Leroux

Earning reversal play LONG DOC

شراء
Leroux تم تحديثه   
TSXV:DOC   CLOUDMD SOFTWARE & SERVICES INC
1 We are in a monthly support zone (We are long)

2 On the weelky we reverse to the upside but we did not rebounce from the actual low and the stock fall lower.

3 Divergence on the weekly Low low

4 We are testing the 1.618 FIB level of the previous weekly rally (Reversal on daily)

5 + Logic volume to suggest a rebounce from the 1.681 FIB level.




تعليق:
Long still valide
تم فتح الصفقة:

P/B 0.37 = Cheap asset

Net margin to -13.67% to -109.85% = don't panic, net margin drop for multiple reason like buying asset for the US expansion.

Debt to Equity at 0.16 = except if a catastrophe happen, DOC will have enough liquidity to continue activity.

Price to Free Cash flow -75 to -2.90 = (-75/-2.9 = 25.8x) = you pay 25.8x cheaper the future free cash flow that DOC will produce. It mean that this price is fair to buy.


After the last earning, the volume drop drastically and the volatility increase.

Systemic risk didn't help either and market drop hard.

Fewer people are selling share (Drop in volume) and indicate that the momentum could change.

On a macro perspective, everything going as expected. Tele Health will increase productivity in the health sector, give medicals services to more people with more reasonable fee and public institution are now seeking to modernize the current system. Even as we enter in a recession that nobody know how long will it last, Tele health company will have "friendly" environment and will growth despite a recession.
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