Weekly thought on $DMRC, $ARTH, $IBIO, $BIOC, $RBYCF

It was another strong week for the bull; however, there are still plenty of work for the bull to do.  The recent gains must be defended to build a foundation for more upside.

SPY_Weekly

Notice that this week closed right at the resistance level near the $SPY $195.xx level.  This resistance must be broken to the upside for the bull to maintain its upward momentum.  Otherwise,  a test for the $182.xx may be next.

$DMRC bounced after the earning call last Wednesday.

DMRC_weeklyThat is a very nice weekly green bar to climb back above the 79 & 89 weekly supports.

Anticipation ran high going into the earning call but the preparedness of the investors for the possible repeat of last quarter attack essentially neutralized the effect of the “expected” walk-down in price. As anticipated, everyone waited for the shorts to initiate the walk-down before jumping in for cheap shares.  I myself had laid down multiple lower bids from $28 to $26 to catch the bear’s generosity. As price bounced off from the low $26, I, along with other investors, began buying in earnest. Thanks to the short-sellers’ walk-down, I was able to add more shares with an average price in the $27ish.

Why did I add more shares to my already over-weighted position in $DMRC?

Well, after reading thru earning call transcript, it is hard not to be excited about the future prospect of Digimarc barcode and Discovery.  Below are some highlighted excerpts:

“We’re planning to officially launch DW codes at the GS1 connect conference, the annual knowledge and networking form for GS1 members and suppliers being held in Washington DC, June 1 to 3.”

“We also introduced a promising application of Digimarc Barcode for variable weight food product labels in partnership with Bizerba, a worldwide leader in manufacturing retail scales and weight price labeling equipment.”

“More recently another application new source audio launch, SourceAudio detect for tracking music usage and audio visual works noting that in their words, “Beta testing had been a huge success and we already have close to 3 million tracks watermarked via the service.”

“We worked hard to include prudential barcodes scanning the best of the class for smartphone users, Digimarc Barcode and Discover provide the foundation for the third layer, a growing application developed for community, the scope of which encompasses all things done today with barcodes and all things that could be done with barcodes in media that are not conventionally barcodable.

“The NRF was a great source of lead. More very important perspective customers are in development now. As you know, packaging is a subset of media that can be enhanced using Digimarc Barcode. Our channel partners have many brand relationships for some of which are visibility as limited by all stages of development of our channel program, competitive sensitivities among suppliers and other factors.”

We are witnessing the beginning of the global application developer community that will build expansive value on our platform. Our financial model provides access to the platform and return from modest time and value based payments by the owners of the benefited media. We commonly discuss our $50 per product annual license fee for instance. We understand the scale of this opportunity alone is enormous representing hundreds of millions of items that could benefit from the platform.”

“NRF was an inspirational show on every respect and a great source for many very important leads we are now in a month into following upon. There are numerous important accounts that we hope to close, newly enabled scanners to launch with market leading OEMs and new application areas under development. We anticipate providing more details on our next call at the end of April or sooner.”

Meanwhile, there is one very big telltale sign under the Q&A that points to potential adoption by the big retailers and brands:

“Bruce Davis

Getting attention is not our problem, in fact, I believe the level of visibility that we have in these giants is quite extraordinary and we all know for instance message that went out on Instagram last year. But, I can tell you that we’ve very senior level visibility in many multi-billion dollar companies right now.

All underlined are my own emphasis.

Source: Click here for link to transcript

There are a lot more positive developments from the earning call than I can include above without clustering up my blog post.  Needless to say, I simply could not forgo opportunity to pick up some cheap shares offered by the short-sellers after the earning call.

Frankly, the trapped shorts (currently represents 19.4% of the float) should worry especially when Digimarc is on the path to generate revenues now that the infrastructural supports are in place.

$ARTH was neutral for the week waiting for the human trial to gain momentum.  Nothing to do but wait.

$IBIO bounced nicely for the week after they filed the Form 10-Q.  As in all biotech stock, this one is all about forward looking rather than backward looking into the financial.  The prospect of fibrosis treatment is still very much what I’m betting on.  Any news on progress in this area may be the catalyst to drive price much higher.

$BIOC touched the prior year support of $1.09 and bounced back nicely to close the week.

BIOC_weekly

I believed this capitulation to $1.09 was due to short-sellers’ relentless attack which can be reversed quite dramatically if the upcoming earning shows healthy growth in the revenues stream.  I’m betting that it will so I bought back most shares I sold last week instead of waiting for it to drop below a buck.  The $1.09 support convinced me to load back up the truck.

$RBYCF closed the week neutral as well. I would be pleasantly surprised if price can climb back up to my entry point plus more; but I’m not going to expect too much from this one just yet.

My 2 cents

From my camera:

030

 

 



Categories: Daily trading Journal, trading journal

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