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Strong Health Stock 'Ready to Commence New Upleg'

Streetwise Reports
0 Comments|December 14, 2018

Technical analyst Clive Maund analyzes a rapidly expanding company with medical clinics in British Columbia that is using advanced technology and AI.

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Premier Health Group Inc. (PHGI:CSE; PHGRF:OTCQB; 6PH:FSE) is related to Reliq Health Technologies Inc. (RHT:TSX.V; RQHTF:OTCQB) that we recently looked at, because Premier announced that it has selected Reliq Health Technologies as its exclusive technology partner. Reliq will be providing Premier's subsidiary, HealthVue, primary care clinics with a HealthVue-branded telemedicine, remote monitoring and AI solution for its clinical staff and more than 100,000 active patients.

Premier Health Group announced this month that as a part of its expansion plans it will be entering the Pharmacy market "via acquisition and/or launching a new Canada based pharmacy in H1-2019." With Premier's acquisition of HealthVue Medical Clinics in August, this could be the next phase of growth for the company. The company said that it expects to provide additional updates on acquisitions in Q4-18 and Q1-19 so this could be one of the near term events to consider when looking at this stock. NEWSFLASH: the company on Monday announced a binding LOI (Letter Of Intent) to acquire an operating pharmacy in Canada.

The chart for Premier Health looks strong and it appears to be impervious to the vicissitudes of the broad market, for as we can see on its latest chart, it was unmoved by last week’s steep drop in the stock market indices. Premier has started trading on the U.S. OTC market under the code PHGRF where it trades in good volumes, but due to the lack of history on this market, it is more practical for us to look at the chart for the Canadian traded stock, although it may certainly be bought on the U.S. market.

Premier is clearly in a bull market and it has risen well in recent months, breaking clear above a now rising 180-day moving average. The reason for using a 180-day moving average instead of our customary 200-day is due to the 180-day having now turned higher, whereas the 200-day hasn't but soon will, because the high early values used in its construction, which occurred before the steep drop back in the Spring on tiny volume, will soon drop out—because they already have on the 180-day, this is why the 180-day average has already turned up.

The pattern that has developed following the sharp rise late in September looks like a bull Pennant or Triangle, with the stock moving sideways within this formation for about nine weeks now, which is considered to be a consolidation pattern that will lead to renewed advance rather than some sort of top area. The reasons that it is considered to be a consolidation pattern are the increasingly bullishly aligned moving averages, and the positive volume pattern and volume indicators, particularly the On-balance Volume line, which is forging ahead to new highs. With the 50-day moving average having completely caught up with the price, and the earlier overbought condition having neutralized, Premier is considered to be ready to commence a new upleg, and is rated an immediate buy here. There are 61 million shares in issue and, as mentioned above, the stock trades in healthy volumes on the U.S. OTC market.

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Chart courtesy of stockwatch.com

Premier Health has been trading on the U.S. OTC market for only about seven weeks to date, and for completeness the chart for the U.S. traded stock is shown below. As we can see there is insufficient history for this chart to be of any technical use, which is why we looked at the chart for the Canadian traded stock.

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Premier Health Group website.

Premier Health Group Inc, PHGI on CSX, PHGRF on OTC, closed at C$0.82, $0.588 on 7th December 18.

 

Disclosure:
1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Premier Health Inc. Please click here for more information.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Premier Health Inc., a company mentioned in this article.

Charts provided by the author.

CliveMaund.com Disclosure:
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

 

 

 


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