Weekly thought on $AMRN, $DMRC, $AKAO, $ONCY, $BIOC, $ARTH

It was a brutal week and I wasn’t prepared for the “big drop” even though I bought the put options on the SP500 last Wednesday.  I was counting on a bounce so I took profit too early. And on Friday, the price movements were in large range that it was quite risky to trade the SP500.  You could get whipped hard either way if you timed it wrong. Hence, I stayed out of the volatility and wasn’t able to take advantage of this week steep dive.

SPY_Weekly

As I’m typing now, the SP500 already dropped another 48 points in after-hour trading!  Those who have been positioning for this drop for months are finally getting their vindication.  Congratulate to them.

$AMRN took the lion share of the hit on Thursday and was neutral on Friday.

AMRN_weekly

From the weekly chart, price is still trading within the consolidation range of $1.8x and $2.6x.  There is a Fib 50% retracement support at current level.  Notice that both 79 & 89 weekly MA are at even level and neither up nor down.

$DMRC defied the odd and closed higher on Friday.  Quite impressive.  I would be even more impressed if the company announces some new development soon as hinted on their recent earning update.

DMRC_weekly

Price closed at the support of two-months at $36.47.

$AKAO gave back last week gain but still at the support of $6.93.

AKAO_weekly

I’m curious if the support will hold.

$ONCY was the only stock that did not look good on the weekly chart.  It showed a downward trending pattern.

ONCY_weekly

The next support is at the July low of $0.47.

Surprisingly, $BIOC ruled the week with an up bar on the weekly chart.

BIOC_weekly

The fact that $BIOC was oversold from the last four weeks made it possible for this week bounce.  At this juncture, the fundamental story is the driving force for Biocept to go higher.  Friday news on the replacement of the CFO with an interim CFO with acquisition experience fueled speculation of a BO.

“Mr. Foletta served as Senior Vice President and Chief Financial Officer of Amylin Pharmaceuticals, Inc. from 2000 through its acquisition by Bristol-Myers Squibb in 2012.”

I’m not a least bit surprised if this is the case.  And that is the reason why one must hold this speculation thru volatility and not dwell on the day-to-day gyration perpetuated by the short-sellers and day-traders.  It is my opinion that short-sellers are trapped at the moment.

Another excerpt from the Friday news release:

“Mr. Foletta serves on the boards of directors of publicly traded healthcare companies AMN Healthcare Services, Inc., Regulus Therapeutics, Inc. and Dexcom, Inc., and privately held ViaCyte, Inc.”

Take a look at the weekly charts of the public companies where Mr. Foletta serves as director:

AMN Healthcare weekly chart below:

AHS_weekly

Dexcom, Inc. weekly chart below:

DXCM_weekly

Regulus Therapeutics, Inc.weekly chart below:

RGLS_weekly

Having two out of three companies’ weekly charts on an uphill trendline is quite an impressive feat.

This tell me that Mr. Foletta is a heavy-weight player in the biotech field and his joining Biocept as an interim CFO is a significant event.

Below is an excerpt from the Form 8K:

“In connection with his hiring as the Company’s interim Chief Financial Officer, the Company and Mr. Foletta have entered into an Employment Agreement (the “ Employment Agreement ”), pursuant to which Mr. Foletta will be entitled to receive a base salary of $25,000 per month, and will be granted a stock option to purchase up to 50,000 shares of the Company’s common stock (the “ Option ”), which will vest in full upon the earlier of (i) the Company’s employment of a full time Chief Financial Officer to replace Mr. Foletta and (ii) six months from the commencement of Mr. Foletta’s employment with the Company. The Option will have an exercise price equal to the closing price of the Company’s common stock on the date of grant. In addition to a base salary, Mr. Foletta will be eligible to participate in the Company’s annual cash incentive plan for its executives, at the sole discretion of the Company’s Board of Directors, and is also entitled to participate in any employee benefit plan or arrangement made available by the Company to its senior executives.”

I thought it was quite a gesture to have an option granted for a short-term employment.  Hmm….

$ARTH was actually doing pretty good in light of the general market deep dive.

ARTH_weekly

It formed a weekly spinning top bar.at the 79 MA support.  Any update on the human trial will pop this one up regardless of where the DOW is going next.

While last week was ugly, it may get even uglier giving after-hour 48 points drop on the SP500.  At this point, the original game plan is still the same- hold on to my positions for long-term fundamental play

Current holdings:

Main port: AMRN, DMRC, AKAO, ONCY, BIOC and 5.4% cash. Trading port: ARTH

My 2 cents.



Categories: Daily trading Journal

Tags: , , , , , ,

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