Tag: palnet

I wrote about UnitedHealth Group earlier this year.  UnitedHealth Group is one of the largest health-insurance providers services roughly 50 million people with revenue of $226.2 billion last year. It also operates physician practices, sells consulting and data services, and administers drug benefits.

One of the major themes going into the 2020 presidential, at least by the Democrats will be the “Medicare for All” proposals. For example, earlier this year, Senator Bernie Sanders of Vermont is calling for government-run health care as a way of covering more people.  He’s even singled out UnitedHealth saying their greed would soon end.

But the chart suggested to go long UnitedHealth at the weekly demand at $210.

Price did eventually react to the weekly demand at $210, hit the target at weekly supply zone at $270.  But because the $270 was a level that contained a stack of unfilled sell orders, that level the chart also suggested to short price gain with the target being at the weekly demand at $210 again.

In mid-Sept, the “Medicare for All” theme went front and center when House Speaker Nancy Pelosi unveiled her bill that would allow the federal government to negotiate the prices of up to 250 brand-name drugs in Medicare that do not have competitors and the negotiated prices would be available to all purchasers, not just Medicare beneficiaries.  In addition, the bill would also cap seniors’ out-of-pocket prescription drug costs at $2,000 a year.  And all though Nancy is trying to impeach Trump, Trump actually supports Nancy’s bill.  So if Trump gets impeached which he won’t and if the Democrats win next year’s election, which they won’t, UnitedHealth current business model isn’t set up for a more regulated environment.  And that’s why the stock fell 3% today and that’s why price is testing the weekly demand at $210 again.

But this time could be a different story. The SPDR Healthcare Sector ETF, XLV still lags behind the S&P 500 ETF, SPY.

and relative to all the other SPY sectors, XLV is dead list.

Thus, the chart is suggesting the weekly demand at $210 won’t hold again, will be breached the zone in the near future and that price will move down to the weekly demand at $183.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Village Farms International, Inc., together with its subsidiaries, produces, markets, and distributes greenhouse-grown tomatoes, bell peppers, and cucumbers in North America. But in 2017, the company partnered with Emerald Health Therapeutics, a Canada-based, medical-marijuana research company and formed a 50-50 joint venture called Pure Sunfarms.

Because Village Farms International is still known as a produce grower the valuation is almost half those of other companies in the cannabis started.  But behind the scenes, they are converting their greenhouses to produce cannabis.  And what I didn’t know is the company has one of the lowest cost / gram equating to very good margins.  Thus, it only makes sense that the company had three straight quarters of recorded a profit with an avg. profit margin exceeding 20%.

Village Farms also has a hand in the hemp sector, so they have expansion opportunities in the US with the passing for the Farm Bill I 2018.

The 2018 farm bill, which legalized industrial hemp cultivation, has opened up new opportunities for cannabidiol (CBD) extraction in the U.S. that otherwise weren’t available to producers. Village Farms is looking to test the waters in this regard, initially growing and selling hemp biomass, as well as CBD oil on the wholesale market to boost its near-term cash flow. To do this, the company also has a separate hemp-based joint venture which includes over 920 acres across four states. Village Farms also expects to eventually sell CBD products directly to major retailers sometime in 2020. While there isn’t too much to say about this hemp joint venture considering the lack of significant financial results, it will be interesting to see just how successful its initial hemp/CBD efforts will be.

Source

Village Farms offer investors an opportunity to come into the cannabis space through the back door.  While other companies have been overhyped and haven’t been able to deliver, Village Farms is slowing starting to flex their muscles in the cannabis space.  And I particularly like their medical marijuana research company because in the future, the marijuana will be a low margin commodity.  So how should potential investors get into the stock, lets go to the charts.

Well, price did react to the daily demand at $9.60, but there are no more unfilled buy orders at that level.

Thus, the next stack of unfilled buy orders are at the daily demand at $6.50.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.