I trust readers will forgive me for another post on this emerging global health-care stock, Admedus.
I keep coming back to it for subject matter, not to “ramp” it up, but rather to focus my attention on how its share-price is performing, thus helping me to make appropriate investment decisions.
I am deliberately over-weight in Admedus because it is in a sector with which I am familiar, and it is making rapid progress manufacturing in Perth, and marketing globally, a number of potentially lucrative medical products.
My perception is that it is a growth stock for the long-term, because it needs to meet its market potential over a decade or more. Because there is a lag in market recognition for start-up companies, and so many venture capital enterprises fail to take off, institutional investors may opt to accumulate stock cautiously as the sales revenue slowly increases. This would seem to be the case for Admedus, whose share-price has scarcely moved in the past twelve months. For this reason, I along with other investors have turned to range trading for a return on our investment.
I see technical analysis not as a crystal ball for foretelling the future, but as a logical tool to assess market response to news and events.
The 2H 2017 market report released 28th February was positive, and projected growing sales and profit in 2018. There have been several bullish news releases since then, and CEO Wayne Paterson has been most persuasive explaining Admedus’s prospects on a road-show for investors in the US and in Australia.
This is a daily chart from Incredible Charts for the past six months. The share price is now in an uptrend, and has penetrated resistance at 30 cents.
This is a 12 month daily chart provided by Metastock with Paritech data.
The Parabolic Indicator shows the share price to be in an impulsive move higher.
The share price has just broken out on the upside from a triangular trading range. The range from the previous low to the high of the trading range is 9 cents. This suggests the possibility of another 9 cent rise from the low of the trading range to the next target at 38 cents.
It also shows respect for a resistance/ support/level at about 30 cents.
Thus far the market has responded in a restrained but positive way, to the recent news releases coming from the company.
I wish to remind readers that I post for my own benefit, rather than others. I am not qualified to advise others so anyone looking to buy into this health-care company should first seek advice from their broker or qualified financial adviser to ascertain whether or not it meets their investment criteria.
The reason I have been monitoring Admedus so closely is that after accumulating shares over the past year at prices under 30 cents I do not wish to sell down my shareholding too cheaply, since it may well prove to be a long-term growth stock.
Categories: Chart Analyses, Trading opinion
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