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Wednesday, March 09, 2016 12:18:14 PM
SHOM Volume! + --->
Technical:
50 Day moving average began a new upward trend in Dec 2015. It occurred shortly before a catalyst that solidified the new upward trend.
On January 11, a pull back occurred lasting a few days, resulting in the 13EMA bouncing off the 50 day as the price action gained traction again.
Throughout the uptrend, the 50 day appears to be providing continuing support.
On February 10, the 50 day upward trend and the falling 200 day resulted in a Golden Cross, further confirming the uptrend's strength.
Now, in March, a new catalyst has arrived, and signaled a pending catalyst that could permanently send the price to higher levels and stay there.
Catalysts:
December 16, 2015 - Southern Home Medical Aggressively Pursing Merger/Acquisition Targets -
http://www.otcmarkets.com/stock/SHOM/news/Southern-Home-Medical-Aggressively-Pursing-Merger-Acquisition-Targets?id=121610&b=y
GREER, SC--(Marketwired - Dec 16, 2015) - Southern Home Medical, Inc. (OTC PINK: SHOM), a holding company providing healthcare services, staffing and medical equipment to medical institutions, facilities and in-home patients, announced today their intention to pursue merger and/or acquisition targets in the medical industry.
"Our position for growth and acquisition has never been better than right now," stated Jeffrey L. Sarvis, President & CEO of Southern Home Medical, Inc. "We are generating well over one million in annual revenue with little to no debt, other than daily operations, and we are cash flowing nicely. The timing is right for a candidate who is a proven operator and will blend seamlessly with the businesses that we currently operate."
Southern Home Medical owns and operates ApneaRx, a medical equipment provider for both in-home patients and medical facilities. Southern Home Medical also operates a very successful nurse staffing agency branded as Encore Medical Staffing. The company currently has company-owned and franchise locations across the Southeastern United States. The company plans to expand its reach and revenue base even further next year by ramping up the growth of the nurse staffing business.
Mr. Sarvis went on to say, "The ideal merger or acquisition candidate would be a business or businesses that have proven track records, potential for growth, are looking to expand and are scalable. The benefit of operating as a publicly traded company includes the ability to raise funds for expansion. We have been pleased with the expansion and growth of Encore thus far internally, and we're ready to add additional businesses that would offer synergies to our already existing business portfolio."
When pressed, Mr. Sarvis stated, "Yes, we already have a few candidates in mind."
Mr. Sarvis finished up by saying, "We want our investors to know that our share structure will remain intact. We will only increase the number of common or preferred shares of our company with the interest of the business and shareholders in mind. In other words, we are not the type of company that you typically see trading at our level that max out shares for the benefit of management. If you ever see an increase in the shares of Southern Home Medical, you can count on the fact that it was in the best interest of the business and the shareholders…period. This is an exciting and pivotal time in the growth and development of our company and I just want to reassure our shareholders that we will always do what is right on their behalf."
This news brought in lots of interest, and set longs with the mindset that mergers and acquisitions were being pursued, yet we had no idea what the time frame would be, and set the stage for the ultimate test of patience. Accumulation certainly occurred during this time, as well as the impatient moving on.
March 7, 2015 - Revenues & Merger Update -- Southern Home Medical, Inc. -
GREER, SC--(Marketwired - Mar 7, 2016) - Southern Home Medical, Inc. (OTC PINK: SHOM), a holding company providing healthcare services, staffing and medical equipment to medical institutions, facilities and in-home patients, has some impressive announcements this morning for its shareholders.
Jeffrey L. Sarvis, President & CEO of Southern Home Medical, stated, "These are exciting times for SHOM. In my judgment, based on discussions and activities to date, we are a month or less away from closing on what should be considered a significant merger transaction. When I say significant, I'm saying three things. One, that it will create exponential value & growth for the company. Two, it's in the best interest of our shareholders and three, there's no egos involved in what role I have, if any, in order to allow the overall business to move to the next level."
SHOM finished the year 2015 with $1,140,504 in Revenues, $60,983 in Net Income and $455,512 in Net Assets. The company finished the year with 786,509,863 common shares outstanding and has not increased that number to date. The company is fundamentally sound.
SHOM finished the year poised and financially ready to pursue sale, merger and/or acquisition opportunities and was able to quickly attract interest.
Mr. Sarvis went on to say, "After years of careful stewardship of this company, like anyone would, there are mixed emotions about the future, but this company needs to be positioned to reach its full potential. We are thankful for shareholders who have always believed in our mission and we look forward to sharing more details with each of you within the next 30 days."
