HCSG - Healthcare Services Group: Conditions Are Moving In Favor Of The Bulls Although The Charts Are Still Directionless

• It looks like there is a bottom in place for HCSG’s ongoing sequential revenue decline and the management sounded optimistic about business and industry prospects in H2.
• Dining segment margins continue to impress buoyed by lower investments in dietary supplies.
• HCSG has reduced its exposure to Genesis Healthcare (as of Dec-20, outstanding notes and accounts receivables totaled ~$44m) and maintains that the latter has not reneged on its dues.
• Over recent months, there has been some contraction in the forward P/E valuation premium of HCSG, but on the charts, the stock is looking for some leadership and is currently in limbo.

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