Per-Se Technologies

PSTIE

Company. Per-Se Technologies claims to be the leader in "connective healthcare," a term they invented themselves. What they really do is provide "... business services that help providers achieve their income potential by streamlining and simplifying the complex administrative burden of providing healthcare. Innovative technology, integrated networks, data mining, provider training and extensive industry knowledge enable us to accelerate the movement of funds to benefit providers, payers and patients." That is, they make software. (company website)

PSTIE stock chart

Buy. I bought PSTIE last week when it appeared to be breaking the $12 ceiling. The trend was gathering strength (black ADX line), and buying pressure (green +DI line) was still respectably higher than selling pressure (red -DI line).

There were two things about PSTIE that made me slightly nervous.

  • The ticker symbol is 5 letters instead of the usual 4 for Nasdaq stocks
  • Average daily volume has been shrinking slightly over the last two months.

I've not been able to find any specific news about the ticker, but I did notice that on the company website the ticker symbol is listed as PSTI. I did, however, find news about the company failing to meet the deadlines for filing recent financial reports, delayed to restate earnings. (The restatement resulted in an increase, rather than a decrease.) I surmise that the 5-letter ticker is a temporary one post some event.

loss Bottom line
-3%

Sell. Although the loss to date is far less than my normal limit of 8%, today's drop in the context of an enthusiastic market, combined with the declining buying pressure line (green +DI line), convinced me that there may be less here than meets the eye.

Bye, bye!