BioScrip Inc (NASDAQ:BIOS) Rocked By Huge Asset Impairment

[[tagnumber 0]][[tagnumber 1]]The stock of BioScrip Inc (NASDAQ:BIOS) had been going downhill for quite a while but it was not until the company published its most recent 10–Q report in early–August that BIOS plunged so deep that a new 52–week low of $1.30 per share materialized on Aug. 17 following a series of losing trades. Since then, BIOS has partially regained some lost ground on the charts, yet it is still far from where it used to be less than a year ago.[[tagnumber 2]] [[tagnumber 0]][[tagnumber 4]]Yesterday, BioScrip closed trade at $2.55 per share, up 1.2% from the day before and exactly 70% away from its 52–week high. Thus, BIOS is currently traded at roughly the same value as in the pre–10–Q days. Now, a short glance at the quarterly report indicates that BioScrip actually basically raked in the same revenue as in Q1. However, the company has recorded a massive, one–off $238 million in the form of goodwill impairment, which has inevitably had quite an adverse impact on BIOS‘s net quarterly result. The latter is a loss in excess of $264 million, a six–fold increase on a year–to–year basis. The situation is much worse on a per–share basis as the figures for Q2 2015 and Q2 2014 amount to $3.62 and $0.29, respectively.[[tagnumber 2]] [[tagnumber 0]]Even though the goodwill impairment analysis is slated for completion in Q3, it has been recorded in the Q2 form. In this respect, further related information will be essential in determining the exact amount of impairment to be reported.[[tagnumber 2]] [[tagnumber 0]]At present, the stock could go either way. However, there is a fairly big short interest in the stock with a days–to–cover ratio of 11 or more, which suggests that some traders are still looking bearish on this stock. Nevertheless, that is not to suggest that BIOS will inevitably continue to gid deeper. On the contrary – a positive net insider buys is indicative of the confidence insiders may have in the company.[[tagnumber 2]] [[tagnumber 0]]We will follow how BIOS will unfold on the charts in the meantime.[[tagnumber 2]]