There are no featured stock write-ups on USNA proir to 2/5/2024
 Upgrade your membership to see all of the expert analysis we have published on USNA now!

Abrupt Retreat Following Breakout for Stock With Small Supply - Thursday, August 6, 2015

U S A N A Health Science (USNA -$19.28 or -10.95% to $156.84) abruptly pulled back and finished near the session low today with a big loss on heavy volume. Prior highs in the $145 area define initial support to watch. It quickly got very extended after highlighted in yellow with a pivot point based on its 7/02/15 high plus 10 cents in the 8/05/15 mid-day report (read here). Members were previously reminded - "A 'breakaway gap' is one noted exception where buying more than +5% above a prior high is allowed under the fact-based investment system. Risk increases the further one chases a stock above prior highs."

The high-ranked leader hails from the Cosmetics/Personal Care Industry group. It reported +41% earnings on +24% sales revenues for the Jun '15 quarter, and 3 of the past 4 quarterly comparisons versus the year ago periods were above the +25% minimum guideline (C criteria)  Sales revenues growth showed encouraging acceleration, up +11%, +22%, +20%, and +24% in the Sep, Dec '14, Mar and Jun '15 quarters, respectively versus the year ago periods. Its annual earnings (A criteria) growth rate has been improving since a downturn in FY '08.

Ownership by top-rated funds rose from 226 in Jun '14 to 263 in Jun '15, a reassuring sign with respect to the I criteria. Its current Up/Down Volume Ratio of 1.5 is an unbiased indication its shares have been under accumulation over the past 50 days. Its small supply of only 12.7 million shares (S criteria) outstanding can contribute to greater price volatility in the event of institutional buying or selling.