CAN SLIM Strategy – APHA

APHA daily chart courtesy of MarketSmith

Current Quarterly Earnings – APHA per share earnings are up 633% in the most recent quarter increasing to 22 cents from 3 cents. Additionally, earnings growth has now accelerated for 2 consecutive quarters (3 is ideal). Next earnings report is scheduled for late March.

Annual earnings growth – APHA is estimated to make a profit of 24 cents this year versus a profit of 12 cents last year. A 100% jump in annual earnings growth is well above the 25% threshold. Additionally, annual earnings for 2020 are estimated at 54 cents (+125% growth) with recent revisions on the rise.

New product – APHA produces and sells medical cannabis to patients and health professionals. APHA was founded in 2014 and is headquartered in Leamington, Canada. Additionally, new CEO search underway.

Supply and demand – APHA has an up/down volume ratio of 1.0 as shares climb the right side of a potential new base. 

Leader or Laggard – APHA is in the Consumer Product Specialty group which is currently ranked number 40 out of 197 industry groups. With a relative strength rating of 13, APHA is underperforming the S&P 500 over the last 12 months.

Institutional sponsorship – APHA has an Accumulation/Distribution rating of A- and mutual fund participation has increased to 83 funds from 55 nearly a year ago.

Market direction – Market is in a confirmed uptrend with 2 distribution days on the S&P and 1 distribution day on the Nasdaq.

Notes: APHA has printed multiple pocket pivots as price climbs the right side of a potential new base (1/31, 2/1 and 2/4 most recently). Currently, a bull flag setup into a sharply rising 10ma on declining volume.

*Recently rejected takeover offer from Green Growth. *Special committee looking into LATAM holdings acquisition alleging significant overpayment.

APHA weekly chart courtesy of MarketSmith

Disclaimer: None of the presented content represents individual investment advice to buy or sell securities and the information provided is solely for informational, educational and entertainment purposes. Author has a long position in APHA at the time of this writing.