Short Term Trading Week Starting: 3rd Apr, page-2

STTCOMP NHL, TA LONG

Novita Healthcare (NHL)
Share price : 3.7 cents
Market cap : $7.5mil ( EV $6.5mil )
SOI : 202 mil
Top 20 own more than 50 percent.

Chart starting to shape up nicely here putting in a bullish hammer on the daily on Friday with a higher low after closing the gap the previous day and finding plenty of support to also close with a hammer. I think we can probably consider those last 2 days as confirmation of a new base set for the next move up.

Brokers are all loaded up on this one from mostly 3.4 and above, so as expected when it closed the gap there was plenty of buying action on Thursday. Broker data will be interesting for this day.


Taking a look at the longer term chart for 1 year, must say it looks pretty exciting.



Broker data for the month of March



Broker data for the year to date



Conclusion

There hasn't been a whole lot of news since the company acquired TALI last year, however the broker data and the recent action suggests news is very close. I suspect there are a number of trials going on and they are about to release some data as to how this has gone ( just a hunch ) and possible future revenue streams based off these trials.

They have an excellent team behind them, some of the best in the business, this software could truly be life changing for a whole range of mental illnesses by targeting the problems at an early age in children where i suspect we develop alot of our habits and general social make up as person when we get older.

With a market cap of : $7.5 mil and an EV of roughly $6.5 mil in the bio technology sector i think its just crazy cheap. We only need to look at the market cap of the likes of RAP ( $280 mil market cap ) or even EPT ( $24 mil market cap too a far lessor extent ) to know that this is well and truly undervalued.

Bell Potter would now appear to be the number 3 share holder.

There is absolute smoke billowing from this wee micro cap, that cannot be ignored. Fundamentals, Data, Chart and Volume all point to this stock only going north now its finally gained some attention after many many months of being in the dark.

Cheers