Good Morning!
Highlight the biggest winners of 2015 and Sanomedics Inc. (SIMH) is definitely in the top tier. Now it’s time for a VICTORY lap!
As you recall from when we traded SIMH into a 270% rally, the company is a medical device holding group currently “between assets.”
Don’t get me wrong: even without a lot of news on the wire, the chart has been frisky enough to score 3 digits and make us all happy.
But when SIMH finally makes its next move, we could see the really big bang! And that’s the potential that brings me back here today.
Start the story with that oversold situation screaming on the SIMH chart:
That should remind you how sweet the big win we scored a few weeks ago felt . . . or how sad you were to give the action a pass!
After all, 270% on no news at all is extraordinary. Even the follow-up “shudder” up 140% felt REALLY nice.
Remember, SIMH operates by making acquisitions and selling the most promising subsidiaries for cash.
But they unwound the assets and the latest buy fell through. They need to buy something NEW now to avoid shell status!
The last time they sold an operating subsidiary and announced a new acquisition, the stock soared a full 60% in a matter of DAYS.
Maybe we get the next announcement today, maybe we just have to “settle” for another round of oversold relief.
-
Besides, SIMH was already working a hotter angle: no-contact thermometers, which it just sold to another healthcare group for $250,000 in cash and another $2.25 million down the road.
Bottom Line: SIMH is a known winner even though the BIG payout of that acquisition announcement has remained elusive.
No news has meant big fun for us. Imagine what happens when SIMH actually starts making headlines again!
Until that moment, there’s a whole lot of cash at this table trading at a huge discount to market capitalization.
You do the math! No wonder SIMH is flashing “oversold” like it was the last time we reaped the rally on this chart!
Now let’s get to work.
Sincerely,
Michael Reef
yourstockguy@gmail.com
