Remote Monitored Systems Share Price Forecast August 2021 – Time to Buy RMS?
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Shares of United Kingdom-based Remote Monitored Systems (LSE: RMS) have taken quite a tumble, currently trading around 0.669p. The share valuations decreased after Its Chairman Antony Legge put forward the challenges of moving away from the short term demands of the pandemic.
Remote Monitored Systems – Technical Analysis
According to the financial statement released by Remote Monitored Systems, its market cap is at £17.672 million with total assets worth £7.522 million. Income for the company increased in 2020, as indicated by revenues worth £104.31K compared to £52.65K in 2019. RMS shares are down year-to-date by 55.58%.
Moving averages for Remote Monitored Systems such as Simple Moving Average (50)(0.966), Exponential Moving Average (100)(1.191), Simple Moving Average (100) (1.223), Exponential Moving Average (200)(1.311) and Simple Moving Average (200)(1.760) are pointing towards a strong sell action. The majority of oscillators such as Relative Strength Index (14)(33.999), Stochastic %K (14, 3, 3)(43.154), Commodity Channel Index (20)(−222.963), Average Directional Index (14)(25.479) and Awesome Oscillator(−0.140) are neutral.
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Recent Developments
On 25th June 2021, Remote Monitored Systems announced that the UK Medicines and Healthcare products Regulatory Agency (“MHRA”) has approved the company’s 5-ply version of its Pro-Larva anti-viral mask which was developed in collaboration with Volz Filters UK Ltd. The special mask has two layers – an additional filter layer produced by Volz as well as a hydrophobic outer layer strengthening its bacterial filter efficiency. The working relationship between Volz and the company’s subsidiary, Pharm 2 Farm Ltd has already produced the existing 4-ply anti-viral masks.
Among other developments, Pharm 2 Farm Ltd has trialled a product to counter Citrus Greening, a condition resulting in poor vegetative growth. The company has also launched a new liquid nutrient for plants. They are also undertaking trials for food meant for monogastric animals. RMS is looking for suitable partners for each of the products mentioned above. However, the trials can take up substantial time, with the Citrus Greening product alone expected to take 4 years to develop.
Remote Monitored Systems has made several decisions such as developing the sub-contracting manufacturing arrangements with Voltz as well as the disposing of its subsidiary, Gyrometric Systems Limited. It is also in talks with Lemu regarding a mask-making machine that was installed at BioCity but never commissioned. Remote Monitored Systems will return the mask-making machine back to Lemu under agreed terms.
Should You Buy RMS Shares?
Investors must consider two main reasons for not investing in Remote Monitored Systems. The company is selling masks for £1 each, which means that a lot of masks need to be sold in order to profit and justify the £75 million valuations. There is also a risk that potential earnings could drop off soon.
Secondly, there are a lot of similar products and the mask by Remote Monitored Systems doesn’t appear to be a game-changing product. Panic purchases aren’t expected anymore since the government has enough time to sort out the PPE situation. So, considering all of the above factors now is not quite the time to pick up RMS shares. The priority of the company from the start of the year has been mask production where expectations outweighed what was really deliverable, in turn hurting its share price.
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