Assure Holdings Corp. (IOM:TSX.V; ARHH:OTCQB) is a stock that we were involved with about a year ago, but we got stopped out ahead of it suddenly plunging, as can be seen on its 2-year chart below. It plunged dead ahead of being suspended from trading due to irregularities which, as I understand it, involved the proprietor's money being mixed up with the company's money. The problems got straightened out and the stock resumed trading in August. All the while, however, the company has continued to be very successful and to make more and more money, which means that the stock is now undervalued.
On the latest 6-month chart we can see in detail all the action in the stock since it resumed trading. After an initial surge it dropped back at a decelerating rate, probably due to liquidation by investors who soured on the stock after being caught by the plunge, and has stabilized roughly in the vicinity of the support level shown. It looks like it is turning up and preparing to break out upside from the curved channel shown, a contention which is supported by the positive volume pattern and volume indicators, and should have a window of opportunity to do this before the stock market crashes, and here we should remember that even during general bear markets some stocks go up, if the companies are making money. Results are due out soon, and may well be the trigger for an upside breakout.
The conclusion is that Assure Holdings is rated a buy here and especially on any near-term minor dip back towards support in the C$1.95 area for an upside breakout from the curved channel shown on our chart, which should lead to significant gains. Point for a stop is C$1.89. There are 35.5 million shares in issue.
Assure Holdings website.
Assure Holdings Corp, IOM.V, ARHH on OTC, closed at C$2.25, $1.64 on 16th November 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.
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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.
