Healthcare in North America has been a volatile sector. With the big drops in Valeant and Concordia north of the border and drops in Gilead and Celgene in the USA, the sector has lost some of the shine it previously held. There have been some smaller names starting to percolate to the top of the rankings. Here are a few Canadian charts to think about.
Nobilis Health (NHC.TO) was a very strong performer in 2014 and early in 2015. After having a major correction, the stock has become a top performer again. With the previous high almost 80% above current levels, there seems to be room to run!
Bellus Health (BLU.TO) has been a tiny cap that is rocketing higher. With a pullback that started today, this might be a nice little position if you can find a good entry after the stock settles back from its parabolic surge. I would encourage you to look at the stock on a weekly chart. Something's goin' on inside that office.
Spectral Medical EDT.TO is just climbing out of sub-$1.00 price range, so let's not get too excited. But it is a new 52-week high today and it's clearly breaking out from a one-year consolidation.
Below is another tiny-cap with a nice little breakout going on. After a good run in 2015, the stock retreated 50%. Now, it looks like it is trying to build a fresh new uptrend. Theratechnologies (TH.TO) might be able to turn it up now.
Let me shine some light on Knight Therapeutics. (GUD.TO). This stock has made a wonderful base. A breakout to the topside looks very investable after this big base building.
Not a lot of the larger cap names performing very well on the Canadian side, but these micro-cap names look interesting. Volatility is always present on these types of investments so this is not for newbies to venture into. Small positions are the name of the game.
I will be presenting at the Calgary CSTA meeting tonight. Follow this link for more information. I will be presenting to the Vancouver Chapter on May 18th, 2016. Victoria/Vancouver meeting 2016-10-18. You can also follow me on twitter @Schnellinvestor. Sometimes email is the best way to receive these articles. Feel free to click on the Yes button to get this blog direct into your email when new articles arrive. I will also be doing a Commodities Countdown Webinar Thursday 2016-05-12 so click on the link to register!
Good trading,
Greg Schnell, CMT, MFTA.
