PharmaMaris a pharmaceutical company whose medicines are increasingly accepted and its income from royalties increases, obtaining greater visibility in the future. All of this makes it possible to improve its balance sheet (Axesor has raised its credit rating from B + to BB-) and to have a greater capacity to finance and face future projects. At the same time, compared to comparable companies, the company presents an estimated PER for 2021 of 16.32x, which is attractive for a company with high growth capacity, for which it receives a positive assessment by fundamentals (see “PharmaMar: with solid income from the oncology area, your assessment should be more generous”).
PharmaMar on daily chart and logarithmic scale, with Amplitude Range in percentage, MACD oscillator and trading volume
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A graphical analysis (using logarithmic scale) allows us to appreciate a long-term uptrend built over the last 3 years. A structure of increasing significant highs / lows with wide steps and lurching that leaves us with an average daily volatility of more than 5 percentage points that is characteristic of high-growth company stocks.
In recent quarters we have witnessed a series of lurching that lead to repeated crosses of the medium and long-term simple moving averages (40 and 200 sessions respectively). However, no significant lows are lost and the underlying bullish guideline remains in effect. It could be interpreted that we are in a consolidation phase which is allowing to purge excesses accumulated during the vertical rise developed during the years 2018, 2019 and part of 2020.
For bottom positions and with the price approaching the base of the lateral range or the consolidation phase, an opportunity could be granted to the long or buyer side.. The stop would be below the support zone between 66.26 and 59.32. A recovery of the minor resistance located at 78.96 (better if it is accompanied by trading volume) would return positive momentum to the short term and would allow to adjust the stop to the upside.