Post by
ownedit on Jul 21, 2017 2:04pm
Bull Flag Forming?
Looks like a Bullish Flag forming. Today it closed the gap up that formed a couple of days ago. Good Q numbers next week could spark the next jump. A break out of the flag pattern with descent volume should put it on the road to the about 25.00, with the ultimate goal of filling the gap down in the 28.00s. That should come when they resume raising the dividend.
Analyst Brenna Phelan noted the necessity of getting more clarity on Group SM, but she seems blissfully unaware of recent developments including recent loans to Group SM that will cover a lot of what they owe to Alaris, if they wished.
Group SM is looking for a win in "a client dispute." If this is about Algeria, it is promising. The Algerian Government oil company recently settled a dispute with French company that I believe has partnered with Group SM in the past. Either way Alaris looks like it is covered. Group SM has assets to sell to cover Alaris's investment, their recent loan to cover payment to Alaris, and the potential to resolve a major dispute with a client. Saying Alaris risk is still significantly elevated with GroupSM seems a little much.
IAM gave Group SM $28 million in a loan in May. If Group SM was such a risk, why are they loaning it to them?
Things have changed and keep changing for the better for Alaris. However the stock price is not reflecting shifts in the company's fundamentals. To me it is mis-priced to the downside now.
Looking for a break out next week.
Comment by
CrAyZe on Jul 21, 2017 4:08pm
Good information. I hope we do get some news on Group SM so that problem can "go away" Any chance we sink back to $20 and erase all of gains from the KMH announcement?
Comment by
ownedit on Jul 24, 2017 10:51am
Hoping that the bullish flag pattern can be confirmed Tuesday/Wednesday. If my lines are correct, any break above 22.50 on decent volume should confirm a continuation up to about 25.50. That break may be retested later before finishing the move. Let's hope the board market can cooperate by staying up/sidways.