should become a significant revenue stream for Reliq.

Rio Grande Valley Health Alliance is an ACO comprised of 17 primary care physicians working with Medicare to provide better-coordinated care to patients. The ACO is made up of 15 independent practices focusing on primary care and has more than 30,000 registered patients.

Reliq has already been enrolling the first patients and expects to add 500+ patients to the platform each month. Once the platform is at full deployment. Reliq will be generating over $20 million in recurring annual revenue.

Expanding its Reach All Over the World

Over the last year, Reliq expanded its reach and geographic diversity and has secured pilot programs with hospitals, organizations and municipalities in the U.S., the U.K., and Canada.

Some of Reliq’s agreements and active pilot programs include the following:

• The city of San Antonio signed an agreement with Reliq ($1.22 million contract) to develop a white-labelled version of its platform to proactively support the health and wellness of the city’s 1.4 million residents.
• Reliq was accepted into the United Kingdom's National Health Service (NHS) Test Beds program and started to pilot its virtual care technology with a London-area hospital.
• Florida-based Sacred Heart Health System, a five-hospital regional healthcare network that admits 30,000+ patients a year, entered a pilot program with Reliq
• Hamilton Health Sciences and McMaster University entered an agreement with Reliq. Hamilton Health Sciences is a five-hospital network that treats over 50,000 patients and performs over 28,000 surgeries each year.
• The Feldman Institute in Baton Rouge, Louisiana entered a pilot program with Reliq and the institute is an interventional pain management clinic that performs thousands of pain management surgeries annually.

An Undervalued Opportunity

We have been favorable on Reliq Health and believe the recent developments are a testament to the company’s product. We continue to see upside to current levels and believe that Reliq is remarkably underappreciated.

The company’s market capitalization is well below the potential monthly revenue associated with its pilot programs and we are favorable on Reliq’s long-term outlook. Based on these facts, we believe that Wall Street has significantly undervalued the company’s potential and expect this to change as the company continues to execute and deliver positive news to its shareholders.