Weekly thought on $AEMD, $AMRN, $CGC, $IBIO, $LRAD

Before you read on, please be aware that the analysis below is my opinion only and may include flawed assumptions and inaccuracy of logic; therefore, caveat emptor applies here.  Furthermore, all emphasis (color-coded, boldness, and underlined) on the excerpts are my own.

This week action confirmed that the bull continues onward and forward.SP-500_weekly Per the weekly chart above, the SP500 is now at the previous historical high level.  If next week continues higher, the bull is back in total control.  The market is going higher!

Talking about going higher, my port value is going higher as well this week thanks to $CGC and $LRAD.  Both are in strong form and look to be even stronger next week.

$CGC continues to head much higher due to more and more people awaken to the fact that Canada is about to go full tilt on legalizing cannabis across the board. Recreational cannabis is going to be legal at the federal level on October 17th, 2018 in Canada.  This means most of the black market cannabis sales will now come to the surface, and the government is getting a piece of the revenues. CGC_daily$CGC started off strong on Monday, took a breather on Tuesday, did a yoyo on Wednesday, took it easy on Thursday, and Boom, made a mad dash to $46 but stumbled back to $45 to make another strong week being up 33.33%!  Whoa! I could not be happier!

Friday was interesting because of the news, “Canadian Marijuana Stocks Jump on Report Diageo Discussing Deal.”  When the alcohol companies begin to publicize their interest in cannabis to combat potential shrinking alcohol business, you know cannabis is becoming legit. I guess people who are high on recreational cannabis do not need to get drunk. And before you know it, the tobacco companies may even join the crowd, “Hey, since you’re going to smoke, why not smoke the cannabis-infused cigarette and get high at the same time?”

Due to another strong week, I’m expecting some volatility to come back; therefore, it may get rocky from here. Nevertheless, with 4 billion dollar sitting in $CGC bank waiting to be used for global expansion, it’s like buying an IPO of an established cannabis company.  Per my 2 cents, nothing will go straight up, but it will zig-zag its way up for the long-term trend when $CGC begins to show evidence that it is capturing a chunk of the cannabis business globally with their $STZ partner.

$LRAD made headline this week with the news, “LRAD® Corporation Announces $11.0 Million US Army Program of Record Order.”  This news has two essential elements that bode well for LRAD. First, it was a record order in term of size; and second, it proved that management was serious when they discussed the potential revenues in their last earnings conference call.LRAD_army orders Basically, management achieved what they said in the recent earnings conference call mentioned above. Having said that, now I’m really excited to wait for LRAD to achieve the next significant sales discussed below:LRAD_country-wide Once LRAD starts taking traction in selling their superior mass notification system to cities, it has the potential to be a much bigger company than it is now.

Technically speaking, the monthly chart below looks very bullish.lrad_monthlyTaking out the high of $3.88 achieved back in September 2014 will be very telling.  Stay tuned!

$AMRN has an interesting conference call set up on Monday, August 27, 2018, at 08:00 a.m. ET to discuss the following, “Investor Relations / Real-World Data Supports Association Between Elevated Triglyceride Levels and Increased Peripheral Arterial Revascularization in High Risk Statin-Treated Patients.”  I highlighted the key points of this article with the yellow marker below:AMRN_Trig150+ Basically, in my humble opinion, this is just one more evidence that support the possibility of efficacy in the Reduce-it trial.

What more do I need to say?  Despite negative sentiments from doubters and short-sellers, I’m excited to wait for the Reduce-it trial result to be released next month.  It’s kind of funny when doubters and short-sellers tried to equate the short-term downtrend to mean that “smart money” knows something when the fact is that nobody knows anything at this point.  The conference call mentioned above is just one more piece of information that even Amarin’s management hasn’t heard from the Reduce-it trial committee yet; otherwise, why bother with the conference call discussing the above.

In summary, I’m all set holding my Jan 2019 and Jan 2020 call options. The short-term trend of $AMRN means nothing to me, it is the Reduce-it trial result I’m betting on.

$IBIO and $AEMD continue to be in the background in my port waiting for catalysts to kick in.  For AEMD, the excerpt below from recent earnings conference call pretty much summed up what the company is waiting for.AEMD_FDA_guidance There is really nothing anyone can do but wait at this point.

Thanks to spectacular rallies on $CGC and $LRAD, my port achieved a strong weekly gain.

Current positions (in alphabet order):

AEMD  AMRN  CGC  IBIO  LRAD & cash (up 29.3% YTD)

My 2 cents

From my camera:



Categories: Daily trading Journal, trading journal

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