Patient Home Monitoring Corp. a speculative investment

Dec 9th, 2013 – Comment

If you like the story you would be best served to see if the shares can get back onto an uptrend.


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 PHM LOGO

 

Hi Lou,
I would appreciate your thoughts on a small cap stock called PHM Corp (PHM).

Thanks,

Brent

 

Hey Brent,

 

Thanks for the assignment. Patient Home Monitoring Corp. (PHM TSXV) is a company with a market capitalization of $18.97 million and which has an average daily volume of 687,433 shares over the last thirty days. With the shares trading below $0.30 we need to accept that this stock should be placed in the speculative portion of your portfolio.

The company plans to grow via acquisitions and has identified that there are approximately 10,000 small companies operating in the home health monitoring segment providing lots of opportunities for consolidation and cross selling. Management has cited an aging population as a growth driver with health management organizations shifting chronic disease treatment into the home.

An examination of the charts will inform my thoughts on PHM.

 

 

PHM

The one-year chart indicates that the shares started to move in June of 2013 when it was trading near $0.07. The advance took the stock to a 52-week high of $0.38 by late September. PHM then lost momentum and pulled back to $0.225 in December. Currently the shares are hitting resistance along the 50-day moving average.

 

 

 

 

 

PHM2

The six- month chart provides a close-up of the gap up in mid September which was driven by a top pick mention from Jerome Hass, a partner at Lightwater Partners. Hass disclosed that he had been a buyer at $0.10. The MACD and the RSI both generated sell signals when the shares were trading above $0.30 providing opportunities to capture profits.

If you like the story you would be best served to see if the shares can get back onto an uptrend. You also have to keep in mind that there is not a lot of history to evaluate adding to the speculative nature of this investment. Finally you have to be prepared to act and act quickly to book profits before they are no longer available.

Make it a profitable day and happy capitalism!

Categories: Health Care
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