PNV - Chart, page-14645

With SP double topping at $2.18 then falling to form lower lows there was a high probability of SP drop which played out yesterday.

61.8% Fib retrace of the wave indicated $1.71 gap fill price, cup handle 1/3 retrace & 50EMA support were also in the same area.

Most likely shorters took advantage yesterday & caused SP to undershoot. Insto's would also have reduced positions prior to Powell speech. Weak markets in US overnight so there will be more selling for a few days when ASX opens.

Now looking for 200EMA to act as support around $1.55. SP had a good run from 86.5c to 225c intraday peak = x2.6.

$1.55 x 2.6 = $4.03 near prior peak where there should be a lot of resistance. The multiple of the wave tends to repeat on many occasions. There is overhead resistance there too.

If it's going to form a handle now the cup lips are at around 210c - 90c bottom = 120c x 1/3-1/2 = 40-60c.

210c - 40-60c = 170c was near gap fill to 150c is near the 200EMA support. RSI now becoming oversold.

Would have been ideal to retrace to $1.71 gap fill zone but has undershot. Great buying around $1.50 ish levels if it gets there which will enable PNV to pick up more liquidity for the next push higher.

510(k) approval will most likely be catalyst for next push higher along with quarterly update in October.

The numbers were very good in the report. Breaking it down by quarters it works out as follows:

Q1 FY22 - $6.14M
Q2 FY22 - $8.06M
Q3 FY22 - $12.26M
Q4 FY22 - $15.44M x 4 = $61.76M run rate.
TOTAL = $41.9M

H2 FY22 $27.7M / H1 FY22 $14.2M = +95% HOH growth.

Revenue is near doubling every 6 months.

Numbers could have been highlighted better in the report. Needed to highlight the huge HOH growth due to hospitals being open unlike covid lockdowns.

At current HOH growth rate of 95% H1 FY23 revenue will be $54M & H2 FY23 revenue will be $105.3M.

Appears PNV will have circa $150M+ revenue for FY23 based on current growth rate.

This will be bought aggressively once it bottoms as it's now $1,085M MC / $150M FY23e = x7.2 for patented healthcare sector cashflow.

Once the dust settles will double up here around golden cross $1.50ish MA's price if lucky.

Enjoy the weekend.