The fundamental story for H-Source Holdings Ltd. (HSI:TSX.V; HSCHF:OTCQB) in a nutshell is as follows:
A lot of new medical equipment and supplies for hospitals, some of it very expensive, ends up never being used, for various reasons. What H-Source does is to find buyers for this stuff, getting much better prices for it than would be obtained if it was in effect sold onto a secondhand market. The company appears to be doing increasingly well at this too.
On the 1-year chart we can see that its stock appears to be shaping up to make significant gains soon. In recent weeks it has battling resistance at the 17–18 cent level as it completes what is believed to be the Right Shoulder of an upsloping Head-and-Shoulders bottom, with improvement in its technical condition symbolized by the bullish moving average cross—the 50-day rising up through the 200-day—the latter flattening in readiness for turning up. Upside volume has started to build in the past few days, which still looks small thanks to the freak volume on a day last December that has resulted in an improvement in volume indicators after a long period of weakness.
On the 3-year chart we can see the origin of the resistance at the 17–18 level, which results from a considerable volume of trading just above this level, mainly during 2017. Once it breaks above this level, it should make a run at the next significant resistance level in the C$0.24–C$0.255 area. H-Source trades in reasonable volumes on the US OTC market. There are 63 million shares in issue.
H-Source Holdings website.
H-Source Holdings HSI.TSX.V (Canada), HSCHF on OTC, trading at C$0.17, $0.14 at 12.00 noon on 24th July 2018.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.
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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.
