A Top-Notch Health Care Stock

by Sam Collins | June 16, 2010 1:09 am

Health Management Associates, Inc. (NYSE: HMA[1]) — This company owns and operates general acute-care hospitals in the southeastern United States.

The stock bottomed in November 2009 at under $1. In May 2009, it executed a very bullish golden cross and rose from $5 to its high in October at over $8. 

Upside volume has been accumulating since January, and in mid-March, HMA broke from a triangle[2], making a new high at over $9. 

Following the new high, the stock consolidated for a month before jumping to another new high at $9.80 on May 13, and then another pullback — this time to $8.26. 

Yesterday, HMA broke through both its 20-day and 50-day moving averages on a buy signal from the stochastic. 

The trading target for HMA is $10. S&P has a 12-month target of $10 and rates HMA a “four-star buy.” 

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net[3]. 

 

 

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Source URL: http://investorplace.com/2010/06/stock-picks-health-management-associates-inc-hma-2/
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