Update 11:13 AM EST Acquisition news out today.
NOTE* Short sellers are bashing this stock everywhere on social media today (Stock twits especially). Easy Squeezeee with only 7.9M in the float!
Healthcare Triangle (HCTI) Acquires DevCool, an Electronic Health Record (EHR) Focused Healthcare IT and Managed Services Company
Good day everyone,
Healthcare Triangle, Inc. (NASDAQ: HCTI) supports healthcare organizations with digital transformation encompassing the cloud, security and compliance, data lifecycle management, healthcare interoperability, and clinical and business performance optimization.
Current price $2.57/share (+ 16.8% at 10:04 a.m. EST 12-13-21)
After closing the past Friday session at $2.20/share, HCTI shares were up sharply this morning, on the breaking news (below) of an acquisition. Reaching an early high of $2.71/share, the trading volume of 950K shares has already exceeded the daily average.
In breaking news this morning, HCTI announced that it has acquired DevCool, Inc, ranked by Inc. 5000 as among the fastest growing private companies in USA in 2021.
DevCool provides Electronic Health Record (EHR) Implementation and Managed Services to six of the top ten hospitals in the USA and specializes in providing services to cancer research hospitals and university medical centers. While the acquisition is accretive and could add nicely to the HCTI top line, I believe the synergies created will be equally as beneficial.
Suresh Venkatachari, Chairman and CEO of HCTI stated, “With the acquisition of DevCool, we will add large health systems and Integrated Delivery Networks (IDN) to HCTI’s client portfolio, and we expect it to be accretive to EBITDA.” Mr. Venkatachari said further “This will further allow clients to host their EHR on public clouds (Amazon Web Services, Google Cloud, and Microsoft Azure) with the HCTI’s CloudEz Platform and expertise,”
Health Triangle will now have the opportunity to upsell its SaaS Platforms like CloudEz, DataEz, and Readabl.AI to the existing client base of DevCool. The combination of the DevCool client base of top hospitals and the HCTI expertise and advanced SaaS systems appears to be a winning situation for all the parties involved.
I had several reasons to like HCTI shares before today that have now been expanded with this accretive acquisition.
original report below
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Healthcare Triangle, Inc. (NASDAQ: HCTI) supports healthcare organizations with digital transformation encompassing the cloud, security and compliance, data lifecycle management, healthcare interoperability, and clinical and business performance optimization.
Current price $2.20/share (at market close 12-10-21)
HCTI is a newly public company whose common stock began trading on The Nasdaq Capital Market on October 13, 2021. The company was incorporated in October of 2019 and in early 2020 acquired SecureKloud Technologies Inc. (life sciences) and Cornerstone Advisors Group LLC (healthcare).
Statistical Highlights
Tiny float (7.96M shares)
Trading 49% off its October high ($4.35)
Price to Sales ratio is only 2.0X
High insider ownership (67.8%)
$35M revenues with 10.7% industry CAGR
As I started my due diligence on HCTI to prepare this report a couple of things stood out at the onset. The company is two years old, been a public company for two months, and is already generating $35M in annual revenues. Insiders are holding 67.8% of the outstanding shares indicating a high level of confidence in the company and their ability to deliver shareholder value.
The company IPO, concluded in mid-October, consisted of 3,262,500 shares of common stock at a public offering price of $4.00 per share, for aggregate gross proceeds of approximately $13.0 million. Even after the IPO the company’s public float is only 7.96M shares.
HCTI is bringing its expertise in Big Data, Analytics, DevOps, Security/Compliance, Identity Access Management (IAM), Machine Learning (ML), Artificial Intelligence (AI), Internet of Things (IoT) and Blockchain to its clients and focuses its product marketing to three healthcare sectors:
Pharmaceutical companies, which require improved efficiencies in the clinical trial process. HCTI modernizes their IT infrastructure to advance the clinical trial process to drug discovery and delivery.
Hospitals and health systems, which face interoperability challenges as mergers, acquisitions and partnerships drive increasing need for integrated healthcare infrastructures. HCTI’s health IT expertise optimizes providers’ enterprise digital structure needs connecting disparate systems and applying analytics capabilities.
Life sciences, payers and all healthcare organizations must protect and secure personal health information (PHI), a regulatory compliance mandate that HCTI addresses and manages for its customers
According to Grandview Research, the global healthcare IT market is expected to grow at a compound annual growth rate of 10.7% from 2021 till 2028 to reach USD 166.0 billion by 2028. The company offers a comprehensive presentation of its services and operations and as a part of your due diligence I recommend you look at it.
Stay tuned for our full report on HCTI coming soon
About HCTI:
Healthcare Triangle, Inc. (HCTI) reinforces healthcare progress through breakthrough technology and extensive industry know-how. HCTI supports healthcare providers and payors, hospitals, and Pharma/Life Sciences organizations in their effort to improve health outcomes by enabling the adoption of new technologies, data enlightenment, business agility and accelerate responding to immediate business needs and competitive threats. The highly regulated Health Care Life Science (HCLS) industry turns to HCTI for expertise in digital transformation on the cloud, security, and compliance, develops, data lifecycle management, healthcare interoperability, clinical and business performance optimization.
