Here's the outlook for Remote Monitored Systems shares

by Alistair Strang from Trends and Targets |

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The shares have been the subject of internet chatter, but what does this analyst think will happen next?

While internet speculation focuses on links between Remote Monitored Systems (LSE:RMS) and such things as Covid destroying masks, a glance at the company website front page makes no mention of such a product. But something doubtless provoked the 20%-plus gain in share price on Wednesday.

[8 April: The company confirms that the Pharm 2 Farm Limited Pro Larva face mask has been approved as a Class 1 medical device by the Medicines and Healthcare products Regulatory Agency.]

From our perspective, RMS are worth some attention, thanks to the share price dropping to 1.15p in December. When we previously reviewed the share, we’d speculated on 1.15p as a potential bottom, a level from which a bounce was hoped. The price exactly hit our target, bouncing to 3.55p thereafter. This suggests it plays by our rules, with the result it’s probably worth updating our thoughts.

Movement next above 2.2p calculates with an initial tame target of 2.44p. But should such a level be exceeded, our secondary is vague, to say the least. Above 2.44p can easily bring 3p with a caveat. If such recovery is driven by positive news, the share price could easily accelerate to 4.9p. Above such a level shall prove game changing for the longer term, taking the price into a zone where we dare not currently offer any calculations.

Conversely, we’d panic a little if the share dropped below 1.5p as it enters a cycle where ultimate bottom at 0.87p works out as possible.

Source: Trends and Targets. Past performance is not a guide to future performance

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.

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