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.

Alert! Alert! We have a weekly doji bar on the SP500 right next to the resistance at 2816.94 I mentioned last week. SP-500_weeklyWhenever I see a doji bar next to resistance, I will become more alert to the price action that follows afterward. Since this week doji bar is directly below the resistance, I’ll rate the probability of a correction to be better than 50/50.  However, the other side of the probability is that the doji bar is a pause from the current uptrend.  Next week price action will be telling.

This week, I ventured into $MARK expecting the Chinese AI (artificial intelligence) to start a reverse back to the upside.  Well, it did start to bounce the next day, but it failed to hold the gain and collapsed on the same day to close negative.  Thank goodness I had a stop in place for protection and barely got out in one piece.

$AEMDThere are two pieces of interesting information that occurred this week that I find peculiar.

  1. I received the proxy voting instructions by email from Aethlon Medical, and it has the shortest voting instructions I’ve ever seen.  There are only two voting items- Directors and the independent auditor.  What does that mean?
  2. On Friday, a big block of stock was purchased at the close which spiked the price up to $1.05.

Ever since the earnings conference call, the company remained silent.  Could it be that negotiation is still taking place?  It is anybody guesses at this point.

Technically speaking: AEMD_WeeklyThe downdraft has been halted by Friday big block purchased.  And the chart looks like there is a possibility of a bounce from here. Next week will be telling.

$IBIO – One thing that stood out prominent this week was the higher volume traded WITHOUT news.  Price took out the dollar resistance on Monday and headed as high as $1.10; unfortunately, profit-takers and short sellers came in and took price back down to below a buck.

Nevertheless, the overall trend of $IBIO is still up. IBIO_dailyThe above daily chart showed that the price is trading above the daily 79 & 89 MA supports.  To me, this is very bullish.

Fundamentally speaking, my opinion is that the company is in the PERFECT position to capture a chunk of the growing biosimilars market with its low cost plant-based manufacturing process.  With $57 billion in biologic sales per year going off-patent by 2020 as mentioned in the article, “Future Trends in the CDMO Space,” it is becoming more of a “when” instead of a “if.”  Let review the excerpt from the article one more time with a different perspective: IBIO_OffPatentFrom my previous blog posts, I emphasized the $57 billion per year in biologic sales will be off-patent. This week, I’m going to emphasized the other important point from the same paragraph above.

the massive patent die-off hasn’t yet prompted the predicted boom of lower-cost biosimilars that is expected to bring relief and savings to patients all over the world

The above paragraph basically highlighted the FACT that LOW COST biosimilars HAS NOT yet begun.  This is where iBio’s plant-based tech comes in.  And the CC-Pharming deal is the kick-off point to start the ball rolling, in my opinion.

Thanks to @smiley7 from Stocktwits who provided the link to the article, “China Approves First Biosimilar of Foreign Drug, Breaking Roche Monopoly.”  Below is an excerpt from the article: IBIO_ChinaBiosimilarsThis is definitely a GREAT start to kick-off the biosimilars market in China.  However, tt is my opinion that the low-cost manufacturing process offered by plant-based tech can significantly help the mass with affordable biologic drugs that are going off-patent.  The day we hear about CC-Pharming’s biosmilars being approved in China is the day that $IBIO investors will be celebrating “again” if iBio hasn’t been bought out yet.  It is my opinion that long before China approves CC-Pharming’s biosimilars of rituximab using iBio’s plant-based tech, iBio may already have signed multiple deals with other biotech companies around the world to produce biosimilars.

Yes, I’m very optimistic with iBio plant-based tech.

$LRAD – This weekly chart is looking very bullish as of now. LRAD_weeklyThe uptrend continues with another 7.55% up for the week.  Instead of reiterating my bullish points, you can revisit my previous blog post that discussed more of the fundamental why I think this is going to go much higher.  Click here if you are interested in finding out more –> February 18th weekly thought

$SOLO – The weekly chart looks bullish to me. SOLO_weeklyWhen you compared this current rally to the one started in late October last year, there is a HUGE difference. Two weeks after the late October rally, the price fell back down to the dollar area.  As of now, two weeks after the February rally, the price is still trading at the $4 level.  This is probably because after Electra Meccanica hosted the Factory Grand Opening Ceremony in Chongqing, China on Friday, February 22, 2019, a lot of doubt about Electra Mecannica’s ability to produce the Solo en masse has been eliminated.

SOLO_open ceremonyWhat made the open ceremony even more official and “genuine” is the presence of the Canadian and United States Consul Generals. Basically, this is the REAL DEAL.

I added more $SOLOW this week after the open ceremony news because I figured if I didn’t pick up more this week, I might have to pay over a buck to get them later.

Technically speaking, the chart on $SOLOW looks even more bullish than the chart on $SOLO: SOLOW_weekly$SOLOW was up 34.29% for the week while $SOLO was only up 10.61%.  That sounds bullish to me.

Thanks to the rallies from $AEMD, $LRAD, and $SOLOW, it was more than enough to offset downdraft from $IBIO and $TRXC.

Current positions (in alphabet order):

Stocks = AEMD  IBIO  LRAD

Call options and warrants = CARA TRXC SOLOW

Up 25% YTD

My 2 cents

From my camera:

GardenPict0927 046

 

 



Categories: Daily trading Journal, trading journal

Tags: , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: