Wow! 2018 kicked off with a wallop of a rally we haven’t seen since 2013. Take a look at the history of first week of Nasdaq since 2009 below (note: when January closed the week with only 1 to 2 days of the new year, I used the following week to capture the full new year week):
|Nasdaq Compositie Index|
|Year||Wk ending||First Week||Annual|
2009 is exceptional since it signaled the recovering of the bull market from the positive effect of the TARP and QE economic stimulation. 2017 is also exceptional because Trump won the POTUS. Now with 2018, a 3.38% gain in the first week could kick off another FANTASTIC year ahead. Of course, past performance is not an indication of the future but the probability is pretty good the stock market may see another banner year.
Thanks goodness my port also reflected the same bullishness with my own record-breaking first year gain in my trading career- a whopping 12.7% YTD in the first week for 2018.
Whether this return will go higher or normalized later will be determined by the development of the fundamental in the stocks I currently own.
This year, I started off the week buying two new stocks- $TEUM and $MARK.
I like $TEUM and got in at the low $2 even though the stock has already climbed 290% from 2017 low of $0.57 to my entry point. I attributed the rally to the two main catalysts:
- inclusion of blockchain settlements offering
- announcement that Pareteum Ends 2017 with a Record $147 Million Contractual Revenue Backlog
These first reason provided me the confidence to bite the bullet and bought on Monday morning and the second reason gave me the incentive to hold the stock for the organic growth of the company revenues stream which I believe is the sign of time for the services the company are offering. Basically, the excerpt below from news in item #2 above summarized the reason why I have high hope for this company:
“Across geographies and the fastest growing application markets including Internet of Things (IoT), Application Programming Interfaces (APIs), and Connectivity to enable mobile virtual networks, we are proud of our results-oriented sales team for delivering these industry leading results. The technology innovations and product enhancements we made this year allow us to enter 2018 poised to make another quantum leap forward in our business,” stated Pareteum CEO, Vic Bozzo.
“These contracts establish Pareteum as one of the fastest growing Cloud Communications companies in the world. The excitement of adding Blockchain capabilities, Artificial Intelligence (AI) and Machine Learning (ML) solutions, and, then applying these services to enable our customers, defines the opportunities we see ahead. In addressing these market segments, broadly including businesses, Smart City municipalities and the Internet of Things developer communities, we see material progress coming…”
The technology innovations which included adding blockchain capabilities, AI and ML solutions are why I think the company has a good head start “to make another quantum leap” in 2018.
Technically speaking, the weekly chart of $TEUM is showing a formation of a cup before the handle. If the company can maintain its growth momentum (see excerpt below),
Bolstered by 28 newly signed customer agreements in 2017, totaling $117,000,000 in 36 Month Contractual Revenue Backlog, the fourth quarter of 2017 represents an increased 58% over the third quarter of 2017 contract agreement executions. The Compounded Annual Growth Rate (CAGR) of Pareteum’s 36 Month Contractual Revenue Backlog is 389% since January 1, 2017.
it’s my 2 cents that $TEUM can easily break out of the cup formation to the upside even before the handle is formed if more new customers are announced soon.
$MARK is a pure AI (artificial intelligence) play I wanted to sign up for in 2018. After reading that the bellwether companies are gobbling up private AI companies out there, I think I’m lucky to find one in the stock market that is still available for investors like me to participate. Like $TEUM, I also jumped in AFTER the stock had made 400%+ gain from the low of $1.93 to my entry point. Despite missing a big chunk of gain due to my ignorance of this AI sector earlier, I believe we are still in the beginning stage of AI. If you’ve watched enough science fiction, you know there is so much more AI can do giving its current developmental stage. And it is my 2 cents that 2018 is the sign of time for the technologies of blockchain and AI to be adopted by companies to remain competitive.
Technically speaking, the weekly chart is in parabolic bullish mode.I do not know how long this uptrend will last but if the company continues to sign up more banks in China and perhaps in the U.S. and worldwide soon, I expect to see another strong year like $TSLA achieved in 2013 when the investors realized the technology was ready for prime time.
Both $TEUM and $MARK offered me nice gain for the first week in 2018; however, the bigger gains came from $AEMD.and $IBIO.
$IBIO rallied close to 28% and $AEMD rallied a whopping 38% for the 1st week. While there are other stocks that rallied much much more (like $CNET 423% for the week), I firmly believe that both $IBIO and $AEMD could perform the same feat if not better giving their catalysts I’m seeing.
The latest I heard is that $AEMD might be mentioned in tonight 60 minutes “Combat veterans suffering from same brain disease as concussion victims” segment which discussed CTE. Below is the definition of CTE from “What is CTE?”
Chronic Traumatic Encephalopathy (CTE) is a degenerative brain disease found in athletes, military veterans, and others with a history of repetitive brain trauma. In CTE, a protein called Tau forms clumps that slowly spread throughout the brain, killing brain cells. CTE has been seen in people as young as 17, but symptoms do not generally begin appearing until years after the onset of head impacts.
Below is a cut and pasted from AEMD website:
Diagnosing and Monitor Life-Threatening Diseases
Exosome Sciences, Inc., in collaboration with majority shareholder Aethlon Medical, is focused on the discovery of exosomal biomarker candidates to diagnose and monitor life-threatening diseases. The proprietary Enzyme-Linked Lectin-Specific Assay (ELLSA™) serves as a platform to isolate exosomal biomarkers from a wide-range of bodily fluids. In preliminary studies, ELLSA™ demonstrated the ability to isolate exosomes from urine, which resulted in high-sensitivity detection of HIV-infection. Specific to neurological disorders, Exosome Sciences discovered TauSome™, an exosomal biomarker that may be the first non-invasive candidate to detect Chronic Traumatic Encephalopathy (CTE) in living individuals. In a study of former National Football League (NFL) players, TauSome levels were found to be significantly higher as compared to athlete control subjects who participated in non-contact sports. TauSome levels also correlated with cognitive decline based standardized tests of memory and psychomotor speed. Visit www.exosomesciences.com for additional details.
