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Tuesday, February 7, 2023

G Medical Innovations (GMVD) Stock: Should You Join the Frenzy?

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Joshua Rodriguez
Joshua Rodriguezhttps://cnafinance.com
Hey, Im Joshua, the founder of CNA Finance. I enjoy following the trends in the market and finding the catalysts that are making the moves. If you want to get in contact with me, leave a comment below or email me at [email protected].

G Medical Innovations Holding Ltd (NASDAQ: GMVD) is trading on extremely high volume and posting significant gains. This is all part of a wild ride that started on January 5th, when the company announced it had been granted two new United States patents. 

Sure, with the great news out there, you may think it’s time to dive in – but as with all investments, it’s important to do your research first. Read on below for a glimpse into what’s going on with GMVD stock, what G Medical Innovations does, and whether or not the stock is worth a second look for investors or traders. 

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The Scoop on the GMVD Stock Spike

As mentioned above, GMVD has seen some seriously volatile movement since it dropped news that it received two new United States patents on January 5th. Here are the details of those patents:

  • METHOD, DEVICE AND SYSTEM FOR NON-INVASIVELY MONITORING PHYSIOLOGICAL PARAMETERS: This patent is related to a sensing mechanism that allows a monitoring system to analyze the sensing condition before and during continuous monitoring of physiological body signals. The sensing condition analysis looks at pressure, ambient temperature, light, conductivity, and other parameters. As a result, sensing is more accurate and fewer false alarms take place. 
  • JACKET FOR MEDICAL MODULE: The company also received a patent for a device that acts as a smartphone flip case but allows consumers and patients to carry their monitoring devices in the case with their phones. This makes it easy for patients to monitor their vital signs and other parameters anywhere. 

What Is G Medical Innovations?

Although GMVD stock is flying, we spotted the first red flag when we looked for the company’s website. It seems non-existent. Here’s a screenshot of what you get when you search Google for “G Medical Innovations:”

OK, I should rephrase that. The domain name for the company, “gmedicalinnovations.com,” exists. However, when you load the site, you get the following:

So, we had to do some digging to get a better understanding of the company. We started by reading through press releases and followed up by digging through the company’s SEC filings. Here’s what we were able to find out:

  • The Company: G Medical Innovations Holdings is what you would expect if a healthcare company and a technology had a baby. The company’s central focus is on the development of mHealth and telemedicine solutions and monitoring service platforms. Think of medical devices mixed with software as a service concepts in the healthcare industry. 
  • Core Areas of Focus: G Medical Innovations hopes that its innovative solutions result in better outcomes for patients with cardiovascular, pulmonary, and endocrine diseases and disorders. 
  • Mobility: The company’s products show that its core interest is in mobile medical devices. It’s flagship product, Prizma, is a medical device that’s currently under development. Prizma is designed to turn any smartphone into a medical monitoring device – giving patients the ability to monitor their health from anywhere and empowering providers in the process. 
  • The Stock: GMVD stock has been on a run for the top for the past few weeks. On December 20, 2022, the stock was trading at about $2.00 per share. Today, GMVD shares are more than double that price, sitting at about $4.40 per share. Although there are strong fundamental reasons for the growth, investors should beware that the company is far from profitable and will likely need to raise more funds in the future. 

Should You Get Involved in GMVD Stock?

Ultimately, the decision to invest in any stock is yours and yours alone – and it’s important that you know that CNA Finance isn’t an investment advisor or broker-dealer. Our goal is to outline the information in an easy-to-digest way and let you make educated decisions. With that said, there are some people that should stay far away from this stock:

  • Investors: If you’re a long-term investor, GMVD isn’t likely to be a strong choice for you. The company is a clinical-stage medical device company. Sure, it does produce some revenue, but it’s far from profitable and even further from proving its ability to tackle a market in a long-term sense. Warren Buffett once said that you shouldn’t hold a stock for 10 minutes that you wouldn’t own for 10 years. Unfortunately, it’s far too early in the company to make any predictions as to where it might be in 10 years. 
  • Beginner Traders: Traders are attracted to tremendous volatility – the type of volatility we’ve seen from GMVD stock as of late. However, if you’re a beginner trader, this may not be the stock for you. At this point, fundamentals are out the window and GMVD is trading based on sentiment rather than data. In order to make a profit on a stock like this, you’ll need a deep knowledge of technical analysis and strong charting abilities. 

With that said, if you’re an experienced trader who knows their way around charts and technical ques, GMVD may be the perfect stock to consider getting involved in. 

Where Is GMVD Going From Here?

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There’s no telling with 100% accuracy where any stock is headed. GMVD is even more difficult to predict than others on the market due to its extreme volatility. With that said, I’m expecting a wild ride ahead. After a more than 42% gain Monday, we can expect a bit of a decline on Tuesday. Keep a close eye on technical indicators to determine where the stock may be headed afterward. 

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