Wearable Health Solutions Inc (OTCMKTS:WHSI) is an interesting small-cap stock in the booming senior care marketplace that has been underappreciated by the market but looks to be testing key technical support, so it may be worth a closer look.
First off, the company manufactures medical alarm devices to summon help in the event of an emergency. Given recent powerful advances in coordination between networks and civil service infrastructure today, this is a legitimate telehealth technology resource.
The company’s products are designed and marketed primarily to the elderly, physically disabled, and individuals living alone through a large international dealer base. The primary market focus, on the elderly, positions the company as a key player in one of the most aggressive growth themes staring at us over the next two decades.
Due to demographic factors, about 10,000 people in the US will turn 65 years old every single day for the next 20 years.
As far as recent catalysts, the company is moving forward along several thematic lines.
WHSI is moving toward a coming uplist to the OTCQB tier at OTCMarkets.com. They have already engaged an auditor to do the required audit of two years of back financial records. We can expect more updates on this theme going forward.
The company recently also announced that it is participating in, and has begun to ship products to, a pilot program with the Government of Bermuda, which will sell its iHelp Devices through a local dealer network to further grow the Company’s business in the region.
Pilot programs can be essential to growth in a company like this. The Bermuda program may give WHSI key hard data on improved emergency care and health outcomes among their target population that they can then take to other large potential customers and expand purchase orders.
According to that release, the Ministry of Social Development and Seniors has launched this pilot program with the Disability Center of Bermuda (DCOB) which is investing in Care Safety and Security (ICSS) to provide GPS “Life Safety Devices” at a reduced cost for seniors with Dementia, Alzheimer’s and persons with disabilities.
The other big news from Wearable Health Solutions Inc (OTCMKTS:WHSI) is a major step in terms of its global product and investor exposure: it has entered into an agreement with ‘Worldwide Business with Kathy Ireland’ to create impactful video pieces designed to educate the Company’s target market of dealers and distributors of Wearable Healthcare devices, and for use in promos and social media for prospects, clients, and associates, including, but not limited to Facebook, YouTube, Instagram, Twitter, and Linkedin.
According to the release, the collaboration is designed to create video marketing vehicles that will be broadcast via several social media and television platforms in order to bring awareness to WHSI’s products and services and to increase the Company’s share of the Global Medical Alert System Market. The market is estimated to be $7.4 billion in 2021 and is expected to reach $10.9 billion by 2026 with a healthy CAGR of 8.3%. With the enormous scope of reach of Ms. Ireland’s network, WHSI intends to see a large increase in dealer hardware sales and airtime recurring revenue.
The deal will give WHSI US and International television exposure including: Fox Business Network as branded content – 80 million potential US Cable Households including 20 million DirecTV subscribers, Roku (43 Million Active Accounts), Amazon Fire (40 Million Users), and Bloomberg International Television Exposure (198 million Cable Households) in Western Europe, Eastern Europe, Central Europe, Middle East/Africa, China, Hong Kong, Japan, Taiwan, Singapore, Malaysia, Mexico, Brazil, Argentina, Colombia, Venezuela, and the Caribbean.
A Look at the Chart
Technically, Wearable Health Solutions Inc (OTCMKTS:WHSI) recently put in a rising base pattern, with range lows coming at rising levels over the past year.
The most recent action has also generated an RSI bull signal with a tailed, or doji, candle coming at a sub-34 print, with the close holding the support in the higher base pattern. That suggests strong potential accumulation under that range, offering interested traders and investors a level to play against.
We would also note that, according to OTCShortReport.com, shorting activity has gone through the roof in the stock over the past week, with more than 60% of all transactions coming from short interest in 3 of the past 6 days, and almost 18 million shares shorted over that same period.
That suggests the stock could be ripe for a short squeeze on any new influx of bullish interest.