Tiny Float Rennova Health Inc (OTCMKTS:RNVA) Flashing Bullish Signals

Tiny Float Rennova Health Inc (OTCMKTS:RNVA) Flashing Bullish Signals

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Rennova Health Inc (OTCMKTS:RNVA) and has been battling for newfound respect, with shares bouncing around between the $0.01-0.02 levels in recent action. Last week, RNVA popped above its 50-day simple moving average on a sharp increase in volume. Now, this is an extremely low float stock, so the needle isn’t hard to move. Hence, momentum and increasing volume can hold extra importance.

As far as new catalysts, the company recently announced the acquisition of its second Rural hospital, and its CEO, Seamus Lagan, recently appeared on an online radio show to discuss the path forward the company. “Our current target is to take ownership on May 1st,” said Lagan. “And at this time we do not see any reason that this date cannot be maintained. This acquisition complements our hospital in Oneida, 38 miles away, and we look forward to the synergies helping to deliver growth in revenue and profits in both hospitals for many years.”

Rennova Health Inc (OTCMKTS: RNVA) promulgates itself as a vertically integrated Public Company that provides industry-leading Diagnostics and supportive software solutions to healthcare providers. The company, together with its subsidiaries, provides a suite of healthcare related products and services to healthcare providers in the United States.

The company operates in three segments: Laboratory Services, Supportive Software Solutions, and Decision Support and Informatics Operations. It provides toxicology, clinical pharmacogenetics, and esoteric testing services.

The company also offers Advantage, a HIPAA compliant software; Clinlab, a Windows-based Web-enabled laboratory information management system; and Medical Mime, a suite of solutions, which include an optimized Electronic health records (EHR) for substance abuse and behavioral health providers, a dictation-based ambulatory EHR for physician practices, and advanced transcription services. In addition, it develops and markets interpretation and decision support solutions that enhance cancer diagnoses and treatment through actionable data analytics and reporting for oncologists and their patients. Rennova Health, Inc. was founded in 2005 and is headquartered in West Palm Beach, Florida.

According to company materials, “Rennova provides industry-leading diagnostics and supportive software solutions to healthcare providers, delivering an efficient, effective patient experience and superior clinical outcomes. Through an ever-expanding group of strategic brands that work in unison to empower customers, we are creating the next generation of healthcare.”

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As noted above, the company has been moving on an expansionary pathway. And with a float this tight, traders may find it beneficial to pay close attention as the stock tests recent range highs around the $0.02 per share level.

According to the release, “The company’s purchase of two geographically synergetic hospitals in rural Tennessee has opened the door for predictable revenue and growth moving forward. Rennova Health expects the implementation of this model will prove positive for the company and its shareholders and expects significant improvements in revenue and shareholders’ equity throughout 2018.”

Traders will note 74% added to share values of the company over the past week of action, a bounce that has taken root amid largely bearish action over the larger time frame. Furthermore, the name has seen a growing influx of trading interest, with the stock’s recent average trading volume running 310% over what the stock has registered over the longer term.

It pays to take note of this fact with the stock trading on a float that is extremely small at just 5.2 million shares. It’s something the veterans know to key on: ramping trading activity can overwhelm available supply in a stock with this type of small float, leading to an upward burst in prices.

Now commanding a market cap of $86,287, RNVA has virtually no cash on the books, which stands against about $9M in total current liabilities. RNVA is pulling in trailing 12-month revenues of $3.5M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 387.7%. This may be a very interesting story and we will look forward to updating it again soon. Sign-up for continuing coverage on shares of $RNVA stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $RNVA, either long or short, and we have not been compensated for this article.

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