Date : January 6, 2019

New Opportunity:  Patient Access Solutions Inc. (OTCMKTS: PASO)

 

With the complete obliteration of the Biotechnology market segment over the past 3 months (the IBB ETF has fallen as much as 28% since September). The move has left tons of strong values lying around on the floor. And it has also exposed a tide of short interest to major squeeze vulnerability, with some of the most heavily shorted small-cap plays presenting some of the most compelling opportunities now.

 

One of the most interesting examples we have come across is PASO. Below, we will explain exactly why that is.

 

Symbol:  PASO

Company:  Patient Access Solutions Inc.

Quote:  http://finance.yahoo.com/q?s=PASO

Latest News:  http://finance.yahoo.com/q/h?s=PASO+Headlines

Company Website:  http://www.pashealth.com

Who is PASO

Patient Access Solutions Inc. (OTCMKTS: PASO) was incorporated in 2006 as an innovative technology solution geared toward the healthcare sector.

 

According to a detailed business plan from the company, PASO has predicated its big-picture strategy on a foundation built of the fundamental recognition that healthcare is the largest industry in the world and that it offers many opportunities to capture data and complete transactions electronically, the company began to apply its technology knowledge in this marketplace. Patient Access Solutions, Inc., as a technology solutions provider is focused on quality and service within the healthcare community, with an overall focus of using innovative and secure technology to facilitate their client’s needs.

 

Perhaps most interestingly, the company has opened the C.I.I.T. Medical Center (Center for Integrative and Innovative Therapies) which specializes in chronic health conditions including Autism, Concussion, PTSD and numerous other brain related, and biomedical conditions including Depression, Anxiety, Thyroid conditions and much more. The Center will offer innovative healthcare strategies for children and adults and additionally implement novel and effective strategies of rehabilitation for post-concussion syndrome and like syndromes. Additionally, the Center will be operated with an eye to leverage each patient to include all their family members for every non-invasive, non-radiation test currently known.

 

Autism Spectrum Disorder (ASD) is the fastest growing developmental disability and is diagnosed more frequently than AIDS, cancer, and diabetes combined, with 1 in 59 children now being diagnosed (CDC, 2018). With an annual growth rate of 10 – 17 %, this represents a problem of epidemic proportions.

 

As of November 2012, new legislation took effect mandating insurance coverage for all children with an autism diagnosis up to $45,000/year/child in New York State, where the C.I.I.T. clinic is based. This Center is located in Plainview, New York in a 12,500 square foot facility. Now that this Center is completely up and operational, the company plans to build additional locations on a nationwide basis, encompassing all of the protocols.

 

In other words, expansion is in the works.

Recent Catalysts

Aside from the opening of this new Center, and aside from legislation subsidizing care for many New Yorkers, and aside from rapid growth in the need for the Center’s unique approach, another big catalyst has come into view: Short squeeze potential.

 

According to a recent release, PASO shares are trading on a small and limited trading float and have been heavily shorted: “For the previous 30 days, 87% of the trades were short sales. Of the 5.1M shares traded over 2M or 35% of the total volume were short sales. As we continue to coordinate updating our financials with the auditors we felt it important to alert our shareholders and maintain the best level of transparency we could provide until we are current with our filings. We are planning on providing a more detailed update next week. We would like to thank our shareholders for their patience.”

 

Now consider that the company also just announced that it has engaged Alpha Street Media to manage investor relations. In other words, PASO is getting serious about telling its story to the world. And we think, given the big decline in biotech in recent months, and given data suggesting this stock has strong squeeze potential, this combination could possibly help to ignite a potentially powerful technical spike.

Technical Analysis

In fact, it may already be underway. One look at the chart shown below will highlight this “squeezability” dynamic. Shares have doubled in the past month, and a lot more could be on the way now that traders can see the blood in the water. And with an investor relations firm in the mix, telling the market all about the upside potential here is likely already a process in motion.

 

The action over the past month has taken this stock back above its now-rising 50-day major moving average, which brings technical systems into the picture as well.

About PASO

PASO (Patient Access Solutions Inc.) is a technology solutions provider focused on quality and service within the healthcare community, with an overall focus of using innovative and secure technology to facilitate their client’s needs.

 

Perhaps most interestingly, the company has opened the C.I.I.T. Medical Center (Center for Integrative and Innovative Therapies) which specializes in chronic health conditions including Autism, Concussion, PTSD and numerous other brain related, and biomedical conditions including Depression, Anxiety, Thyroid conditions and much more.

 

The Center will offer innovative healthcare strategies for children and adults and additionally implement novel and effective strategies of rehabilitation for post-concussion syndrome and like syndromes. Additionally, the Center will be operated with an eye to leverage each patient to include all their family members for every non-invasive, non-radiation test currently known

Key Points:

 

  • PASO is moving aggressively into the healthcare space as a unique provider of care in NYC, where Autism will be one major focus, with care heavily subsidized by the State.
  • PASO is making real money, with trailing revs already coming in at $2.4M, with projected revenue growth of over 200% annually from this new Center.
  • PASO has a small trading float and lots of short interest, with a recent breakout suggestive of further squeeze potential for shares.
  • PASO is coming off an RSI trough under 40, pointing to a massively oversold stock now heading back the other way.
  • PASO just recorded a MACD Bullish reversal, suggesting a technical change in trend.
  • PASO also just broke out above its now-rising 50-day moving average

 

Conclusion

 

Specialized healthcare is a big part of the 21st century economy. And PASO is looking to be a leadership innova

tor in that theme. The company’s new Center is expected to make big bucks, and the company plans to expand to additional locations.

 

With so much of the stock’s small trading float potentially locked up by shorts, the technical picture here favors a strong possibility for further squeezing action, as has already been on display over the past month. This one deserves some immediate attention.

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