cloud based healthcare, page-6

time for some R & R, its been a huge run from the June low of 2.5c

Now we are on a more realistic PE and market cap, not overpriced by any means since the industry sector average PE is 19 and GLH is at 12.

Federal help for e health is now dead in the water, apart from the lib election promise of $5million to mental ehealth systems. GLH already supply Headspace centres , and Tony Abbott has popped up at Headspace centres over the years since he has a real interest helping the youth mental health sector, so GLH appears to be in the market for one sector The PM has a keen personal interest in.

The secure messaging is now a cloud based "ticket clipper", remains to be seen how much market share GLH can grab. With the new protocols rival messaging systems can communicate with each other. GLH may look at acquiring smaller rival systems now its share price is on a strong footing. I wouldn't be surprised to see M & A activity in the next 12 months .

The key to serious share price growth lies in the this comment in the 2013 Annual Report:


"Revenue from the non-acute sector increased by 24% to $1,720,747 producing a 91.5% (+$796,841) increase
in segment EBITDA to $1,212,773 (2012: $415,932), as a result of product maturity and economies of scale."

This is of course as good as it gets, the margins on the non acute sector are huge and any top line sales growth translates to significant NPAT improvement. Cost of acquiring customers can then easily be funded. Once a customer is one over then they become an annuity stream.

which is why why I think the market will apply a PE of over 20 to this stock if it sees consistent sales growth.

the top 7 shareholders own 80% of the scrip with the CEO controlling 52%. That's a very tight ship. A share of price of $1.20 to $1.50 is possible within 6 months if sales and NPAT continue to grow and the bull market in small caps remains in place. Micro cap tech stocks are redhot right now, and valuations in this sector can stretch credibility yet keep on going...