Sonic Healthcare - Ridiculous Growth Ahead or ? .
Fundamentally and technically SHL looks a good stock to add to the portfolio. Currently $24 up side of 10% + to $27+. Entry at 200 EMA OR FIB levels after going ex dividend.
On the fundamental side of the equation the latest report was very strong. CEO Colin Goldschmidt said growth is strong particularly in the USA: "I think Sonic is well placed right now for strong growth into the future," "I am especially proud that the revenue of our US business grew 8 per cent organically in the half, which we believe is well above market, driven in part by the success of our hospital laboratory joint ventures and early wins from our billing enhancement system,". CEO'S recent comments also touched on the magnitude of the USA opportunity with no player having more than 5% of the pathology market compared to Australia 76% of the market owned by 2 large players. This makes the USA pathology market a ripe picking ground for SHL acquisitions, said Colin Goldschmidt.
On the Technical side volume is strong. The 50 EMA is finally about to cross above the 200 EMA. Both are turning up with higher highs and higher lows being achieved in 2019. Current price is just above Fibonacci levels from recent low. MACD suggests we may see lower prices, however, this is likely due to SHL just going ex dividend. A good entry may be at the 200EMA or at on of the major Fibonacci retracement levels 50 or 61.8.
Conclusion: I see SHL's fundamentals & technical outlook perfectly aligning. I dont see much downside risk. As a result, IMO, SHL is a high probabilty of testing the high point seen in 2018 ($27) later in 2019.
Let me know what you think of SHL?
On the fundamental side of the equation the latest report was very strong. CEO Colin Goldschmidt said growth is strong particularly in the USA: "I think Sonic is well placed right now for strong growth into the future," "I am especially proud that the revenue of our US business grew 8 per cent organically in the half, which we believe is well above market, driven in part by the success of our hospital laboratory joint ventures and early wins from our billing enhancement system,". CEO'S recent comments also touched on the magnitude of the USA opportunity with no player having more than 5% of the pathology market compared to Australia 76% of the market owned by 2 large players. This makes the USA pathology market a ripe picking ground for SHL acquisitions, said Colin Goldschmidt.
On the Technical side volume is strong. The 50 EMA is finally about to cross above the 200 EMA. Both are turning up with higher highs and higher lows being achieved in 2019. Current price is just above Fibonacci levels from recent low. MACD suggests we may see lower prices, however, this is likely due to SHL just going ex dividend. A good entry may be at the 200EMA or at on of the major Fibonacci retracement levels 50 or 61.8.
Conclusion: I see SHL's fundamentals & technical outlook perfectly aligning. I dont see much downside risk. As a result, IMO, SHL is a high probabilty of testing the high point seen in 2018 ($27) later in 2019.
Let me know what you think of SHL?
Note
Ascending triangle forming. Looks ripe to break the major resistanceNote
Target has been reached but at this point i'm more than happy to hold on the back of extremely strong fundamentals. moving stop loss up to break even.Note
Break even $24.38Note
SHL is still trending nicely & continues to be technically very bullish. Yesterdays positive CEO presentation - full year results to June 30, 2019 was well received by the market, & as result SHL has shot up approx 7 - 8%. Once again, on the back of strong fundamentals I'll continue to ride this one. Stop loss has been moved up to $27.50.Note
& Keeps on going
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.