Patient Home Monitoring Corp. in a steep decline

Oct 19th, 2015 – 1 Comment

Insider sales put a hurt on investors.


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Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.


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PHM LOGO

Hi Lou,
I have a question regarding PHM.
Where do you see this stock going in the next year or so?
I would appreciate your thoughts.
James

 

Hey James,

Thanks for the assignment. This will be the third time since 2013 that I inspect the charts for Patient Home Monitoring Corp. (PHM TSXV). The last was on June 8, 2015 when the shares were trading for $1.57 and Tom wanted my opinion on the prospects for the stock price over a one to two year investment horizon.

I provided Tom with a snapshot of the situation with the stock but had to inform him that my skills do not include providing long term forecasts. What was evident at the time was the PHM was pulling back from its 52-week high of $2.01 and was meeting resistance along the 50-day moving average. The MACD and the RSI both generated sell signals as the stock topped out in April of 2015.

It was advised that the best case scenario would be a period of base building near $1.40. Unfortunately by July of this year the shares broke below $1.40 and later in the summer had to endure public disclosure that on July 14 two insiders had sold 13.4 million shares at $1.36.

Another audit of the case will outline the current situation at PHM.

 

PHM

The three-year chart highlights a number of patterns that demand acknowledgement. The break below support at $1.40 in mid July led to a breach of the 200-day moving average by the end of the month. Late in August a death cross surfaced informing the astute investor that they could expect more selling pressure.

 

 

 

 

 

 

 

PHM2

The six-month chart puts the spotlight on the resistance the stock been meeting  along the 50-day moving average and the inability to hold support at various price levels. Currently it appears that PHM is on its way to testing support near $0.43. Finally there is scant evidence that we can expect a trend reversal in the near term.

The best approach to PHM is to put it under surveillance and look for trading opportunities within the downtrend.

 

 

Next time I will examine the case for TransAlta Corp. (TA TSX) for Arun.

 

Make it a profitable day and happy capitalism!

 

 

 

 

 

 

 

 

 

 

 

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