Rennova Health Inc. (NASDAQ: RNVA) Just Did This, and It Could be Big…

Rennova Health Inc. (NASDAQ: RNVA) is a vertically integrated public healthcare holding company. Rennova Health focuses primarily on serving essential health care categories, and it develops and operates forward-thinking businesses, systems and services in an attempt to support better treatment outcomes, and cost-effective patient care, while optimizing revenue streams.

The stock may be turning around, and it looks like it’s catching a bounce. RNVA shares have been fallen over 85% over the past year, as of March 3, 2017, but it’s been up 14.46% YTD and 40.53% over the past month. According to Morningstar, RNVA has significantly outperformed its industry of health information services, and it could continue to rise.

Here’s a look at RNVA’s recent performance.

Source: TradingView

On March 2, 2017, Rennova Health announced that the Big South Fork Medical Center in Oneida, Tennessee received nearly 200 job applications within hours of opening its online portal in order to facilitate the hiring of new potential staff.

According to Leader of the Hospital Division for Rennova, Joseph Herrod, “We continue to believe we are on schedule to reopen this hospital in the second quarter, and look forward to the provision of a needed service to the community…Where possible, we will hire people from the local community and initial applications indicate that many previous employees are looking forward to getting their jobs back. The hospital will employ approximately 130 people in full operation”

The is a Big South Fork Medical Center with a 52,000-square foot hospital building and a 6,300 square foot professional building on over 4 acres of land. For the fiscal year end in 2015, the hospital reported unaudited annual revenues of approximately $12M and a normalized EBITDA of approximately $1.3M.

CEO of Rennova Health Seamus Lagan stated:

“We believe our accomplishments and timeline to reopen the hospital in Oneida and continued accomplishments in our overall business are in keeping with our strategy and business plan…We look forward to a strong recovery in 2017 after a very difficult 2016, and we anticipate filing our 2016 audit timely by March 31st and updating our shareholders and investors at that time.”

That being said Rennova Health continue its rise in 2017 with this recent development.

Rennova Health provided outlook for 2017, which included comments on its business strategy along with milestones.

On January 5, 2017, Rennova Health CEO stated, “We took a number of steps in 2016 to address challenges in the substance abuse testing sector, and we have begun to see the initial signs of success that will be instrumental to a return to top-line growth. Indeed, our fourth quarter was the best quarter for new sales in more than a year, and included several new clients, as well as a number of returning clients…We have diversified our business model and have secured in-network contracts with a number of third-party payers. We have moved from a concentration in substance abuse testing services in a single geographic location to providing a range of diagnostic services across the nation to an expanding and varied customer base.”

Prior to this news, on January 20, 2017, Rennova Health announced that its Genomas, Inc. pharmacogenomics subsidiary was granted a Patent by the U.S. Patent and Trademark Office. Genomas is a biomedical company bringing DNA-Guided medicine  to clinical practice with products for the personalized prescription of drugs used in the treatment of mental illness, diabetes and cardiovascular disease. Now, the company’s products aim to eliminate trial-and-error prescription with DNA-Guided medicine. Moreover, Genomas’ products could enable physicians to treat with unparalleled precision, improving effectiveness, while avoiding significant side effects with drugs.

Rennova CEO said, “This is an exciting development for Rennova and is evidence of our effort to be a leading and innovative provider of healthcare solutions…in addition to our own efforts to capitalize on this patented technology in the personalized medicine industry by including these three key genes in diagnostic panels, we will explore business partnerships and licensing opportunities.”

The Bottom Line

Rennova had some good news lately, and its stock price has been rising. On March 3, 2017, shares of Rennova were up 38.35% on the day and closed at $2.85. Moreover, the stock traded over 17M shares on the day. However, RNVA has been beaten up over the past year, and was down 86.43% over the last 52 weeks. That being said, Rennova could provide a good risk-reward ratio since the stock is well off its 52 week highs, and could have some more catalysts that would push RNVA higher.

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