Weekly thought on $AMRN, $IBIO, $CERS, $LRAD, $MCIG, $SEED, $SIGO, ($TRXC=Jackpot!)

This week surely gave some magical dust to the infamous Friday the 13th week. The Dow continued to make new high, and I won the bet on $TRXC.  Yay!

Yesiree! FDA OK the TransEnterix ($TRXC)’s Senhance robotic surgical system to be used in the U.S.A. Whoa! We now have a robotic surgical system that gives you haptic feedback and camera control using your eye movements as a directive command.  Come on now, who does not want that?!?  If the tool hits a bone, the surgeon can “feel” it!  If it hit soft tissue, yep, the surgeon can feel it too.  “Can somebody move the camera up please?” is now as simple as looking up with your eyes.  Who does not want that???

Below is an excerpt from the news “TransEnterix Announces US 510(k) FDA Clearance for Senhance Surgical Robotic System” that summarized all of their strong points in a nutshell:

“With this clearance, the Senhance becomes the first new market entrant into the field of abdominal surgical robotics since 2000. Using the system, a surgeon directs small surgical instruments and a camera with precise movements and comfort. The system builds on the foundation of laparoscopy and features the security of haptic feedback and eye-sensing camera control for the first time in a robotic surgery platform. Additionally, the Senhance utilizes an open architecture, which allows hospitals and surgeons to leverage existing technology investments within the operating room ecosystem. The system is specifically engineered to manage operative costs effectively, making robotic surgery cost-effective on a per-procedure basis through the use of fully reusable instruments.

Notice the three moats that give Senhance a run for the money against the ISRG’s Da Vinci systems:

  1. FIRST TIME in robotic surgery platform–>haptic feedback and eye-sensing camera control
  2. Open architecture allows ease of assimilating to existing technology
  3. SPECIFICALLY ENGINEERED to manage operative costs effectively

This new kid in the block is going to knock off the old kid in the block.  $ISRG, the old kid, is going to have a hard time competing with the more robust and innovative look of the new kid who like to help you keep cost down.  Haptic feedback and eye control, not to mention lower per patient cost, sound very alluring to the new buyers. Don’t you think?

“Don’t you think the Da Vinci system is kind of old?” may become the common question to the surgeons who experienced the newly FDA approved Senhance robotic system.

“Perhaps, it’s time to replace it with the Senhance?” a hypothetical question asked by the surgeon when speaking to the hospital administrative decision maker.

Wait! What can the old kid do to win the fight with the new kid?

Easy, buy him out!  However, anti-trust law may be an issue; but I won’t rule out other giant medical companies making an offer.

Unfortunately, I did not load up to swing for the fences because it’s was a gambling bet with a 50/50 chance. So, I’m not going to complain about not having enough shares.  However, I’m not opposed to finding a dip to add more on Monday morning if there is a dip which I doubted. Probably the best bet will be to buy at the open and bite the bullet if it still traded below $3 buck.

So, giving the win on my $TRXC, I considered this week a good “Friday the 13th” week.

$TRXC jumped to $2.62 in after hour trading from $1.46 close.TRXC_weeklyTechnically speaking, there is still a lot of room for this to run. Price traded as high as $6.10 last year when expecting a FDA approval on the Surgibot system.  With a much more enhanced Senhance system, I believe price could surpass $6.10 easily.  There is another bonus to FDA approval, TRXC now has the experience and know how to get their Surgibot system approved next time.  This double-prong attack may eat into ISRG sales effort in the near future when Surgibot system is approved as well.

This week I added $SIGO into my portfolio. Fundamentally speaking, it’s as simple as the fact that it is a dedicated cannabis grower in California.  Giving the fact that California will open the door for business in recreational cannabis in 2018, it’s a no brainer for buying it now since I expected demand will outstrip supply pretty quickly.

Technically speaking, price looks like it is ready to bounce off the 15 MA support.SIGO_weeklyWe are already in mid-October and it won’t be long when 2018 comes upon us. So, I’m loading up on cannabis plays that have footprint in California.

$MCIG is my other cannabis play which also has footprint in California with their recent purchase of land in Kern County, California.  But MCIG has other operations which I’m excited about. Below are recent news that I see has strong potential for the company in the near future:

Technically speaking, although a down week, it is still being support by the magical 79 & 89 MA supports; so I expect to see a bounce coming as we approach year-end.MCIG_weeklyNotice momentum indicators are at the lower end getting ready to move up.

$LRAD took a small tumble on low volume. LRAD_weeklyIt’s normal for price to head back to support after a breakout when no new news is announced. At this point, I am confident that LRAD will report more mass notification system sales in the coming future.  I also believe that the next earnings will wake up everyone on how far the company has come.  I’m still holding long and strong.

$SEED bounced nicely for the week. This one, in my opinion, is just a matter of when, not if.  GMO seeds will one day become the norm because our population growth demands it.SEED_weekly$SEED already have GMO seeds ready for final approval from China. So, I’m simply waiting for price to spike instead of chasing it when it does.

$CERS continued to head higher but I noticed resistance to the week of May 19th high @ 3.23 (see blue down arrow on chart)CERS_weeklySince price kept selling off at that point, I decided to take some profit and raised cash to see what happen next week.  However, with Friday after hour approval of $TRXC’s Senhance system, I may choose to deploy the cash I raised from selling $CERS to buy more $TRXC.

I bought a small position on $AMRN to allow me to keep track of the stock.AMRN_weeklyCurrent downtrend may or may not stop at this point but I want to be ready to jump back in when it does bounce.  Ideally, I like to add more at $3.00 which is where the 79 & 89 MA supports joined together.

Finally, $IBIO continued to be jerked around by traders or someone trying to shake shares to accumulate.  Like I said last week, I really don’t care what happen to the price action because I know that one day, this one will explode like no others.  New contracts with BPs or IND filing for fibrosis will do the trick. So, I regarded current price action as non-event.

Despite drawdowns from LRAD and MCIG this week, gains from $CERS, $SEED, $TRXC (including after hour gain) offset the losses to bring small gain to my port compared to last week.

Current positions:

Main port: SEED  LRAD  IBIO  MCIG  TRXC  SIGO  AMRN  CERS & cash (up 31.5% YTD)

Trading port: MENXF IBIO

My 2 cents

From my camera:

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Categories: Daily trading Journal, trading journal

Tags: , , , , , , , ,

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