Psychemedics PMD micro-cap Due For Bullish Reversal Cycle
5% Dividend Yield, with 100% upside Share Potential
The world’s largest provider of hair testing for drugs of abuse
announced financial results for the first quarter ended March 31, 2023
And the declaration of a cash dividend of $0.07 per share to be paid on June 8, 2023, to shareholders of record as of May 25, 2023
The Company’s revenue for the quarter ended March 31, 2023, was $5.9 million versus $6.5 million for the quarter ended March 31, 2022, a decrease of 10%. Net loss for the quarter ended March 31, 2023, was $(384,000) or $(0.07) per diluted share, versus net income of $39,000 or $0.01 per diluted share, for the comparable period last year.
Psychemedics Corporation is a United States corporation which provides patented, FDA-cleared, CAP certified clinical laboratory services for the detection of drugs of abuse. The company's corporate headquarters are located in Acton, Massachusetts and its laboratory operations are located in Culver City, California. Wikipedia
Patents
AQMS, next Highflyer like NIO Part 2In that second Part i will highlight the similarities between NIO and AQMS.
Compare the two ellipses with each other and you can see how they are equal and see the steep increase Nio had.
The increase from the low at 2.16 USD was 29.5 fold (!!!) up to the Top.
Taking that into account for Aqua Metals would mean a Top around 36 USD.
The fundamental drivers behind such a massive increase could be new contracts with their lead recycling patents, overgenerating income and a final solution for their ongoing research on Lithium-Ion battery recycling, especially with contracts in the car industry.
As always only my Opinion and no trade advice.
Referring to my last Chart on AQMS
Aqua Metals, the next Highflyer like NIOAqua Metals had a superior run, after the Crash with the burned Lead refining factory they got lots of support from their insurance company to build up again
and to come along with their patent system on their 99,99% lead recycling patent.
Got contracts in India via Patent and now acquired a new company with their Patent to recycle Lithium batteries/akkus aswell.
The prospected market outlook in the next 3 years is massive as more and more EV get on the streets and their batteries need to get recycled. The market is somewhere in the 25 Billions as i remember, will bring along detailled figures here.
So far the fundametals are amazing, let's get over to the TA.
AQMS made a pullback to the daily 21 EMA, which was the best entry if not invested already. So far we still can retest another Fibos lower around the 4.20 - 2.70 USD, true BUY-INNS.
The daily Bullish cross on the MACD will bring us up very fast coming week or 2.
Conclusion - Aqua Metals is a rising star with a unique selling point, their lead recycling and now adopting to get the lithium recycling aswell, which comes to 2 unique selling points ;)
A clear growth Share.
Trade safe and as always, this is just my own opinion and no trading advice.
Yours coinwide
FLIR, somewhat undervalued technology stock on trend line watchFLIR Systems makes high-tech imaging systems. The stock has been selling off since its last earnings report, despite the fact that earnings and guidance both beat analyst estimates. Perhaps the selloff was because the company failed to issue forward guidance, or perhaps it was because free cash flow took an 18% hit last quarter and FLIR announced a 2.5% debt issuance in July. Regardless, FLIR now looks cheap, and sentiment has been improving lately.
Valuation
I expect that FLIR's dividend will yield 1.9% in the next 12 months. Its PEG is about 17, so not great, but not terrible. PSG ratio is 2.72. Again, not great, but not terrible. The real case for the stock being undervalued is that it's near the bottom of its three-year valuation range in P/E, P/S, and P/D terms. Despite the decrease in free cash flow, the company has a 77/100 financial health score from S&P Global. S&P Global also rates the stock 72/100 for its valuation, meaning the stock is solidly, but not extremely, undervalued. One reason I like FLIR is its patent portfolio. Patents granted are a leading indicator of earnings growth, and over the last three years, FLIR has been granted and average of 16 patents per billion dollars of current market cap. That very respectable number puts its patents-to-market cap ratio in the same league as Intel, which ranked 4th in the nation for total patents granted in 2019. In short, FLIR is a leading innovator for its market cap size.
Sentiment and Technicals
Analysts have been steadily upgrading FLIR, and it currently has an 8/10 Equity Starmine Summary Score. Options traders are quite bullish on the stock, with a put/call ratio of just 0.29. The technicals on FLIR are still negative, but improved slightly today to "sell" from yesterday's "strong sell" reading on both the daily and weekly charts. I'll be watching for a bullish cross of the trend line FLIR has formed since February as my buying signal.
HPE sentiment is changingLast week I put up a post titled "HPE sentiment may change for the better," but the post got blocked because I had a link in there that the mods felt constituted advertising. Well, HPE sentiment has begun to change for the better, as I predicted, so I think this is worth an update and repost with the offending link removed.