With news at this point, shares are already in tighter hands, and would move thinner. New investors that hadn't viewed the recent 10K, now saw that the company is fundamentally sound. The company has left the share structure intact for several quarters, and is obvious that they have been carefully planning this move for sometime, with a longterm vision intact. Some of this message appears to be somewhat in code. "there's no egos involved in what role I have, if any, in order to allow the overall business to move to the next level." This sounds very much like a change in control coming, signaling a bigger company will be swallowing up SHOM. It is reaffirmed here as well, "After years of careful stewardship of this company, like anyone would, there are mixed emotions about the future, but this company needs to be positioned to reach its full potential." This is almost sounding like a farewell, and I did this for all the shareholders, (himself included). The best part: we are a month or less away from closing on what should be considered a significant merger transaction. When I say significant, I'm saying three things. One, that it will create exponential value & growth for the company."
Fundamental:
2015 10K: http://www.otcmarkets.com/financialReportViewer?symbol=SHOM&id=150889
786,509,863 common shares outstanding as of March 7, 2016
Float: 462,417,400
2015 Gross Sales: $1,140,504
2015 Net Income: $60,983
Something to note - I saw some substantial purchases for telephones and computers, which was attributed to some expansion in 2015. I also saw payroll rising, signaling growth of staffing billing.
Cash: $67,965
Accts Receivable: $240,459
Total Assets: $455,512
A note on the assets, the fixed assets have been heavily depreciated for tax purposes, in the amount of $224,800. While there is depreciation occurring, surely not as rapidly as they have written it off. There is also value there not shown in Total Assets.
Total Liabilites: $128,432
None of these liabilites are convertible debt, or long term debt, just liabilities associated with the operation of the company, and are a fraction of the assets. The rarest thing in the penny world for a company with real revenue and turning a profit.
This stock has big potential in the next 30 days, and beyond into 2016 as events unfold, and the uptrend is still in it's early stage.
Some investors have complained about frequency of updates, and when I contacted SHOM recently about it, they had this to say:
How could better awareness be achieved while limiting expense? I don’t see why small corporate victories could not be advertised via Twitter. You have the account, and investors monitor it just as closely as the PR wires, and has zero cost. I hope this may be an option you would at least consider.
We agree. Jeff Sarvis has spoken much about this in the office. He agrees. He recognized just how important social media is and you will see more of this in the future.
GLTA
Technical:
50 Day moving average began a new upward trend in Dec 2015. It occurred shortly before a catalyst that solidified the new upward trend.
On January 11, a pull back occurred lasting a few days, resulting in the 13EMA bouncing off the 50 day as the price action gained traction again.
Throughout the uptrend, the 50 day appears to be providing continuing support.
On February 10, the 50 day upward trend and the falling 200 day resulted in a Golden Cross, further confirming the uptrend's strength.
Now, in March, a new catalyst has arrived, and signaled a pending catalyst that could permanently send the price to higher levels and stay there.
Catalysts:
December 16, 2015 - Southern Home Medical Aggressively Pursing Merger/Acquisition Targets -
http://www.otcmarkets.com/stock/SHOM/news/Southern-Home-Medical-Aggressively-Pursing-Merger-Acquisition-Targets?id=121610&b=y
GREER, SC--(Marketwired - Dec 16, 2015) - Southern Home Medical, Inc. (OTC PINK: SHOM), a holding company providing healthcare services, staffing and medical equipment to medical institutions, facilities and in-home patients, announced today their intention to pursue merger and/or acquisition targets in the medical industry.
"Our position for growth and acquisition has never been better than right now," stated Jeffrey L. Sarvis, President & CEO of Southern Home Medical, Inc. "We are generating well over one million in annual revenue with little to no debt, other than daily operations, and we are cash flowing nicely. The timing is right for a candidate who is a proven operator and will blend seamlessly with the businesses that we currently operate."
Southern Home Medical owns and operates ApneaRx, a medical equipment provider for both in-home patients and medical facilities. Southern Home Medical also operates a very successful nurse staffing agency branded as Encore Medical Staffing. The company currently has company-owned and franchise locations across the Southeastern United States. The company plans to expand its reach and revenue base even further next year by ramping up the growth of the nurse staffing business.
Mr. Sarvis went on to say, "The ideal merger or acquisition candidate would be a business or businesses that have proven track records, potential for growth, are looking to expand and are scalable. The benefit of operating as a publicly traded company includes the ability to raise funds for expansion. We have been pleased with the expansion and growth of Encore thus far internally, and we're ready to add additional businesses that would offer synergies to our already existing business portfolio."
