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

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.

Oh boy! The bear is now at the second support which by now is below the 79 & 89 MA supports. SP-500_weeklyAs you can see from the weekly chart above, there are still the third and fourth supports before the bear takes a more influential control of the future direction.  Nevertheless, I usually will allow one or two bars to go below the 79 & 89 MA supports to see if price action can bounce back above the supports.  If they do, then I’ll still consider it a bounce off the 79 & 89 MA supports.  However, if price action does not bounce but continues southbound, then the 79 & 89 MA supports will become resistances.  This means the bear advances and gains more territory.  Well, the bull better kick some ass to get back above the supports soon!

This week was quite a trip for my port.  The volatility of $IBIO and $LRAD were quite wild. $LRAD earnings call reflected the prospect of a brighter future has never been stronger! $HIMX took a dump on Monday, and I couldn’t resist the low $3.xx entry point and bought some on Tuesday looking for a long trade.  However, I was stopped out on Thursday protecting my profit.  Until the bull takes back control, I’m only going to be holding only $AEMD, $IBIO, $LRAD, $SOLOW for long-term trade, and I will daytrade or swing trade as opportunities appeared for the stocks in my watchlist.

$AEMDAethlon announced the appointment of Timothy Rodell as Interim Chief Executive Officer this week, and everybody wondered what was up. Below excerpt from the news summarized the key points: AEMD_newInterimCEOLet break it down in outline format:

  • Experience in financing
  • Structuring corporate deals
  • Developing clinical development and regulatory strategy in the U.S. and internationally
  • Preparing for the next phase of development

The way I see it, former CEO James Joyce built the rocket, and now they need an operator to fly and guide the rocket to seek new territory.  I see this as a very responsible move from the Aethlon’s Board of Directors.  Former CEO James Joyce did a stellar job getting the Aethlon’s hemopurifier two FDA breakthrough device designations:

  1. The Hemopurifier is a single-use device indicated for the treatment of life-threatening highly glycosylated viruses that are not addressed with an approved treatment
  2. The Hemopurifier is a single-use device indicated for the treatment of individuals with advanced or metastatic cancer who are either unresponsive to or intolerant of standard of care therapy and with cancer types in which exosomes have been shown to participate in the development or severity of the disease. Therapy with the Hemopurifier device should be an adjunct to standard of care for cancer.

Now, interim CEO Timothy C. Rodell is going to take Aethlon to the next level. We can all speculate about the backstory that led to the hiring of Timothy C. Rodell as interim CEO, but my 2 cents is that this new development is all good.  Now, we just have to wait for the interim CEO Timothy C. Rodell to prove his worth.  Here’s the beauty, Timothy C Rodell received 552,625 options from the company. The strike price of the options received was $1.25, and these expire on December 09, 2028. Rodell now owns at least 552,625 options on the company. My guess, something big is cooking, and Tim is hired to navigate the ship through uncharted territory.

$IBIOiBio announced this week that the second complaint it filed in iBio’s litigation against the Fraunhofer organization – this time against Fraunhofer Gesellschaft (“FhG”), complaining that FhG had committed fraud against and was responsible for contractual breaches against iBio – was dismissed by the Delaware Chancery Court as untimely filed.  Basically, FhG lucked out on a technicality. Did anyone notice that iBio had satisfied the five-element test adopted by the Supreme Court of Delaware as stated below in iBio news update? IBIO_case_dismiss

  1. a conspiracy to defraud existed
  2. the defendant was a member of that conspiracy
  3. a substantial act or substantial effect in furtherance of the conspiracy occurred in Delaware
  4. the defendant knew or had reason to know of the act in the forum state or that acts outside the forum state would have an effect in the forum state
  5. the act in, or effect on, the forum state was a direct and foreseeable result of the conduct in furtherance of the conspiracy.

See the #1 item above? Defraud existed!  #2 to #5 reflected the complicity that FhG is in. Like I said, my 2 cents is that FhG lucked out.  However, FUSA may not be so lucky as the case continues to advance.  But I’m not here for the legal settlement, I see it as a bonus if iBio receives a settlement.  Plant-based tech offers by iBio have a great future ahead, and that is my bet.  Not to mention that the Aethlon’s hemopurifier future success is also iBio’s success. And don’t forget that iBio has its own lead therapeutic candidate, IBIO-CFB03, for the treatment of systemic scleroderma, idiopathic pulmonary fibrosis, and other fibrotic diseases to begin Phase I soon enough. A lot of irons in the fire here.

$LRADLRAD released earnings this week, and I  couldn’t be happier with the updates giving at the conference call. Below are some excerpts from the conference call:

LRAD_army orders2

LRAD_massNotifSize

LRAD_massNotifCA

Below summarize the above excerpts in outline format:

  • 2019 Army order is looking good to exceed $11 million
  • Country-wide mass notificaton sales opportunities range from $1 million to $25 million with some on the extremes as well
  • City and county officials in Northern and Southern California are looking into LRAD’s mass notification systems with the possiblity of federal funding

The above three gave us a taste of more to come than what investors usually see before. What I like about the new management is that they are proactively seeking opportunities.  Recent wildfire in California is a great example.  A lot of irons in the fire with LRAD as well.

$SOLO – There is going to be an EMV Live Update hosted by Jerry Kroll, taking place December 19, at 5pm PST on Facebook.  Looking forward to hearing about the Zongshen manufacturer update.  Despite the current bearish stock price, I’m actually looking forward to seeing more Solo out on the streets.  I believe Zongshen will deliver and the price will bounce back above $4 as soon as investors realize that Solo is coming to California en mass by Zongshen. Of course, I’m jumping the gun here.  Let’s see what Jerry Kroll has to say on Wednesday.  I bet he will show video of Zongshen’s facility showing Solo rolling off the assembly line.  That would be a great way to start 2019!

Thanks to upswing on $AEMD and my profit on $ HIMX, my port did not give back much despite a down market.

Current positions (in alphabet order):

AEMD  IBIO  LRAD  SOLOW & cash (up 6% YTD)

My 2 cents

From my camera:

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Categories: Daily trading Journal, trading journal

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