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.

Well, the January effect for 2019 is working out so far BUT… sp-500_weeklyAs you can see on the weekly chart, the SP500, although an up week, is now at the tip of the 79 MA resistance.  Price needs to go over this resistance next week or face a possible turn-around.  The last thing we want to see was another repeat of 2018 when price began to fall in February.  The blue downtrend line also needs to be penetrated to the upside as well.

Last week, I doubled down on my stake in $TRXC LEAP call options because of their latest news release, “TransEnterix Receives FDA 510(k) Clearance for Senhance Ultrasonic System.” The excerpt below pretty much spelled out the importance of having an advanced energy device in the robotic-assisted surgical device (RASD). trxc_ultrasonic

My 2 cents is that with the advanced energy capability, it completes the Senhance as a powerful RASD against the Da Vinci RASD.  Also, as we move along into 2019, decisions from hospitals sitting on the four-to-six quarters’ decision-making process will also come into the picture.  I’m betting that there will be much more buyers of Senhance this year.

I also closed out my $CGC call options to lock in profit.  The reason is that I see a possible double-top on the daily chart (see below). cgc_dailyAlthough I’m bullish on cannabis stock, $CGC is a very volatile stock that can move one way (up or down) very quickly; therefore, I took profit for now. I’m aware I could miss another spike up next week by being out.

$AEMD – Some are wondering what is going on with this company ever since the new interim CEO took over.  The silence is deafening seems to be the standard complaint from the chatrooms. My 2 cents is that if (a big IF) there is a negotiation going on, it will take as long as needed until all parties are in agreement.  And then the lawyers will have to cross the “t” and dot the “i” until all parties are satisfied.  So, in a nutshell, I think the longer it takes, the odd is good the negotiation is still alive.

As far as I’m concerned, I believe (aka my 2 cents) that its recent breakthrough device designation awarded by FDA for metastatic cancer is a BIG PLUS for the company because there is a ready market for the hemopurifier to be deployed to patients afflicted with the deadly cancers. So, I’m optimistic that someone is interested in buying out this amazing medical device called the hemopurifier.

I’m holding this one for surprise news.

$IBIO – No matter how you look at it, either as a buyout candidate or a business that is becoming more relevant due to the trend in biotech companies utilizing the services of CMO/CDMO to lower cost and to speed up the “time-to-clinic” in their development of “designer” drugs, my 2 cents is that this little gem is about to become a big winner in 2019.  The most noticeable fact is the posting of more hiring reported by contributors at Stocktwits.  Why would iBio hire more people if they don’t have new businesses coming in?

“Why is there new businesses now when they don’t have enough of it before 2018?” you asked

Well, first of all, CC-Pharming from China pretty much kicked off iBio’s plant-based technology into high gear with more than $3 million in deferred revenues, a record-breaking deferred revenue in iBio’s book.  Secondly, the trend in cell and gene therapy (CGT), the essence of the designer drug, is picking up steam.  This creates the demand for CDMO that can help the CGT companies to test their biological concepts quickly and economically.  Below is an excerpt from the article, “De-mystifying And De-risking Process Development Through Early Engagement With A CDMO” that best describes the CGT dilemma better than I could:

ibio_cgt

This is actually a very educational article, and I recommend readers to read it thoroughly to understand the benefits CDMO has to offer. Click here to read –> De-mystifying And De-risking Process Development Through Early Engagement With A CDMO

Below is another excerpt (conclusion) from the same article: ibio_cgt2The above conclusion is obvious, CDMO is becoming VERY RELEVANT to the world of cell and gene therapy (CGT) that is becoming more common.  The advancement in gene therapy demands the services of CDMO to help them navigate in the world of commercialization.  And iBio is ready to help them with the most economical price point that only the cost-effective plant-based tech can offer.

Folks, for those who read my blogs for years, you know I’ve been a believer in iBio’s plant-based technology and have been accumulating the stocks waiting for relevancy to kick in.  My 2 cents is that the relevancy has finally arrived.

$LRAD – Similar to IBIO, my 2 cents is that it is a matter of time before LRAD’s tech becomes relevant.  Giving the increasing natural disasters happening around us due to global warmings, the need for effective mass notification system is needed.  LRAD’s tech has the most advanced mass notification system as far as I’m concerned.

$SOLO – This is now a waiting game.  I’m waiting for the second quarter to kick in so we can see more and more Solo coming into southern California which, in my opinion, will spark more interest and more demand for the Solo.

Apparently, the price will be volatile while we are waiting because of the “dead money” stigma being slapped on the stock.  First of all, I believe there is no such thing as “dead money” when investing in the stock market.  I believe it is a term used by traders who don’t have the patience to wait for an investment to mature and grow.  Traders want instant profit so they can move on to other momentum stocks.  That is fine and dandy because I also participate in short-term trading as well.  My recent profit-taking in CGC is an example.

To me, investing in the stock market is to participate in the formation of our future world.  The world is always changing, and we can join in the change by taking a small bite (short-term trading) or by taking a BIGGER bite by buying and holding for the long-term change.  To me, “dead money” is when you are holding cash in the bank that is being devalued consistently by inflation. It’s that simple.

Thanks to the uptake on $IBIO, $AEMD, and $LRAD, my port gained a bit more despite downdraft from $SOLO and $SOLOW.

Current positions (in alphabet order):

Stocks = AEMD  IBIO  LRAD  SOLO

Call options and warrant = CARA  TRXC  SOLOW

Plus cash (up 2.5% 2019 YTD)

My 2 cents

From my camera:

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Categories: Daily trading Journal, trading journal

Tags: , , , , ,

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