Carlos,
As promised, this my second report on LCAV.
LCAV closed @ $7.25 up 1/8 pt., vol. 53,700 shs. today (4/29/97).
As indicated in my previous post (4/29/97), this stock has been in a accumulation phase, breaking out of a trading range @ $3.50 with increased volume. The stock is in an intermediate uptrend as cofirmed by a buy signal of $6.25 on 4/25/97. However, on a short term basis, the issue has given a sell signal with today's activity (for short term traders).
The puzzeling aspect of recent chart activity did not give a pre-indication of this sudden price increase with large volume increase. In fact all of my momemtum indicators (short, intermediate, and long) have been in negative trends. My interpretation of this sudden bullish behaviour is that there must be institutional or fund interest in this stock.
Dr. Stephen N. Joffe, President and CEO of the company, and his family own over 90% of the outstanding shares of the voting stock. Consequently if there is any demand for this stock, it will go up. My last telephone conversation with Dr. Joffe in March 1996 revealed that he was continuing with his plans to open Eximer Eye Clinics in several Eastern and European locations. The main difficulty at that time was the shortage of capital to fund this effort. At that time, since the pre-split price of LCAV was $1.50/sh., LCA-Vision was arranging a credit line with a group of banks.
I think this phase of LCA-Vision's indebtedness is behind them. Any future need of capital can be supplied by selling stock at the increasing price.
I am watching a group of Eximer Eye Care Stocks, none of which have shown this sudden increase of price as LCAV. These stocks are:
BEAM, VISX, ISEE, LASE, LVCI, OHSI, and VISN. Of the group, BEAM and VISX are the manufactures of the Laser Equipment that is used in the Photorefactive Keratectomy (PRK) procedure.
Web Sites relating to LCAV are as follows:
Results of LCAV S.E.C. Edgar Search:
<http://www.sec.gov/cgi-bin/srch-edgar?0001003130>
S.E.C. Edgar Report on LCAV:
<http://www.sec.gov/Archives/edgar/data/1003130/0000906318-97-000036.txt>
LCA-Vision Web Site <http://www.lca-vision.com/lcamain.html>
LCA-Vision's 4th Qtr & Year End report, dtd Feb. 28, 1997:
<http://biz.yahoo.com/bin/jump?/bw/97/02/28/lcav_y0005_1.html+lcav+97+02>
LCA-Vion's Investor Relations: <http://www.lca-vision.com/invest.html>
To summarize my technical and fundamental analysis of LCAV,
I think that this company will continue to grow and show profit under the capable guidance and control of the present management. There are a lot of potential patients with myoptia problems to treat in the future. However, the proceedure is expensive and at present, not refundable by Medical Insurance or Medicare; so profits will be slow in coming.
Point and Figure charts indicate a potential move to $9.00/sh. and possibly $12.00. However, this will depend on the over all strength or weakness of the "market". Again this potential upward price movement could take time and will depend on good market conditions.
It should noted that I am not a stock broker or a licenced investment advisor. The opionions stated above are those of the writer, with no guarantees given or implied.
With Regards,
Harry Lowe |
