Worth another read, "Technical observation and other thoughts."
-per Leirum
Keep in mind that my presentation is pure technical and does not take into consideration the story.
And here is the point: DECN is an emerging story stock, having been taken up by various medical newspapers , Forbes, Seeking Alpha and other publications in the U.K. (makes sense since this is the home of Life-Scan) Since DECN broke the monopole of J&J in the Glucose market, this market is in turmoil as can be seen by actions taken from J&J with reference to Life-Scan. The battle and pricing is on in this sector which of course is understandable if you are talking about a market in control of roughly 30 billion in the next 2 to 3 years.
DECN IF staying independent can grab plenty of revenues. So much is clear. But then rumours will start to fly about the bond payment. Is it 1 times or up to 3 times? But rumours will fly as well that somebody will go after DECN and integrate them, now as the whole glucose sector is on fire. What will be the price? This is when charts on the upside will not be helpful, because we could enter unchartered-territories and I have learned one thing over all those years: Once the rumour-cat is out of the box – the moves will become powerful as momentum players never will miss a party on one hand and on the other hand, such stocks will become then the playing field of daily traders in temptation to play a little short game just to realize end of the session or some days after, that the setbacks are not coming as they should. And if and when those Boys have to run after the positions, from whom should they get it if the market smells value?
What makes me feel very comfortable in this stock: The business is real – and for those still not fully informed about the picture, I can only recommend to read the FDA ruling and the USPTO ruling. If not enough, it is certainly recommended to study as well what came out early November: The U.S. Federal Court of Appeals ruled that Shasta Technologies, a subsidiary of Decision Diagnostics, was within their rights to sell their glucose testing strips, and that any decision allowing LifeScan, a Johnson & Johnson subsidiary, to block sales would be unfairly eliminating competition. Furthermore the ruling went on to say that the strips did not embody the claimed invention and were unpatentable.
And if this all is not enough for some, then this should do it: J&J released some important news last week: LifeScan, the company’s glucose monitoring unit will now become part of Janssen, JNJ’s pharmaceutical unit
And in another move to cut costs LifeScan will be closing their facility in Milpitas, California.
Strange as this news from J&J were last week for the financial press, they were not strange to some of DECN shareholders in case they listened into the telephone-conference that took place some months ago with the management of DECN. The CEO rightly predicted those kind of events and the implications for the sector and for DECN. A very wise forecast at that time and finally understood as well.
-I felt this needed to be re-posted as it was soon pushed to the bottom of the page after it was posted by more nonsensical posts by me & possibly others, lol
Good job & nice writing L!
