Tuesday, August 11, 2015

The rapid rise of Patient Home Monitoring:



 I see at about 12:30 today the shares of Merus Labs International Inc (TSE:MSL) at $2.58 are down 14% on about 3 million shares – about 6-times the average volume. Seems like another compelling storey has turned into a bad ending.

On the topic of compelling stories - on Friday May 8, 2015 BNN’s Andrew McCreath tweeted “$PHM Patient Home Monitoring Chairman on @BNN 'Weekly w McCreath' in 10 minutes & again at 8:30 pm tonight! #momentum”

On May 12, 2015 a follow up video - Investing Ideas - The rapid rise of Patient Home Monitoring - Part One – BNN commentator Andrew McCreath speaks with Michael Dalsin, Chairman, Patient Home Monitoring about the company's rapid growth strategy,

Also - Patient Home Monitoring (PHM.V) has been a recent stock darling for Market Call guests, appearing as a top pick eight times over the last year. The Venture-listed stock has run up more than 550 percent in the last 12 months alone, based on its growth by acquisition model, as the in-home health care provider acquired nine companies over an 18-month span.

“The wave is finally here. Ten thousand people a day turn 65-years-old and the market is ripe and there’s a lot of demand,” Michael Dalsin, chairman of Patient Home Monitoring told BNN’s Andrew McCreath.

Many investors, however, approach this ‘roll-up’ strategy with scepticism. BNN’s Frances Horodelski says one risk associated with this strategy can be found in accounting. “Acquisition accounting can mask true underlying, organic growth,” she said. “Things can get messy with leverage, non-cash items, balance sheet adjustments, tax policy changes, a host of things that require a deep analysis to uncover.”

Now the technical analyst will usually focus not on the news – but how a stock will react to the news. In other words if the news is negative and the stock goes up. that is bullish – and if the news is positive and the stock goes down, that is bearish. Stocks trade at not what the news is – they trade on what the news will be in the future. So the bullish Dalsin – McCreath interview took place on Friday May 8, 2015 after the close of trading. Now a bullish investor may anticipate a big up day the following Monday May 11 – but no – the stock closed at $1.51 down on the day  A PHM chart tells all.






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