Weekly thought on $AEMD, $GRWG, $IBIO, $LRAD, $MARK, TRXC

Despite a weak rally, it is still much better than another week of falling market. SP-500_weeklySee how price this week closed above the bottom range of the parallel uptrend lines.

Thanks for a non-falling market week, my port dropped only slightly. However, I made another change to my port which included removing $HTGM and replaced it with $MARK.  $HTGM had been quite frustrating for the past several weeks since I owned it.  $HTGM selling pressure was distracting while $MARK looked pretty good with price bouncing off the 79 & 89 MA supports. Despite the hit articles by JCapital attacking $MARK, I still believe the AI technology is too new for all investors to understand the potential of Remark’s KanKan AI prowess. Apparently, the risk of speculating in $MARK has two folds-

  • market risk – the ability for $MARK to generate positive cash flows
  • technology risk – the ability for KanKan to perform the AI features according to its CEO claims

The way I see it, the AI market is so new and so full of potential that I will sooner risk some now than to worry about chasing $MARK when their AI businesses prove to be quite substantial.MARK_WeeklyTechnically speaking, the weekly chart above showed a nice bounce from the 79 & 89 MA supports.  As far as I’m concerned, a bounce off from the magical 79 & 89 weekly MA support reflected a high probability of bottoming out at the $5.50 level.

The big elephant in the room is my $IBIO holding.  Price trended down mainly because of the coming shareholders vote on the reverse stock split on Monday.  Below is an excerpt from the recent filings of Schedule 14A.

“At the meeting, you will be asked to consider and act upon the following matters:
1. To approve an amendment to our Certificate of Incorporation, as amended, to effect a reverse stock split of our Common Stock, $0.001 par value per share, at a ratio not less than one-for-two (1:2) and not greater than one-for-ten (1:10), with the exact ratio to be publicly announced and set within that range at the discretion of our Board of Directors before filing of the amendment effecting the proposed reverse stock split without further approval or authorization of our stockholders;

Here are my 2 cents regarding the reverse stock split.  While it is “preferably” that no reverse split is implemented, I see the strength of a reverse stock split WHEN there is a potential release of catalysts to support the higher stock price.  For example, supposed the company decided to do a reverse split of one-for-ten (1:10). This would change the stock price from current $0.16 to $1.60.  Hence, any release of catalysts after the reverse stock split will make it easy for the stock price to jump from $1.60 to $5 (212% increase) as opposed to making a big jump from 0.16 cents. Notice that 212% increase from 0.16 cents will only close the price @ 0.50 cents. Once the reverse stock split enables stock price to hit $5 due to positive catalysts, it makes it so much easier for institutions to buy the stocks as well.  In other words, reverse stock split works only if there are catalysts readily to be released to the public to support a stronger stock price.

$IBIO is my bet on the success of plant-based protein expression technology.  Daily price fluctuation based on fear of dilution or reverse stock split doesn’t concern me because a strong catalyst (such as successful fibrosis treatment) can make these issues meaningless.

I got a good feeling about $GRWG.  I think it is going to do tremendously well for the next few years.  With the Federal Gov’t supporting the States to govern their own cannabis businesses, $GRWG is going to take off like a jackrabbit.  Most likely it would be swallowed by a .huge agriculture company wanting to break into the legalized cannabis market.

$AEMD is a waiting game on words from the FDA at this point.  Thus, there is not much to write over here.

$LRAD has three major catalysts that, if triggered successfully, can have significant price appreciation for this relatively low float stock.  They are:

  • Selling mass notification systems to major cities
  • Selling Long Range Acoustic Devices for the US/Mexico wall
  • Selling HUGE volume of equipment to the U.S. military

It is my 2 cents that $LRAD, after all these years of building the business, is finally entering into the time and space where its technology is what the world needed.  It is TIME.

You can read my thought on $TRXC by clicking –> here.

Losses from $IBIO dragged my port down a bit this week.

Current positions:

LRAD  TRXC  IBIO  GRWG  MARK  AEMD & cash (up 3.8% YTD)

My 2 cents

From my camera:

IMG_0520



Categories: Daily trading Journal, trading journal

Tags: , , , , , ,

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