RE:Reasons for stock movementnobilis1 wrote: Nobilis has rallied nearly a buck from its lows a month ago for a number of reasons and there is no reason this trend will change until they report next month. - Forced selling has stopped, that peaked last month so the pressure is off
- The market is at record highs so investors are chasing the market looking for cheap names (NHC trades at a third of what comps trade at)
- Hated names like PHM and others have bottomed as well, the appetite is back
- The NHC chart is strong, momentum investors are chasing it
- New coverage from Canaccord is rebuilding management credibility
- M&A is close, the company is unusually quiet with management not returning calls to investors which is a positive sign
- The company will report on time next month so it is timely
- Short sellers are getting squeezed daily, its does not matter if you are long or short. "The market can stay irrational longer than you can stay solvent.”
The only major reason that seems obvious for the rally of NHC is we have seen the peak of the commodity prices like Oil. The market started sector rotation again last while from Oil to lagging sectors like Canadian Healthcare and Technology stocks during the summer time. While the former is on a recovery from this year's low the latter is going for new high, like KXS and CGI.
So jump on the train and enjoy the run. I said in my previous post that if the $3.51 level is thrust through and stay for a couple of days I will add more. Looks like it is going to get close to the next level of resistance, $4.25, which could be the target for breakout on coming strong results or new acquisitions, if it is the case as most posters here expect. Good luck and keep the momentum going.