Weekly thought on $AEMD, $IBIO, $LRAD, $SOLO

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.

Turned out I was overly cautious last week when I feared the SP500 would reverse course from my perceived resistance. Instead, the price bounced higher.  I don’t mind being wrong because I prefer playing the market on the long side.  However, we are now facing another tougher resistance on the daily chart- mainly the daily 79 & 89 MA resistance.  SP-500_DailyAs seen on the daily chart above, price bounced all the way into the 89 XMA resistance (brown dash line) on Wednesday and began to drop back down on Thursday and Friday. Does this mean there will be a reversal? To make that determination, I also need to look at the longer time frame chart.  Let’s take a look at the weekly chart below: SP-500_weeklyThe weekly chart above showed that price dropped back a bit after reaching near the top parallel line (green line) that contained the multi-years uptrend, but that doesn’t mean the bull is over. All it means is that the bull took a breather after reaching near the top parallel green line.  There is a possibility that we could see price trending up slowly from here and stay inside the two parallel green lines.  In summary, I’m all for the continuation of the bullish trend, but I’ll exercise caution on monitoring any sign of bear attack.

Last week, I wrote a piece on how I believed $SOLO will become the premium manufacturer of electric vehicles. However, once in a while, I would step on a banana peel and ended up landing on my butt after picking a path to travel on. $SOLO is one such path. Pretty much after I bought the stock, the price began to slide down daily and ended with unexpected dilution news.  Talk about bad timing!  It was the worst timing ever! The only redeeming factor on my purchase of $SOLO is that I sold the stock during the fall to buy more warrants which did not fall as much as the stock.

$SOLO was halted for trading on Wednesday morning pending news, and everyone was baffled. Turned out the halt was due to the dilution news. And to exacerbate the bad news already, there was confusion whether the $2 offering price was Canadian or U.S. dollar.  The market decided it was Canadian and proceeded to trade lower trying to match the equivalent of US$1.52 (CAD$2 = US$1.52).  By Friday, the latest 424B5 filed on November 9th showed up on SEC filings confirmed that it was US $2.00

SOLO_offering Price

Source: November 9th, 2018 424B5 Filings

There is more clarity to be found in the latest 424B5.  The Tofino, which I thought was selling for US$50,000 is actually in Canadian dollar.  What that means is that the U.S. pricing is now $38,750 (based on currency exchange rate at the time of 424B5 update) which I think is even better!

SOLO_Tofini Price

Another piece of information I found in the 424B5 is that Zongshen manufacturer which was contracted to produce 75,000 units of the Solo over three years period purchased a bit over one million shares of $SOLO.  This is about 10% of the $SOLO.  To me, this is a ringing endorsement from a manufacturing partner.

SOLO_Zongshen2

Despite this unfortunate event of price decline after I bought $SOLO & $SOLOW,  I’m still excited about the path of $SOLO I’m taking because not only do I want to profit from this path, I also want to own the Tofino sports car when they are ready to ship. And I want to buy the Tofino with the money I make in $SOLOW.  This is my goal and may serve as an incentive for me to hold on to my warrants until the time is ripe to cash some of it to buy the Tofino.  $SOLO price settled at $1.92 as of Friday close.  I may pick up some $SOLO common shares Monday if price starts to bounce back above $2.

For the week, I also took up a smaller position on $KNDI to bet on earnings. Unfortunately, there was no big surprise on the sales of EX3.  I took my losses and decided to stick with $SOLO for speculation on the EV sector.

$AEMD reported earnings and offered an update that I think provided more potential than the viruses removal.  They are going to go after the cancer treatment for those inflicted with metastatic cancers.  Below is an excerpt from the CC: AEMD_exosomePer the above, “if you had later stage cancer there is going to be massive quantities, and at levels, we normally would never see” referred to the quantities of tumor-derived exosomes in circulation.  From a common sense logic and deduction, removal of these massive quantities of tumor-derived exosomes will allow the chemotherapy to be more effective. Per another excerpt from the CC below, there are now 184 journal publications supporting the thesis that tumor-derived exosomes inhibited 7 of the 10 top-selling cancer drugs.AEMD_exosome2 Giving the above two excerpts from the CC, I’m convinced the hemopurifier is a very potent medical device not just for removal of deadly viruses (known and unknown), but also for removal of tumor-derived exosomes that “feed the creation and spread of metastasis which is associated with 90% of cancer deaths.”

As far as I’m concerned (aka my 2 cents), $AEMD and $IBIO are two baby gems that I must hold on to for the imminent price appreciation when the world realizes the significant contribution the hemopurifier can provide to the human race.

$IBIO has two major catalysts listed below:

  • any announcement of FDA approval for AEMD’s hemopurifier to be used for either viruses removal or cancer treatment since iBio provides the bio-materials inside the hemopurifier
  • Filing of IND of its lead therapeutic candidate IBIO-CFB03 for the treatment of systemic scleroderma, idiopathic pulmonary fibrosis, and other fibrotic diseases.

Asides from the above, plant-based protein expression are DARPA’s backup for the future pandemic attack.  Giving our current climate and the persistent Ebola outbreak that won’t go away (see recent news, “DR Congo Ebola outbreak ‘worst’ in country’s history“), we need to be ready and prepared.

Per my 2 cents, $IBIO is a must have stock in my portfolio giving the delicate position our human race is in when facing a potential pandemic attack.

$LRAD has the technology that is needed to communicate to the mass with effectiveness and efficiency. Legacy bullhorns are no longer sufficient to inform the mass when televisions and social media do not offer immediate attention to danger in specific locations.  Global warming, whether we believe it or not, has already begun to manifest itself in an ugly way.  From my personal experience, summers are hotter, winters are colder, and the winds are blowing harder.  Just recently, the unfortunate event at the town of Paradise in northern California due to wildfire is nature way of warning us.  We must be on guard to protect life and LRAD’s mass notification systems can inform the mass more efficiently and effectively when TV and the internet are not accessible.  Sooner or later, cities and towns will recognize the need for better mass-notification systems to save lives by informing the public through the open air along with text messaging targeting specific areas.

Due to setback from $SOLO and $SOLOW, and minor corrections from $LRAD and $IBIO, my port gave back some this week.

Current positions (in alphabet order):

AEMD  IBIO  LRAD  SOLOW & cash (up 13.7% YTD)

My 2 cents

From my camera:

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Categories: Daily trading Journal, trading journal

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