Protalix Biotherapeutics (PLX) was added to the Barchart Van Meerten Specualtive portfolio this morning. They are engaged in the provision of practice management services to the Affiliated Practices pursuant to long-term Administrative Services Agreements with separately organized affiliated professional associations. Under the Administrative Services Agreements, they have control over all non-orthodontic functions of the PA Contractors, including administrative, management, billing and support functions. Dentists have a reputation of being poor business managers, so they need all the help they can get.
The fundamentals of this stock are very hard to believe. 7 Wall Street brokerage firms have buy recommendations published based on their consensus estimates that sales will increase 1647.40% this year and 542.00% next year. Please - these are their estimates not mine. They believe earnings will increase 26.80% this year, 33.30% next year and continue at an annual rate of 25.00% for the next 5 years.
The general investing public is sceptical of these projections and on Motley Fool the CAPS members are split by a vote of 110 to 79 that the stock will beat the market and the All Stars are evenly split 29 to 29.
I'm, going with the recent price action of 12 new highs in the last 20 sessions for a price appreciation of 15.85% last month. All 13 of Barchart's technical indicators signal buy and the 14 day Relative Strength Index is 73.84% and rising. The stock traded at 7.98 recently above it's 50 day moving average of 6.76.
Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.
Disclosure: No positions in the stock mentioned at the time of publication
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