Pro Medicus – Contract Win

Pro Medicus is under Algo Engine buy conditions.

PME announced a $25m seven year deal with NYU Langone Healthcare, which has now followed the recent $22m 5 year deal with Northwestern Memorial Healthcare.

These deals provide further evidence of Pro Medicus’ acceptance among some of the largest hospital groups in the US.

The stock is expensive, but the growth story continues to look compelling.

Technically, we have seen a recent higher low with strong buying off the $24.50 level in Friday’s session.

Pro Medicus – Buy Signal

Pro Medicus has switched to buy conditions after correcting from the $30 high back in May, to $24 in yesterday’s trading.

INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED
31 DECEMBER 2019. 1H20 revenue increased 15% to $29m and underlying profit before tax jumped 45% to $15m, (compared with $10m for the previous corresponding period).

PME is a high growth business, trading on a lofty PE of almost 100x earnings. Watch for the short-term momentum indicators to turn positive within the $22 – $25 price range.


Pro Medicus – Algo Buy Signal

Pro Medicus is under Algo Engine buy conditions and we add this one to our watchlist. With the stock trading on almost 100x PE, it’s expensive even after the share price correction from $38 to $22.

Short covering is likely to occur soon and it’s worth watching the short-term indicators for a reversal higher.

About: Pro Medicus are a leading provider of radiology information systems (RIS), Picture Archiving and Communication Systems (PACS) and advanced visualization solutions across the globe.

Buy range $22.50 – $23.50

Since writing the above post on the 9th of Jan, PME has rallied almost 20%.

The Algo Engine suggests it’s time to take profit.