Notice that AEMD is a majority shareholder of Exosome Sciences, Inc. While my past blog posts rarely mentioned this particularly feature of AEMD, I’m very happy to see that the market is responding well to it. I believe the exosome science may be the next break out discovery that will change the way treatments are being done currently in the medical community. However, I still believe CTE is merely a bonus while the main meat is in treatments of the two major categories below (cut & pasted from AEMD website):
- The Hemopurifier® in Infectious Disease
- Supporting an initiative set by the U.S. Department of Health and Human Services. Emerging pathogens pose a significant threat to mankind. Of the hundreds of viral pathogens known to be infectious to man, only a few are addressed with proven antiviral drug or vaccine therapies. Beyond the looming threat of bioterrorism, a proliferation of international travel, urban crowding and global warming is expected to accelerate the emergence of future pandemics. In response, the U.S. Department of Health and Human Services (HHS) has established an initiative to support platform technology medical countermeasures with broad-spectrum capabilities. Based on preclinical studies and human treatment experiences, the Aethlon Hemopurifier® defines this initiative.
- The Hemopurifier® in Cancer
- Capture Tumor-Derived Exosomes Underlying Several Forms of Cancer
- Upwards of 90% of all cancer-related deaths are attributed to metastasis. The spread of cancer from a primary site of origin to other organs or areas of the body. The mechanism of how tumors metastasize to distant sites in the body has long been one of cancer’s greatest mysteries. That mystery was recently solved when circulating particles known as tumor-derived exosomes were discovered to be the seeds that promote the spread and growth of cancer metastasis.
- Aethlon initiated its tumor-derived exosome research at a time when the medical community believed exosomes were merely cellular debris with no biological function. Today, a therapeutic to address tumor-derived exosomes represents a significant unmet need in cancer care. Aethlon has demonstrated that the affinity mechanism of the Hemopurifier® can capture tumor-derived exosomes underlying several forms of cancer, including breast, ovarian and metastatic melanoma.
- Our extended tumor-derived exosome researchBeyond their role in metastasis, researchers have also published mounting evidence that tumor-derived exosomes contribute to tumorigenesis (the formation of cancer), cancer progression, angiogenesis (creation of blood vessels to fuel tumor growth), immune evasion, and resistance to radiation and chemotherapeutic drugs. Recent discoveries also reveal that exosomes may contribute to bacterial and viral pathogenesis, the progression of Alzheimer and Parkinson’s diseases, the spread of prion proteins, and numerous inflammatory conditions.
I do not know if the two categories above will be mentioned in tonight 60 minutes segment but if AEMD is being mentioned at all, this little gem may not be a hidden gem for long.
BTW, it is my 2 cents that if the mechanism of the Hemopurifier can treat metastasis cancer in future trials, this is a billion dollar company in the making. As I had posted in my last week blog, the cancer treatments are worth over 100 billions annually!
Technically speaking, $AEMD is bouncing nicely and the next major resistance in the weekly chart below is a little above $3 where the 79 & 89 converged together.Momentum indicators and recent high volume all pointed to the possibility of further uptrend from here.
$IBIO is going to ride the same wave with $AEMD since it is the sole supplier of the cost-effective ingredients for AEMD’s patented hemopurifier. It’s my 2 cents that it is iBIO plant-based technologies that allowed the cost-effectiveness in making the hemopurifier an affordable products to be used widely; thus AEMD success is also IBIO success.
Of course, iBIO has its own pipeline that is also a major break through discovery if its lead therapeutic candidate, IBIO-CFB03, for the treatment of systemic scleroderma, idiopathic pulmonary fibrosis, and other fibrotic diseases work. We are all waiting for the filing of IND which I believe will happen in 2018.
There is also the possibility that we may hear more contract agreement with other BPs; if this is the case, iBIO will surely fly on the backbones of AEMD success, filing of IND, and contract agreements with BPs. While all these possibilities are still pending to be confirmed, there is no denying that once success (in any one of the three) is confirmed, $IBIO will not see under $1 anymore.
$LRAD is the only stock in my port that didn’t go up this week. But that’s ok with me since I believe it’s a matter of time before significant sales contract materialized in the mass notification business. Recent fiscal 2017 update gave me clue that its mass notification system are in demand. Notice the excerpt below from recent earnings call:
“Off note, most of the mass notification bookings in fiscal ’17 came through the channels originally developed to support the acoustic hailing device sales”
When you have customers who were buying acoustic hailing device started to order mass notification system, you know its mass notification system is gaining acceptance. It is my 2 cents that this little clue here is the tip of the iceberg for more mass notification systems order to come in 2018. That is my bet.
In a nutshell, I am so ready for 2018 to be the year where technologies for blockchain, AI, exosomes, plant-based protein expression, and long-range acoustic devices to make a major break through to become very relevant in our society.
All in all, despite a correction from $LRAD, gains from $AEMD, $IBIO, $TEUM, and $MARK gave me a fantastic first week start in a new year with a 12.7% 2018 YTD gain.
Main port: LRAD AEMD IBIO TEUM MARK & cash (up 12.7% 2018 YTD)
Trading port: MENXF IBIO
My 2 cents
From my camera: