HeartSciences, or Heart Test Labs (NASDAQ: HSCS) for the official corporate name, stock has been more than a little volatile just recently. There is no good reason for this - the only news piece is a minor trial in Ireland: “ Heart Test Laboratories, Inc. d/b/a HeartSciences (Nasdaq: HSCS; HSCSW), an AI-powered medical technology company focused on transforming ECGs/EKGs to save lives through earlier detection of heart disease, today announced that its MyoVista® wavECGTM has been selected by Cardiact Ltd (“Cardiact”) to be used in its heart screening program of members of the Association of Garda Sergeants and Inspectors (“AGSI”). In addition to the purchase of a MyoVista® device, Cardiact has placed an initial supplies order covering 2,400 patient tests.”
One machine, eh? That’s enough to change the stock price 83%?
HeartSciences stock price from Google Finance
Or as we’ve put it before about Heart Test: “Our assumption is this. Heart Test started at an under $2 million market capitalisation - a true nanocap. It doesn’t take much buying to start a price move going, especially in the thin out of hours markets. Add in something like “Oooh, but they do AI!” or something equally fashionable and a speculative flurry can be started. Which is what we think is happening here - and no more. Obviously, if another truth emerges we will update. But we think this is a momentum trade and no more - the big question about those always being OK, when’s it going to stop and reverse? “
That’s from a week back. As you can see from that share price chart that reverse of the momentum trade started happening about the time we hit print on this here machine. We’d not expect today’s rally to last all that much longer to be honest. Simply because there isn’t anything announced to drive it. One of those speculative flurries that nanocaps are prone to.
