01-17-2014 Trading Journal with emphasis on $SEED

Market had a mixed signals on Friday with the DOW up 42 points while the SP500 was down slightly.

Meanwhile, I was busy planting $SEED in my portfolio looking for strong growth in 2014.

I first came upon $SEED from a post from the The Fly,  I was intrigued by $SEED immediately when I saw the post.  It was as though $SEED was embedded with an alert signal for my eyes only.   At the time, my portfolio was already fully speculated and was also gaining ground in upward momentum.  Thus, I placed $SEED in my mental watchlist and moved on.

Recently, after taking profit from $GALE and $AMRN, I decided to look at $SEED again and was pleasantly surprised to see $SEED was in the beginning stage of bouncing off the 79 & 89 MA lines.  In other words, I saw the first green bar near the 79 & 89 support lines after five consecutive red bars.  The time couldn’t be more perfect.  I began to build my position on $SEED.

What is so special about $SEED?

Genetically modified (GM) seed is why I like it.

What tickled me the most was the below excerpt from $SEED website (underlined is my own emphasis):

Latest Updates on Corn Seed Biotechnology

GMO Corn Seed – Origin’s genetically modified phytase corn was the first GM corn seed which passed five phases of the GM approval process and received notification of Bio-Safety Certificate. Origin has further incorporated phytase traits into two of its best-selling commercial corn hybrids. Commercialization of these two corn hybrids is pending approval from the Chinese government.”

Based on my limited research, it seemed to me that China has only begun opening the door (cautiously) to genetically modified seeds giving that $SEED is still a microcap company with only $77.30 million in revenues for fiscal year 2013.  Upon further readings, I also found out that China has issues with GM seeds that came from outside China.  This tells me that protectionism is necessary for safety reason when it comes to GM seeds.  This also open my eyes to the possibility of $SEED since GM seeds from Monsanto Company ($MON) does not necessary have an advantage in China.

Recent news such as What Does Ukraine Stand to Gain from Farming Deal with China?” also added to the seriousness that China has on their food supply.

Will $SEED becomes China’s own Monsanto?

This is a speculation that I’m willing to risk some money on.

The way I see it, $SEED needs to show proof that their GM seeds are safe in China’s own safety standard.

We will soon find out when China makes the decision on granting approval to $SEED’s two corn hybrids for commercialization.

In a manner of speaking, the risk in $SEED is no difference from the risk of a biotech company waiting FDA approval on their new drug.

Chartwise, Friday huge volume reflected favorable sentiment and appetite for risk.

seed_daily

Price “may” continue to rally to take out the Jan 7th high of $2.94 in anticipation of possible approval.  On Friday, I added more $SEED by relocating funds from my $TINY position to $SEED.  Currently, $SEED is my third largest position in my portfolio.  I may adjust my position size on $SEED accordingly to my risk assessment in the next few weeks.

Asides from a nice run-up on $SEED on Friday, $LRAD also had a breakout day with higher volume.

LRAD_daily

As you can see on the daily chart above, price finally broke out of the two months long consolidation and closed above this consolidation.  I’m not surprised since I’ve been patiently waiting for this to happen.  I’m seeing a lot of potential in $LRAD’s mass-notification market with their new technology.

While $KNDI is currently the largest position in my portfolio, it won’t take that much for $LRAD to reclaim its top position since the number of shares I’ve in $LRAD eclipses my $KNDI share count.  Any serious rally on $LRAD will easily propel my portfolio to higher ground percentagewise.

Thanks to $SEED and $LRAD, my portfolio continued to head higher despite another correction on $KNDI.

Current holdings:

KNDI, LRAD, SEED, CERS, KGJI, GOGO, AMRN and 5% cash.

My 2 cents.



Categories: Daily trading Journal

Tags: , ,

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