Allion Healthcare (ALLI)

Company

ALLI 1-year chart ALLI 1-year chart

"Allion Healthcare, Inc. is a national provider of specialty pharmacy and disease management services focused on HIV/AIDS patients. Allion Healthcare sells HIV/AIDS medications, ancillary drugs and nutritional supplies under the trade name MOMS Pharmacy. Allion offers nationwide pharmacy care from its pharmacies in California, New York, Washington, and Florida. Allion Healthcare works closely with physicians, nurses, clinics, AIDS Service Organizations, and with government and private payors, to improve clinical outcomes and reduce treatment costs." (company website)

ALLI 6-month chart
ALLI 6-month chart

Buy

Allion began an uptrend last August after reaching a low near $3. After rising to $7, it pulled back to $4 in April 2007. The uptrend is now quite clear. Since June it has been building a base just below $6.

  • Price momentum (PPO) — dramatic increase since April, slowed a bit during consolidation
  • Relative strength (RSI) — had grown to very strong, now pulled back to neutral and pointing up
  • Trend (ADX) — strong, with buying pressure (+DI) and selling pressure (-DI) about equal after the consolidation
  • Volume — increasing noticeably in past month

Based on technical analysis, MarketEdge calls ALLI a "strong buy" in a "strong upward trend."

Sell

loss Bottom line
-1%

After watching ALLI over the past week, I decided to bail out today with a very small loss. The turn-around that I thought might happen just isn't happening. The indicators I watch have continued to deteriorate since the buy.

On the other hand, a second stock that I bought at the same time with a very similar looking chart, ANPI, is showing signs of coming to life.