"In the end Liberator Medical Holdings, Inc. (OTCBB:LBMH, LBMH message board) failed to reach the $2 mark. The stock met strong resistance at $1.90 which was its high of day for 4 out of the last 7 sessions and yesterday it finally started crashing. Investors must have decided to cash in at the current overpriced levels which are higher than anything visited by the ticker for the past 3 years. Now it is sitting at $1.70, still a substantial sum which may prompt further corrections. On the other hand they have proved that they are capable of supporting the positive movement of their stock. In a stark contrast to almost all the other pennystock medical companies, LBMH have a stable balance sheet. Looking at the latest quarterly report we found:
$7 million cash $20 million total current assets $6 million total current liabilities $16 million revenues $1.4 million net income The company has impressive cash reserves, generates revenues and is actually profitable. The current assets not only triple current liabilities but are also bigger than the sum of total liabilities by 5 million. LBMH aren't relying solely on their financials though. In order to create shareholder value the company has paid dividends on two separate occasions and announced the buyback of 1 million of its common shares. This news, made public on June 14, was precisely the spark that was needed for the stock to run wild up the chart.
As an added bonus LBMH have never been pumped. Even during the recent positive performance no newsletters decided to latch themselves to the stock. We oftentimes see even the more influential pumpers touting a rising stock in order to improve their image. With the pullback being somewhat expected it remains unclear how sharp the correction will be."
Bought 2 Canadian small cap, dividend paying energy stocks today. Held both for a couple years and am down about 30%, but the large caps have been moving up with oil and the small caps have been pretty much ignored, so there should be a catchup trade, plus better valuation support.
We were talking a few days ago about fundamental style investing versus chart style. Here's some proof that fundamental style (low p/e, p/b, etc.) works well generating reasonable returns even during the long term Japanese bear market:
"Four out of five value investing strategies actually rewarded investors with positive returns in the bear market that spanned two decades from 1990 to 2011, turning $1 into $4.77, $4.25, $17.17, and $10.91, implying profits of 377 percent, 325 percent, 1617 percent, and 991 percent respectively, while the stock market plunged 62.21 percent after reaching its peak in January 1990. In addition, every one of these value investing strategies continued to generate positive returns between the pre-global financial crisis peak in 2007 and December 2011."
This is the equivalent to saying it's a stock-picker's market, basically. Charts can help to find entries on these I think, such as Mark's recent FMD entry for example.
Closed SMH for a minor gain, but my best trade turned out to be an 'ancillary' position in TXN. Everything off the table by close for a one-day total of $1270.
Perks my interest. Down 20% today
ReplyDelete"In the end Liberator Medical Holdings, Inc. (OTCBB:LBMH, LBMH message board) failed to reach the $2 mark. The stock met strong resistance at $1.90 which was its high of day for 4 out of the last 7 sessions and yesterday it finally started crashing. Investors must have decided to cash in at the current overpriced levels which are higher than anything visited by the ticker for the past 3 years. Now it is sitting at $1.70, still a substantial sum which may prompt further corrections.
On the other hand they have proved that they are capable of supporting the positive movement of their stock. In a stark contrast to almost all the other pennystock medical companies, LBMH have a stable balance sheet. Looking at the latest quarterly report we found:
$7 million cash
$20 million total current assets
$6 million total current liabilities
$16 million revenues
$1.4 million net income
The company has impressive cash reserves, generates revenues and is actually profitable. The current assets not only triple current liabilities but are also bigger than the sum of total liabilities by 5 million. LBMH aren't relying solely on their financials though. In order to create shareholder value the company has paid dividends on two separate occasions and announced the buyback of 1 million of its common shares. This news, made public on June 14, was precisely the spark that was needed for the stock to run wild up the chart.
As an added bonus LBMH have never been pumped. Even during the recent positive performance no newsletters decided to latch themselves to the stock. We oftentimes see even the more influential pumpers touting a rising stock in order to improve their image. With the pullback being somewhat expected it remains unclear how sharp the correction will be."
LBMH - Interesting find. I'm not sure it's accurate to say this one's never been pumped but I do constantly see their(I believe) advertisements on TV.
DeleteTheir business should be fairly robust, I'd think.
P/E is 17, so yeah I guess it was overbought.
Bought 2 Canadian small cap, dividend paying energy stocks today. Held both for a couple years and am down about 30%, but the large caps have been moving up with oil and the small caps have been pretty much ignored, so there should be a catchup trade, plus better valuation support.
ReplyDeleteAlright, I can't stand sitting around the house so going for a ski around the lake.
ReplyDeleteGood luck guys, keep FMD heading higher, please!
We were talking a few days ago about fundamental style investing versus chart style. Here's some proof that fundamental style (low p/e, p/b, etc.) works well generating reasonable returns even during the long term Japanese bear market:
ReplyDelete"Four out of five value investing strategies actually rewarded investors with positive returns in the bear market that spanned two decades from 1990 to 2011, turning $1 into $4.77, $4.25, $17.17, and $10.91, implying profits of 377 percent, 325 percent, 1617 percent, and 991 percent respectively, while the stock market plunged 62.21 percent after reaching its peak in January 1990. In addition, every one of these value investing strategies continued to generate positive returns between the pre-global financial crisis peak in 2007 and December 2011."
http://greenbackd.com/2013/07/23/has-value-investing-worked-in-japans-long-bear-market-1990-to-2011/
This is the equivalent to saying it's a stock-picker's market, basically. Charts can help to find entries on these I think, such as Mark's recent FMD entry for example.
DeleteYep, charts can work too. But I think this just shows that looking at value can help create a winning strategy in pretty much any market.
DeleteClosed SMH for a minor gain, but my best trade turned out to be an 'ancillary' position in TXN. Everything off the table by close for a one-day total of $1270.
ReplyDeleteGASL - Will this one break out this time?
ReplyDeleteCaterpillar Inc: Outlook reduced again – Mining deteriorates.
ReplyDeleteYes, I see that.
DeleteFeels toppy here
ReplyDeleteFake, like breasts full of silicone?
DeleteSilver - Seems to be testing support here around $20.25
ReplyDeleteSVM vs AUMN - One criteria/scenario I'm thinking of in terms of a possible PM mining sector recovery involves AUMN trading back above SVM once again.
That is, assuming AUMN remains in the running.
WLT - Slashed dividend, eh? Duh, didn't see that one coming............
ReplyDeleteAdded back the FMD 1/5 position in trading port at 1.74
ReplyDeletenew post
ReplyDelete