WED 5/14: PLMR – My Last SELL SIGNAL Was a Prudent Call Yet Shares Recovered and Robust Gains Followed

10:43 PM – All three sell signals have already been called on PLMR, officially closing out the trade under our system. However, we continue to follow the stock as it remains technically sound. The sells were executed at $132.91 (+2.1%), $133.92 (+2.8%), and $151.30 (+16.17%), averaging out to a +7.69% gain on the full position. My final SELL SIGNAL on PLMR was a prudent call, as the stock was already breaking below its 10-day moving average, then fell much further the follow day.  Since then, the stock has continued to behave in near-textbook fashion, with only quickly-recovered dips below the important 10-day moving average.

While this trade is now closed, the strong follow-through underscores the importance of letting winners run. That said, this was a swing trade — and if it had been one of our Traditional BreakOuts, it would still be considered an active holding. For members who may still be holding shares, a break of the 10 DMA *$155.18) — especially if accompanied by a sharp drop in price and a spike in volume — would now qualify as a SELL SIGNAL under our standard rules.

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Chart services courtesy of stockcharts.com. Annotations by James Taulman.

TUE 5/6: PLMR – Reports First Quarter 2025 Results

8:58 AM – This specialty insurer announced first-quarter financial results for the period ended March 31, 2025, delivering strong premium growth and record adjusted net income.

  • Gross Written Premiums: $442.2 million, up 20.1% year-over-year
  • Net Income: $42.9 million, or $1.57 per diluted share, versus $26.4 million, or $1.04 per diluted share in Q1 2024
  • Adjusted Net Income: $51.3 million, or $1.87 per diluted share, up 84.6% year-over-year
  • Total Loss Ratio: 23.6%, improving from 24.9% in Q1 2024
  • Combined Ratio: 73.1% (vs. 76.9%); Adjusted Combined Ratio: 68.5% (vs. 73.0%)
  • Annualized ROE: 22.6%; Adjusted ROE: 27.0%

Management highlighted sustained premium momentum across core specialty lines and continued expense discipline driving margin expansion.

Chart services courtesy of stockcharts.com. Annotations by James Taulman

THU 4/10: PLMR – One of the Strongest Stocks in This Market

PLMR has been one of the strongest stocks in the market over the past several weeks.

Since its gap-up breakout on earnings in mid-February, PLMR has been trending higher, showing excellent relative strength. Aside from a brief pullback to the 50-day moving average (50 DMA) on Monday—which acted as solid support—the stock has maintained its uptrend and recently hit new price highs.

Technical snapshot:

  • Relative Strength Rating: 96

  • Composite Rating: 98

  • RS Line: Hitting new highs ahead of price, a bullish signal

  • Volume: Above-average on up days, lighter on pullbacks—confirming institutional support

  • 10 DMA: The stock continues to hold above this KEY moving average.

I have called two SELL SIGNALS on the first buy and one on the second buy:

  • 3/17 at $132.91 (+2.1%)

  • 4/4 at $133.92 (+2.8%)

  • For the second buy, 4/4 at $133.92 (+1.3%)

 

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

FRI 12:14 AM: Today’s Action in PLMR Triggered My BUY Signal

Late Friday afternoon I got a 1/3 position in PLMR at $130.24.

At that time, it was trading higher from its 10 DMA with a volume increase.

Shares have been in a healthy uptrend since the sharp gains made on earrings 30-days ago.

At this point, there is basically no resistance in the way of further price progress.

However, a break of the 10-day moving average, currently at $128.41 would be a SELL signal.

 

SYM LAST $ CHG % CHG BUY DATE BUY PRICE BUY TIME SIZE %G/L
PLMR $131.77 $4.38 +3.44 3/14/2025 $130.24 3:47 1/3 +1.17%

 

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For more than 8 years James had served as Editor-in-Chief of an independently licensed website that offered stock reports and services based on the CAN SLIM® investment system.

He has developed a knack for being able to quickly and accurately analyze high-ranked stocks based on this winning investment strategy.

Over the years, Mr. Taulman has enjoyed assisting individuals from professional money managers to private investors with their needs in relation to implementing this investment approach on a daily basis in the current marketplace.

Each Sunday you could hear him deliver his weekly market report as part of the “Your Money Matters” radio program on ABC and CBS radio networks.

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