Premier Health Group Inc. (PHGI:CSE; PHGRF:OTCQB; 6PH:FSE) is related to Reliq Health Technologies Inc. (RHT:TSX.V; RQHTF:OTCQB) that we recently looked at, because Premier announced that it has selected Reliq Health Technologies as its exclusive technology partner. Reliq will be providing Premier's subsidiary, HealthVue, primary care clinics with a HealthVue-branded telemedicine, remote monitoring and AI solution for its clinical staff and more than 100,000 active patients.
Premier Health Group announced this month that as a part of its expansion plans it will be entering the Pharmacy market "via acquisition and/or launching a new Canada based pharmacy in H1-2019." With Premier's acquisition of HealthVue Medical Clinics in August, this could be the next phase of growth for the company. The company said that it expects to provide additional updates on acquisitions in Q4-18 and Q1-19 so this could be one of the near term events to consider when looking at this stock. NEWSFLASH: the company on Monday announced a binding LOI (Letter Of Intent) to acquire an operating pharmacy in Canada.
The chart for Premier Health looks strong and it appears to be impervious to the vicissitudes of the broad market, for as we can see on its latest chart, it was unmoved by last week’s steep drop in the stock market indices. Premier has started trading on the U.S. OTC market under the code PHGRF where it trades in good volumes, but due to the lack of history on this market, it is more practical for us to look at the chart for the Canadian traded stock, although it may certainly be bought on the U.S. market.
Premier is clearly in a bull market and it has risen well in recent months, breaking clear above a now rising 180-day moving average. The reason for using a 180-day moving average instead of our customary 200-day is due to the 180-day having now turned higher, whereas the 200-day hasn't but soon will, because the high early values used in its construction, which occurred before the steep drop back in the Spring on tiny volume, will soon drop out—because they already have on the 180-day, this is why the 180-day average has already turned up.
The pattern that has developed following the sharp rise late in September looks like a bull Pennant or Triangle, with the stock moving sideways within this formation for about nine weeks now, which is considered to be a consolidation pattern that will lead to renewed advance rather than some sort of top area. The reasons that it is considered to be a consolidation pattern are the increasingly bullishly aligned moving averages, and the positive volume pattern and volume indicators, particularly the On-balance Volume line, which is forging ahead to new highs. With the 50-day moving average having completely caught up with the price, and the earlier overbought condition having neutralized, Premier is considered to be ready to commence a new upleg, and is rated an immediate buy here. There are 61 million shares in issue and, as mentioned above, the stock trades in healthy volumes on the U.S. OTC market.
Chart courtesy of stockwatch.com
Premier Health has been trading on the U.S. OTC market for only about seven weeks to date, and for completeness the chart for the U.S. traded stock is shown below. As we can see there is insufficient history for this chart to be of any technical use, which is why we looked at the chart for the Canadian traded stock.
Premier Health Group website.
Premier Health Group Inc, PHGI on CSX, PHGRF on OTC, closed at C$0.82, $0.588 on 7th December 18.
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.
