To AR and All,
As of 11:00 AM PDT, LCAV's price per share is $3.125 (H $3.25, L 43
1/16, VOL 48,200 shares.
The current status for LCAV is as follows. A buy Signal was given on
7/1/98. Technical Analysis (TA) reveals the following: Short term
momentum indicators (MMI) are moderate (indicating moderate support for the upside price move); intermediate and long term MMI's are are
positive; short, intermediate and long term stochastics are buy
(7/1/98); On Balance Volume (OBV) is neutral (no appreciable increase of volume or positive volume trend prior to or consistent with current
upside price breakout, this indicator should develop a trend [either
upside or downside when the volume increases over the mean average (or
LTFT) of 206,434 shares/day]; Relative Strength Indicator (RSI) short
term positive.
Daily bar chart pattern analysis of LCAV. The stock has been in a
"indecision pattern" with a negative sloping tops pattern. This type of "pennant" frequently is a negative formation which has a high
probability of breaking down to lower prices; or at least if the price
does break to the upside, must be accompanied by high volume on the
upside breakout to maintain price growth. In yesterday's action we did
get a good upside price move, but with moderate volume. So expectations are that as long as the issue does not go below below $3.00 and $2.75, long term positive price moves can be expected, but at a slower pace as long as the volume remains below 206,434 shares (Least Square Fit [LSFT]). Upside price projections are $3.75 and $4.25. Longer term price objectives will be determined as price projections are realized.
The long term fundamentals of LCAV and the Excimer Eye Care sector are
very good and should show improvement in the next several quarters. Plus the fact that most of the issues are in a long term base building phase which should support higher prices in future activity.
The main fundamental problem with LCA Vision, Inc. is and has been lack of cash. With the news release of July 1, 1998 (see <http://biz.yahoo.com/bw/980701/lca_vision_1.html>), this problem
has being solved for the present. Eventually, if the expected increase
in procedures is realized, the attendant increase in cash flow should
alleviate the problem.
Harry
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