COMMUNITY HEALTH SYSTEMS (CYH)
Company Profile
Community Health Systems, Inc. engages in the management and operations of hospitals. It operates general acute care hospitals and related healthcare entities that provide inpatient and outpatient healthcare services. The company was founded in March 1985 and is headquartered in Franklin, TN.
What Happened?
Over half a decade Community Health Systems reduced its trailing twelve month revenue by 9.2% for each year. That’s definitely a weaker result than most pre-profit companies report. So it’s not that strange that the share price dropped 32% per year in that period. The stock price dropped from a High of $53.50 to $1.79.
However, recently shares of CYH made new 52-week Highs on Thursday Feb. 21, 2020 after the company posted adjusted earnings per share of $0.40, well above the average analysts’ estimate of an adjusted net loss of $0.46 per share in Q4.
This has caused a technical Break Out on the stock above $4.90. which now should become Support. This could also mean that many Investors agree that the Company will no longer go broke. It could also be acquired before reaching the All Time High of $53.50. As a result, its Relative Strength as evidence in the daily chart is now 99.
When to Buy?
CYH is currently Way Above the Green Line. We will wait to Buy when CYH returns to the Green Zone for a Daily Money Wave Buy Signal.
Objective
Above the Green Line is watching CYH for a long term investment. Mutual Funds paid $53.50 for CYH in 2015, and is now on Sale. Target is $20.00, if it can hold above the $4.90 Support. Wait to Buy on the Next Daily Green Zone Buy Signal.
Follow the Rules: Above the Green Line + Above 90 Relative Strength
