Ann: Change of Director's Interest Notice-ONE.AX, page-2

i like the concept of this company and they clearly have a great management team, particularly with the new directors from the US who have top pedigree.

i dont undersrand the rise in sp and market cap to 350million though, for a company which is running at a loss. even if they can win more contracts, the rate of new hospital uptake is slow. having a few flagship hosputals will help cgive credibility, but most private hospitals will have trouble justifying the cost until more data is out to prove its cost effective. public hospitals in australia wont sign up with the exception of cashed up kids hospitals.

this company will grow, but the sp premium is not justified in my analysis based on a medium term 2-3 yr outlook.

i expect they will become profitable in around 1 year, but earnings growth wont be exponential until they can hit a threshold point or sone big private hospital contracts eg ramsay/ healthscope or big usa hmo's that are willing to sign contracts across many thousands of beds.

i like the new focus on recruiting more sales staff to start really transition into a marketing phase and pushing the product sales hard.

if the sp drops 20-30% or i see genuine uptick in growth then ill consider buying in, otherwise it stays on the watchlist for the moment until it can prove widespread uptake momentum, sustained profitability and earnings growth. right now there is more downside than upside risk at an entry point of 6.80.

despite my hesitation, i think this will pay off for those who bought in at the ipo and who are patient longer term holders.