eWELLNESS HEALTHCARE Corp (OTCMKTS:EWLL) Is A First Mover Disrupter In A $30 Billion Industry

eWELLNESS HEALTHCARE Corp (OTCMKTS:EWLL) is up close to 350% on its December open, with very little in the way of fundamental developments present to support the gains. The company is attracting high volume, and it's getting to the point where markets are wondering is this just a boost for dilution to sell in to, or is this a genuine run?It's tough to say. There are a huge number of dilutive shares (circa 50 million) ready to sell, and that could easily put pressure on PPS near term, if they execute. However, with that said, eWellness has what looks to be a revolutionary business model, and it's not going to take much for this company to start generating considerable revenues. High double digit million dollars annually within three years is not unrealistic. It may sound it right now, given the company's market cap of just $5 million, and it's flat zero top line figure. But it's not as far fetched as it seems.For those new to this one, it's a physiotherapy company run by a very well known physiotherapist, Darwin Fogt, who operates treatment centers in New York and LA. It's designed a telemedicine system, called the PHZIO platform, which allows for remote physiotherapy programs to help patients across a whole scope of different PT requirements – post stroke, joint replacement recovery, that sort of thing.Anyway, here's the important thing. It's a first mover in an industry that– as things stand – seriously needs a shake up. The current state of the industry is extremely fragmented, with the largest 50 centers only accounting for 25% of total industry revenues, and most centers are independently operated. These operators face considerable challenges – most therapy is one on one, limiting income, the centers need to be ground floor in built up areas, adding to operating costs, and that's just the start.Despite these issues, $30 billion flows through the PT industry annually.Fogt has tried to address the problems faced by the majority independent portion of the market, and his answer is this platform. It's sessions are reimbursable through major insurance providers, and it allows for a one-to-many treatment system, allowing one therapy center to carry out numerous sessions at once, improving income potential.At a relatively cheap session cost (say $15 a session), a relatively conservative session count per therapist weekly (say 50-70 sessions, which is highly achievable with the one-to-many concept that PHZIO affords the PTs) and given there are somewhere in the region of 200,000 PTs practicing in the US right now, it's not going to take much market penetration to hit on high double digit, or even low treble digit revenues annually. This is, in fact, what the company is targeting by 2020. Here's a quote from a PR announcing a hire made earlier in the year, Daniel Mills, Chairman of Key Outreach Committee at eWellness:

"… (the company's) goal is for Mr. Mills to attract licensees for the Company's PHZIO telemedicine and assist eWellness with attaining its growth target of 2,600 plus PT licensee users by 2020. Our estimates indicate that a PT user base of this size could translate into $110 million per year in top line revenue for eWellness with 90% gross margins"

So, that's the potential, but of course, there's risk, and right now it's largely rooted in dilution potential. The company just closed on a financing that leaves $375,000 worth of shares read to drop, and there's plenty of convertible on the books adding weight to the issue. With this in mind, there's a good chance we'll see a near term correction, and some negative sentiment putting pressure on market cap. That said, there's real long term potential here, so for a shareholder not looking to jump in an out for pennies day to day, and instead looking to hold for longer term gains, it’s an interesting exposure.We will be updating our subscribers as soon as we know more. For the latest updates on EWLL, sign up below!Disclosure: We have no position in EWLL and have not been compensated for this article.