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Why did the Austco Healthcare (ASX:AHC) share price rocket 15% today?

Not quite a Gamestop moment, but here’s what happened…
The post Why did the Austco Healthcare (ASX:AHC) share price rocket 15% today? appeared first on The Motley Fool Australia. –

Shares in Austco Healthcare Ltd (ASX: AHC) were soaring today following a recommendation by Andrew Page, founder of share market research business Strawman. By market close, the Austco share price was trading at 15.5 cents – 14.81% higher than yesterday’s close.

However, earlier this afternoon, Austco shares were up by more than 18%, swapping hands for a 52-week high of 16 cents apiece intraday.

Austco is a microcap creating healthcare communication solutions. One of its major solutions is a nurse call system which it believes is the most advanced of its kind. It also provides a reporting and analytics platform for nurse call data and a mobile platform for its nurse call solution.

Let’s take a look at what Page had to say about Austco Healthcare today.

ASX pile-in

This afternoon, Page appeared on television program ausbiz stating he believed Austco shares could be a “‘life-changing stock”.

According to a Twitter Inc user, after Page’s appearance, the number of trades involving Austco shares increased 15 times over.

Really silly for people to pile in like that

— Andrew Page (@sage_simian) July 7, 2021

Page replied to the Twitter user saying it was “really silly for people to pile in like that”.

In the program, Page commented on the risks associated with investing and noted the additional risks involved with investing in small companies. Of his recommendation, he said:

[picking a ‘life-changing’ stock] is a game that you have to go to the risky end of the spectrum… It’s an area where you only get 3 or 4 out of 10 [recommendations] right.

He went on to explain why he believes Austco shares make a solid investment for his own portfolio, saying:

This is a profitable company. They’re making about $3 million in profit. No debt. $6 million in cash. High inside ownership…. I think they’ve got a lot of potential here. If they can keep implementing these solutions [and] continuing to win, there’s a lot of upsides.

Those interested can watch the entire segment here.

Austco Healthcare share price snapshot

Thanks in part to today’s gains, the Austco share price is sitting more than 56% higher than it was at the beginning of 2021. It has also gained around 96% since this time last year.

The company has a market capitalisation of around $44 million, with approximately 284 million shares outstanding.

The post Why did the Austco Healthcare (ASX:AHC) share price rocket 15% today? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Austco Healthcare right now?

Before you consider Austco Healthcare, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Austco Healthcare wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Here’s why the Austco (ASX:AHC) share price is rocketing 12% today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Twitter. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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