I track metrics of both value and sentiment, and I usually only buy a stock if measures of both value and sentiment are aligned. I've noticed, though, that there's more money to be made if you can pick a stock with good value and poor sentiment that's about to improve. HPE may be a candidate for just such a positive change in sentiment.
Value
I've struggled with how to calculate PEG ratios post-Covid. I generally take my earnings growth rate from an approximately five-year linear regression line (three years past actuals, two years future estimates). But when you've got a black swan event right in the middle of your time series, what do you do with that? Do you use a continuous function that makes the growth rate look negative? Or do you use a piecewise function that makes it look positive? I've settled on taking the average of the two. So, keep that in mind when I tell you that I've calculated HPE's PEG ratio at 3.39 and PSG ratio at 0.36. I typically multiply the two values together to get a composite PEG*PSG ratio, in this case 1.23. Of the stocks I track, the only one with a better PEG*PSG than this is $HPQ.
HPE is also trading near the bottom of its 3-year valuation range in terms of forward P/E and forward P/S. It has generally traded at about .75 forward P/S. Right now it's about .47. Implicitly, there's about 59% upside from here. Do the same calculation with forward P/E, and the numbers imply about 40% upside from here.
Another thing I really like about HPE is how innovative it is. Over the last three years, HPE has averaged 50 patents granted per billion dollars of current market cap, making it more innovative for its size than any other company I watch save IBM. Throw in the fact that HPE is expected to pay 4.8% in dividends over the next 12 months, and you've got a stock that combines both shareholder returns and growth potential. That's rare.
Sentiment
HPE's Equity Starmine Summary Score improved from 1.6/10 to 3.7/10 in the last 24 hours, meaning that analysts are growing more positive on the stock. The upgrade caused a nice spike in the stock price today.
The sentiment change comes after HPE reported 3Q results and not only beat analyst expectations on earnings and revenue, but also beat analyst expectations on 4Q guidance. Analysts sharply increased earnings estimates for the next couple years after the earnings report. Perhaps even more importantly, HPE dramatically improved its financial health from the year-ago quarter. From the conference call: "Our Q3 free cash flow of $924 million was up $276 million year over year, driven by a record cash flow from operations as a result of our improved execution this quarter. . . . We generated cash flow from operations of approximately $1.5 billion. This is the highest level for the past 11 quarters, as we improved our operational execution." The company does expect cash flow to be sequentially lower next quarter due to restructuring, but the company is still in stellar shape financially, with an $8.5 billion cash reserve.
Given HPE's strong results, I expect continued analyst upgrades. And I'm not alone in thinking so; HPE now has a bullish put/call ratio of 0.51.
Technicals
HPE's technicals are neutral at the moment, with the stock in a triangle. A couple ways to play it would be to buy near the bottom of the triangle or wait for an upside breakout. I do think there's a good chance HPE will make an upside breakout in the coming weeks, overall market conditions permitting.
MARA knocked back down to $2 MARA knocked back down to $2
The run up to the election will crush the stock market.
but
When earnings are due it will fall back in favor.
Make sure you set ow buy orders around the $2 mark
Nokia remains one of my favorite long-term technology playsI've been buying long-term (2022) calls on Nokia, and they're performing very well this past week. The good news for Nokia has kept rolling in throughout this coronavirus downturn, and Nokia announced today that it has declared a total of 3,000 patents related to 5g. Last year it looked like Nokia was falling behind in the 5g race, but ever since it suspended its dividend to free up cash flow for R&D, it has been fast making itself a 5g leader. Along with BIDU, NOK is one of my favorite long-term tech plays due to low valuation and a large number of hot new technology patents going into product development that should pay off long-term. I will buy more calls on the dips.
Energous wireless power using nanocrystalsWATT has Intellectual Property for high growth, sales and issue is cash flow and time to profitability, as well competitive players which a couple exist.
Watch for weekly candles, MACD cross (blue over orange), and CCI crossing 0. Volume would also be a good signal on this one for cash flow.
Mocom Technology Holdings - Galium fishingWhat's not to love. Buying into telecom/cellular, defense tech, big data processing with equal sectors. Self-driving cars will need,
but market still extremely small. 5 yrs. from now, not so much. Buy and hold.
Won patent suit in 2017 to protect GaN chips, which run 80-100x faster than silicone chips and they can make them for same cost.
STM needed to partner with them to prevent more patent litigation, so STM is now their distributor and making MTSI chips as well.
Fast chips will allow 5G cybersecurity improvements for all 3 arena's as newer chip technology.
Technical view: Below 786 fibretracement from recent drop after some BIG DOG $$$ got scared from US-CH trade wars. This is
almost as good as NVDA and AMD before their recent runs. Would love to see a double bottom here....
You're welcome on this one. Been looking for GaAs, GaN chip manuf. with patents and new partnership gives this. No seriously,
you're welcome. longbuylongsell @MarxBabu add Woody's CCI here on 4h chart with Fib Retracement (scroll back).
