Replies to post #37 on Laboratory Corp of America Holdings (LH)

[aCryptoKing]

Not really, stock may have some pent-up bubbling-under pressure.

[] 97mm Outstanding Shares
[] ~94% Institutionally-owned
[] ~90mm O/S institutionally held

[] So a small, tiny float

[] Stock dropped 50%+ post-Covid
[] $196.40 high (pre-Covid)
[] $98.02 bottom

As the LARGEST National Diagnostic Lab (imho, since COVANCE acquisition) I personally found it irrational that LH would get HAMMERED by over 50%: During a global health crisis & PANDEMIC no less! Especially since LH is a GLOBAL Company with labs in China & around the World.

Anyway, if you look through some of my posts you'll find links, info & recent developments; but NOTHING newsworthy really went on but Coronavirus testing-related progress recently.

They have:
[] An in-home self-swab kit
[] A serology antibody test
[] And their original PCR-Covid medical PCR

Ironically COVID just came & WRECKED the stock price! Which is when my scanners went off. But what's ironic is that LH was founded 40+ years ago as Roche BioMedical. And has deepened those roots as a biological lifesciences company (aka, a REAL PART of the global-crisis SOLUTION) AND enhanced their abilities multi-fold with their COVANCE acquisition.

So the SAME virus that CRUSHED the stock is NOW bringing in lots of additional revenues; as LH is executing AS EXPECTED (at least by me). These revenues should show up in Q2 & even heavier in Q3 as they ramp-up production & testing-capacity.

Additionally:
[] Trump signed $25B aid for commercial lab testing
[] Which should ease raw materials acquisition & facilitate production increases

[] They have the FIRST in-home test-kit in distribution
[] & they should be expanding production & increasing testing substantially in the coming weeks...Starting Monday this week.

So I guess the market is pricing a pps-recovery. The stock had a 26% increase in short-interest (from the previous reporting period), so it's possible they're covering to GET OUT of the WAY.


Which COULD make today's move a TECHNICAL ONE. If you know anything about CHARTS & technical analysis we hurdled QUITE A FEW obstacles:
[] The "U", cup or bowl was "filled"
[] Retraced a bit, & re-tested that U/Gap/Cup @ $150
[] We formed a quick cup-&-handle
[] We filled the GAP (~$151 to $158)
[] Tested, re-tested & surged a bit into the 50DMA
[] Tested & closed above the 50DMA
[] And today,... tested the 200DMA before market-close
[] & then in after-market closed ABOVE it...

That's a LOT of congestion to move UP through & represents as INCREDIBLY bullish imho. Especially going into next week. So we have the 200DMA that needs to get tested, but we could JUST AS EASILY have a GAP UP Monday... In which case, all kinds of scenarios are up for consideration & I won't bore the hell out of anyone with them.

If you check some of my posts I think they might color SOME of what's been shared here so far.... GL


LH

[aCryptoKing]

NPR says, 3-500x current-testing-levels NEEDED! ...in order to open the country: US is currently testing ~300k/day; but needs to be @900k - 10mm+/day according to Harvard & this expert on NPR:
https://www.npr.org/sections/health-shots/2020/05/07/851610771/u-s-coronavirus-testing-still-falls-short-hows-your-state-doing


LH