Authentidate Holding Corp. (Nasdaq: ADAT) $0.78- Authentidate has been on a tear recently with shares up 189% from an all-time low of $0.27 reached on July 7. In May, I wrote about ADAT when it was trading at $0.43 and recommended the stock since I believed it was undervalued.
Since its trading low, daily volume has averaged 108k for the subsequent 14 trading sessions. For the 14 sessions prior to its low, ADAT’s average daily volume was 17k. Hence, there has been strong demand for ADAT shares. This trend bodes well for continued share price appreciation.
I think there are a couple factors responsible for the recent rally. First, ADAT is a good value with $0.53 cash/share and is expected to reach cash flow breakeven in the next 2-3 quarters. Second, ADAT recently announced a new joint venture with EncounterCare Solutions, Inc. (OTC PK: ECSL that represents its entry into a new market vertical. This new segment offers a significant opportunity for revenue growth and profitability.
ExpressMD Joint Venture Press Release (June 10, 2008):
The joint venture called ExpressMDTMSolutions will provide in-home patient vital signs monitoring systems and services to improve care for patients with chronic illnesses and reduce cost of care by delivering results to their health care providers via the Internet. ExpressMD Solutions will combine EncounterCare's Electronic House CallTMpatient vital signs monitoring appliances with a specially designed web-based management and monitoring software module based on Authentidate's InscrybeTMHealthcare platform.
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