Weekly thought on $AEMD, $IBIO, $LRAD

The broad market continued to make historical high this week but the weekly bar reflected only a small range bar.  Most likely because of holidays season and traders and investors were on vacation.  However, I decided to play safe by holding more cash to see if there are sell-off coming next week.

I sold $TRXC on Tuesday when price failed to follow through from Monday up day after their news “TransEnterix & GBIL Ink Deal to Commercialize SurgiBot System.”  Because I figured while the news looked favorable, there are still regulatory hurdles to overcome before Surgibots are available for sales.  So when price started to fall on Tuesday, I decided to take whatever profit I’d left to protect my gain. Hindsight speaking it was a wise choice.  However, I’m not sure I made a wise choice on my $AMRN trade which I took profit on Friday despite a strong week.

I bought $AMRN on Monday after price continued to rally above the magical 79 & 89 MAs. I then double-down on Tuesday when price took a pause. Wednesday was a solid up day but Thursday made me cautious due to some correction during the day.  And this caution caused me to think of taking some profit on Friday when price was facing the $4 resistance.  And before I knew it, some selling became a full scale unloading.  This is a nasty habit of mine which I needed to exercise more control over.  My fear of major correction during late afternoon or next week prompted me to liquidate my position before the weekend.  I may regret my action but I’m going to keep an eye on it and look to buy back at the best opportunity.

$IBIO bounced this week which was no surprise to me.  Eventually, the underlying strength of the fundamental will remain as the fog of doubts and manipulation of price action by short-term traders & daredevil shorts dissipated into thin air.

So what is the underlying strength of the fundamental again?

First and foremost is the technologies behind plant-based protein expression.  It’s cost effective and more efficient when it comes to production when compared to traditional method.  Significant cost reduction can be achieved. Per Dr. Carol A. Feghali-Bostwick in her video presentations, a gram of peptide using iBIO’s plant-based technologies is as cheap as $50 when traditional method costed as much as $25,000!  This outrageous cost saving can only be suppressed for so long.  Eventually, a single event like an FDA approval of AEMD’s hemopurifier may knock out resistance to the new technologies.

But how can such cost saving be suppressed so easily?

It is my opinion that iBIO’s former partner, Caliber Biotherapeutics, threw a wrench into the iBio machinery that caused it to jam up.  Sudden take-over of Caliber’s plant-based production facility in January 2016 by iBio and shareholders’ update later revealed that iBio spent much of its valuable time and money to bring the facility back to FDA compliance standard.  Without the FDA compliance in place, it didn’t matter how great the technologies are, they couldn’t sign contracts with anyone.  This caused stock price to tumble down.  Although iBio spent much of its precious working capital in bringing the facility back to compliance status with the FDA guidelines, it’s my 2 cents that the company emerged as a much stronger company because it has ownership of the facility.

Recent contracts with TheoremDx (collaborate to develop proteins for rapid diagnostics testing products) and Aethlon Medical (to support potential large-scale production of the Aethlon Hemopurifier® blood purification device), to me, proved that their facility is now in compliance and also validated iBIO’s plant-based technologies for protein expression.  YET doubters and frustrated investors prevailed and sold the price down to ridiculous level.  This forced the company to issue secondary offerings as an unfavorable price of 20 cents.  HOWEVER, I saw this as an opportunity to buy more as such bargain price.  Not to mention that iBio’s biggest insider, Eastern Capital, also had an opportunity to buy another chunk of shares at bargain price as well.

In a way, it’s a blessing in disguise since catalysts for iBio’s plant-based technologies have yet to show its prowess.  Below are what I posted last week with the addition of catalysts I expected to see:

I’m expecting good things ahead for $IBIO.  2018 could be the breakout year.

$AEMD corrected some from last week spike up.  The way I see it, profit-taking from traders is giving late comers another chance to buy at bargain price.

As mentioned in the above catalyst for iBio. the hemopurifier for metastasis cancer treatment is what I believe to be a potential massive win if it proves to work.  Think about it, if it can cure metastasis cancer, it may be able to cure most other forms of cancer.  If it is as simple as starving the cancer cells by filtering out all the tumor-derived exosomes the cancers needed to survive and grow, AEMD will have discovered a revolutionary way of cancer treatment that is much less painful than chemo.  Imagine the new way of cancer treatment:

  • AEMD’s hemopurifier to starve the cancer cells
  • plus other treatments to boost the body immune system to destroy the remaining starving cancer cells.

What more can I say about AEMD’s powerful hemopurifier except that it is an opportunity of a lifetime at this price range.

$LRAD continued to stay on its bullish path. I’ve no doubt that the company will continue to receive orders for their superior mass notification systems as well as their long-range acoustic devices.  With the strong orders from U.S. Army reflected in their recent earning updates (see excerpt below):

  1. In FY17 we received our largest domestic order, a $6 million U.S. Army order. This order was for more than 2 times that was originally budgeted for the army to buy in FY17.
  2. In fiscal ’18 we expect the U.S. Army to release an RFP for our multi-year program, this award is of course dependent on an approved FY18 defense appropriation bills.

Here is an “What IF” scenario.  What if the U.S. Army has decided that the LRAD is considered an effective tool to be used strategically in today modern warfare?  I would think that the $6 million U.S. Army order which was more than 2 times that was originally budgeted was a tell tale sign.  Of course, it’s just my 2 cents.

To hear the clarity of its powerful long-range communication, you can review the videos and hear for yourself by clicking the link here–> VIDEOS

Thanks to rally from $IBIO, $LRAD, and swing-trade profit from $AMRN, my port gained some despite correction from $AEMD.

Current positions:

Main port: LRAD  AEMD  IBIO  & cash (up 24.5% YTD)

Trading port: MENXF IBIO

My 2 cents

From my camera:


Happy Holidays to ALL!

Categories: Daily trading Journal, trading journal

Tags: , , ,

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