NHMCF strong performance over the past week was VERY encouraging (in the midst of a horrendous overall market)
In addition to its improving stock price the last several days, other developments would suggest nhmcf will do very well in the near/intermediate term.
1-The company recent press release regarding its estimated 1998 and 1999 earnings was quite impressive. They must be VERY confident in their ability to meet or beat these estimates. Knowing how Wall Street punishes those who do not make their estimates and rewards those who do make their estimated earnings, nhmcf must be pretty comfortable with these numbers. If that is the case, imagine where the stock price would be in 1-2 years (which explains J. Rreeman BUY rating and target of US$10 in 9-12 months)
2-The company has recently been very active in their news releases (announcements, open house, etc), which suggests to me they are PR savvy (as evident by how hard they try to reach out to small investors) and are working hard to increase their visibility to Wall Street. This will definitely help their share price.
3-As risk-averse points out in the latest post, the end of 1997 is almost here and the company will want to keep their share price up to prevent tax-related selling, end the year on a good note, etc.More announcements with good news would definitely raise the share price. Furthemore, once price gets to around $5, activity will increase (Margins, Brokerage house/analyst coverage and activities tend to increase at this price level)
4-I also noticed that every time the share price dropped the last couple of days, someone would step up and purchase more shares, bringing the price back up. Very encouraging, indeed.
5-The large short position would guarantee an extra increase in share price once more good news are announced!
In summary, to all longs, be patient...good days are coming!! |
