PainChek Ltd (ASX: PCK) is an ASX listed healthcare company which uses facial recognition software to detect the presence of facial micro-expressions from a small video of the person, taken from a smartphone in real time. Due to its reproducibility, ease of use and speed, it can also be used to detect and measure a person’s pain.
On 27th May 2019, the company declared that it has closed a BDA (Binding Distribution Agreement) with PCS, Person Centred Software.
PCS provides Mobile Care Monitoring (MCM), which is a high-tech mobile solution for digital care planning, reporting and analysis etc. and is being currently used by over 1,200 care homes across the UK.
Under the agreement, the PainChek® app will be distributed by PCS in the UK. The integration of PainChek® into PCS’s Mobile Care system will enable the care takers with pain assessment and monitoring of their residents.
Philip Daffas, CEO of the company, stated that the team is happy to join hands with PCS and together they can build on the positive learning and market acceptance and take it to an even larger market. He also stated they had maintained the pricing in the UK market in line with the Australian model.
Jonathan Papworth, Co-Founder and Director of Person Centred Software said they are seeing PainChek® as a significant addition to the quality of care management in the UK and are ready to enter the market with already completed PainChek® integration.
The short term and the long-term trend of PainChek Limited are extremely bullish, and no sign of any weakness is seen in the stock price momentum. On 29th April 2019, the company informed that Morrison government will invest $5 million for PainChek® trial in aged care. This fundamental news was welcomed positively by the market participants. However, On 29th April 2019, the stock was in a trading halt; therefore, the market participants could not react to the news. Further, On 30th April 2019, the company declared its quarterly updates for the quarter ended March 2019. The updates and cash flow statement details also seemed to impress the market participants.
The market was eager to react to the investment news and the quarterly update and on 30th April 2019, the stock resumed its trade on ASX and opened the day’s trade at A$0.072 up by a massive 111.7% as compared to its previous close price of A$0.034 on 26th April 2019.
This massive gap up rise was supported by an equally massive volume. The stock traded with a volume of 39.58 million, which was exponentially higher than the its then past 20-day average volume of 2.86 million (as of 30th April 2019). This was just the beginning of a strong uptrend, and in the coming days the stock rallied incessantly and currently trading above its 4-year high.
Daily Price Chart of PainChek Ltd (Source: Thomson Reuters)
As of 27th April 2019, on the daily chart, the RSI was at 84.56. Any reading above 70 indicates an overbought zone and consequently expectation of a correction. But 84.56 depicts a very high demand for the stock, and as of now, no correction is seen in the price chart or the RSI. However, when the price would start to correct, the RSI will also come down, and a reading below 70 would mean the initiation of the expected selling.
The company has a market capitalisation of A$113 million, and the stock had touched a 52-week high and low of A$0.147 and A$0.027 respectively.
The stock price shot up by a massive 41% on 27 May 2019 and the stock today is further up by 7.692% and closed the session at A$0.14 (as on 28th May 2019). The last one-year return of the stock is 120.34%, and the YTD return stands at 217.07%.