AMEX:RHE   Regional Health Properties, Inc
RHE is a secret. Many yesterday watched in confusion as the technical rise of 848% in a matter of minutes. Then the SEC-initiated technical trading after the shutdown collapse. Let's start at the beginning. On Dec. 10, I indicated in my analysis that a pulse wave rise is expected. The practice has developed on penny exchanges in recent years that it has been possible to trade well by shorting penny companies. Lots of short positions open. Did anyone notice that the number of shares issued by the company was 1.6 million? And the trade volume was close to 14 million? Apparently, a lot of equity leveraged short positions were involved in trading. Therefore, there were plenty of stop losses during the pulse rise. It all lasted until the SEC intervened. But what can come after the bloody past?
If we look at the fair value of the RHE stock (1 year target price) the table shows the level of usd 78. From the current level of 2300% increase. What causes this high rating? Primarily the 1.6 million shares issued mentioned in my analysis, as well as the year-on-year declining debt. Also, the almost constant $ 150 million in revenue is not negligible.
They all tell me that the “RHE secret” isn’t really a secret, as apparently the company may see a steadily rising share price in the coming years. Therefore, it is time to take the fair value of the company’s shares seriously and build longer-term long positions.
Comment: The RHE update graph shows an orange wave axis. I hypothesize that the accumulation wave structure may develop symmetrically in the future. The red square below the area is the spike area where the price movement can stab. The RHE can then be amplified again above the wave axis. The three dashed purple lines with HV indicate High volume trading levels. These can be stable support locations according to the rules.


Is it more than a dead cat bounce?
meszaros Captain_Walker
@Captain_Walker, The question is interesting. :) My opinion is that the coming period will bring significant changes in the penny stock market as well. The continued weakening of the dollar, fears of inflation and the slowdown in the covid virus are driving investors into stock markets. Not only can the SP500 rise tremendously, but many penny companies can. RHE is practically a health REIT. With fixed income, steadily declining debt, and last but not least, an extremely low number of publicly traded shares (1.6 million) The fair value of the company’s stock is very high (78usd). With these in mind, I am not expecting a “dead cat bounce” phenomenon, but a steady rise in stable stock prices over several years.
+1 Reply
@meszaros, Thanks for your full answer. That's really quite informed. 👍🙏
Useful information. thanks
meszaros AR_kooshani
@AR_kooshani, Thank you very much.