Groundbreaking healthcare firm on rise

By This Is Money
Updated: 11:44 EDT, 27 October 2010

One of the biggest challenges to global healthcare markets is to reduce costs, while maintaining or improving operational efficiency.

Toumaz Holdings (TMZ) a £50 million capped Swiss registered company trading on AIM with operations in the UK and Taiwan, addresses this with some groundbreaking technology.

Toumaz's Sensium products changes the way healthcare professionals' monitor their patients' vital organs, by applying a disposable unobtrusive nodule that is attached close to the organ in question.

This transmits important data to a PDA or smartphone wirelessly to the healthcare worker, allowing the carer to attend to other duties whilst simultaneously looking and/or listening out for signs of distress using their remote device.

Additional to this, Toumaz have semiconductor modules that can transform DAB radio internet connectivity, allowing users to download music, do online purchasing and facilitate widgets that connect to social networking websites.

In November last year, Toumaz Technology, a wholly owned subsidiary of Toumaz Holdings, won 'Emerging Technology Award of the Year' by the National Microelectronics Institute.

Also, leading analyst Gartner, this year awarded the company 'Cool Vendor' for exemplifying a possible transformative solution for global healthcare providers.

Interestingly FTSE 250 chip designer Imagination Technologies (IMG) owns 5.9 per cent of this company.

At June 2010 the company had £5.5 million in cash albeit it lost £3.6 million at the interim stage, so at some stage we have to expect Toumaz to come back to the market for additional cash.

The company has signed up with Quanta Computer Inc as a strategic partner to address the Chinese healthcare markets. Progress on this front will be highly exciting for investors given the vast population China has.

Expect the stock to potentially double from here (and possibly much more) if it signs up a healthcare provider contract in China but on the protective side, if the stock closes below 5p (mid), it might suggest that things are not going to plan and perhaps it would be worth considering an exit.

Update

Rurelec - Tipped as a buy at 14.25p, it closed at 14.75p yesterday. Developments should 'hot' up over the next few weeks to see if the company & Freshfields, its lawyers, negotiate a successful settlement with respect to its Government requisitioned assets held in Bolivia.

Nanoco – Tipped as a buy at 95p, the stock reached the initial target of 115p, before slipping back to 111p yesterday. Sit tight but raise the stop to 105p to ensure profits.

Renewable Holdings – Tipped as a buy idea at 16.25p, it closed yesterday modestly up at 16.5p: with 31p in net assets and cash in the bank, it is worth staying in.

Jubilee Platinum – Tipped as a buy at 33.75p – it closed yesterday at 31.25p: hold for now but if it closes below 30p, cut the position.

Bowleven – Tipped as a buy at 177.25p, the stock closed at 169p yesterday. Sit tight and wait for drilling developments while on 9 November we have the company's preliminary results. If the stock closes below 149p, cut the position.

New British Palm Oil – Tipped as a buy at 572p, the stock closed at 739.5p. The stock remains in break-out territory. Raise the stop to at 695p to ensure profits.

IQE – Tipped at 24.25p, the stock closed yesterday at 38.5p.Keep holding for now.

Tissue Regenix – Suggested as a buy at 16p, the stock has slipped to 11.25. The company announced its interim results last week, which although nothing new was revealed, at least got its name back out there in front of passive observers. Sit tight and hopefully we will see news-flow kick start the stock back up again.

Pursuit Dynamics – Suggested as a buy at 223p: the stock closed yesterday at 436p. Keep the stop at 395p to ensure profits.

United Utilities – Buy idea suggested at 593p: the stock closed yesterday at 598.5p. Yesterday it received another downgrade, this time from American Investment house Jefferies. Take the small profit and move on. The idea hasn't worked in the time-frame I was hoping for, but at least one can come out sideways/slightly up.

Bodycote – Buy Idea suggested on 28 July at 236.4p: the stock triggered the stop loss of 279p, thereby locking in an 18 per cent profit.

The material for this report comes from Alpha Terminal. The writer does not hold any shares or derivatives in the above mentioned companies except Renewable Energy Holdings. Some clients of Optiva Securities hold shares in the above mentioned companies.