Patient Home Monitoring Corp. (PHM:TSXV) has witnessed a surge in liquidity over the past 21 trading days. The search for profitable healthcare stocks is on as the TSX Venture embraces this shift in liquidity. With PHM’s share price hovering near its 52-week lows investors are wondering if this increase in volume may be signalling a bottom.
Taking a glance at PHM’s chart, the signal is currently flashing bearish, given its share price has closed below its 50 day moving average in recent sessions.
Profitable Healthcare Stock Patient Home Monitoring trades nearly 50 million shares
In the past 21 trading days, Patient Home Monitoring has traded over 49 million shares, representing nearly 1/6 of the company’s total shares outstanding. This is significant.
PHM has been under duress for many months after its shares began falling precipitously in the summer of 2015. In early August of 2015, BNN published an article titled What went wrong at Patient Home Monitoring? Unfortunately, more than 6 months later, investors are wondering the same thing. Below is a short excerpt from that August 2015 article:
“After to speaking to shareholders and company insiders, BNN’s Amber Kanwar reports the stock selloff began because of three factors:
- A mistaken regulatory filing that indicated former executives Michael Dalsin and Roger Greene had sold more than 26-million shares. The pair actually sold 13.4-million shares.
- Greene and Dalsin’s decision to hand over management of the firm to a new executive team.
- The decision by Dalsin and Greene to exchange 5-million of their Patient Home Monitoring shares for units LDIC Inc.’s Healthcare Special Opportunities Fund (MDS_u.TO), a new closed-end investment vehicle trading on the TSX. Fund manager Michael Dector said he will have to sell some Patient Home Monitoring shares if they touch $1.50 to keep the fund diversified.”
source: http://www.bnn.ca/News/2015/8/7/What-went-wrong-at-Patient-Home-Monitori…
So, while losing key executives, particularly Dalsin, investors have been left somewhat disenchanted by the profitable healthcare services company.
Patient Home Monitoring’s shares dip to near 52-week low
Patient Home Monitoring‘s shares fell to a low of $0.405 Tuesday – half a penny above the company’s 52-week low.
Patient Home Monitoring – 1 Month Chart
Patient Home Monitoring’s shares fall
Despite the falling share price, Patient Home Monitoring is giving investors a lot to think about in 2016. The company reported last week that it will post its full financial results for Q1 saw revenues increase more than 294% from the same quarter a year ago and 36% from the previous quarter.
While the company is profitable, many investors have been concerned about profit margins as the company works to gain market share of the annuity-based healthcare services market in the US.
In respect to Q1’s results, Casey Hoyt, CEO of PHM, commented that:
“The first quarter results show yet another record in top line revenues for the company and a sequential increase in our margins as we continue to integrate our business units.”
And that, “We will certainly see the benefits of our organic growth strategy over time as we continue to make significant operational improvements in our business…”
Click here to read the entire quote and press release from February 10th.
Patient Home Monitoring stands nearly alone as one of the only profitable companies in the healthcare services sector listed on the TSX Venture. We wrote about the healthcare sector in a recent article titled The Next Investing Super-Cycle Has Arrived.
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