When pressed, Mr. Sarvis stated, "Yes, we already have a few candidates in mind."
Mr. Sarvis finished up by saying, "We want our investors to know that our share structure will remain intact. We will only increase the number of common or preferred shares of our company with the interest of the business and shareholders in mind. In other words, we are not the type of company that you typically see trading at our level that max out shares for the benefit of management. If you ever see an increase in the shares of Southern Home Medical, you can count on the fact that it was in the best interest of the business and the shareholders…period. This is an exciting and pivotal time in the growth and development of our company and I just want to reassure our shareholders that we will always do what is right on their behalf."
This news brought in lots of interest, and set longs with the mindset that mergers and acquisitions were being pursued, yet we had no idea what the time frame would be, and set the stage for the ultimate test of patience. Accumulation certainly occurred during this time, as well as the impatient moving on.
March 7, 2015 - Revenues & Merger Update -- Southern Home Medical, Inc. -
GREER, SC--(Marketwired - Mar 7, 2016) - Southern Home Medical, Inc. (OTC PINK: SHOM), a holding company providing healthcare services, staffing and medical equipment to medical institutions, facilities and in-home patients, has some impressive announcements this morning for its shareholders.
Jeffrey L. Sarvis, President & CEO of Southern Home Medical, stated, "These are exciting times for SHOM. In my judgment, based on discussions and activities to date, we are a month or less away from closing on what should be considered a significant merger transaction. When I say significant, I'm saying three things. One, that it will create exponential value & growth for the company. Two, it's in the best interest of our shareholders and three, there's no egos involved in what role I have, if any, in order to allow the overall business to move to the next level."
SHOM finished the year 2015 with $1,140,504 in Revenues, $60,983 in Net Income and $455,512 in Net Assets. The company finished the year with 786,509,863 common shares outstanding and has not increased that number to date. The company is fundamentally sound.
SHOM finished the year poised and financially ready to pursue sale, merger and/or acquisition opportunities and was able to quickly attract interest.
Mr. Sarvis went on to say, "After years of careful stewardship of this company, like anyone would, there are mixed emotions about the future, but this company needs to be positioned to reach its full potential. We are thankful for shareholders who have always believed in our mission and we look forward to sharing more details with each of you within the next 30 days."
With news at this point, shares are already in tighter hands, and would move thinner. New investors that hadn't viewed the recent 10K, now saw that the company is fundamentally sound. The company has left the share structure intact for several quarters, and is obvious that they have been carefully planning this move for sometime, with a longterm vision intact. Some of this message appears to be somewhat in code. "there's no egos involved in what role I have, if any, in order to allow the overall business to move to the next level." This sounds very much like a change in control coming, signaling a bigger company will be swallowing up SHOM. It is reaffirmed here as well, "After years of careful stewardship of this company, like anyone would, there are mixed emotions about the future, but this company needs to be positioned to reach its full potential." This is almost sounding like a farewell, and I did this for all the shareholders, (himself included). The best part: we are a month or less away from closing on what should be considered a significant merger transaction. When I say significant, I'm saying three things. One, that it will create exponential value & growth for the company."
Fundamental:
2015 10K: http://www.otcmarkets.com/financialReportViewer?symbol=SHOM&id=150889
786,509,863 common shares outstanding as of March 7, 2016
Float: 462,417,400
2015 Gross Sales: $1,140,504
2015 Net Income: $60,983
Something to note - I saw some substantial purchases for telephones and computers, which was attributed to some expansion in 2015. I also saw payroll rising, signaling growth of staffing billing.
Cash: $67,965
Accts Receivable: $240,459
Total Assets: $455,512
A note on the assets, the fixed assets have been heavily depreciated for tax purposes, in the amount of $224,800. While there is depreciation occurring, surely not as rapidly as they have written it off. There is also value there not shown in Total Assets.
Total Liabilites: $128,432
None of these liabilites are convertible debt, or long term debt, just liabilities associated with the operation of the company, and are a fraction of the assets. The rarest thing in the penny world for a company with real revenue and turning a profit.
This stock has big potential in the next 30 days, and beyond into 2016 as events unfold, and the uptrend is still in it's early stage.
Some investors have complained about frequency of updates, and when I contacted SHOM recently about it, they had this to say:
How could better awareness be achieved while limiting expense? I don’t see why small corporate victories could not be advertised via Twitter. You have the account, and investors monitor it just as closely as the PR wires, and has zero cost. I hope this may be an option you would at least consider.
We agree. Jeff Sarvis has spoken much about this in the office. He agrees. He recognized just how important social media is and you will see more of this in the future.
GLTA
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