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Monthly Archives: September 2013

Why $GALE should be your best friend

I like $GALE.  Besides the potential disruptive biotechnology that can eradicate breast cancer, it is launching the sales of ABSTRAL® (fentanyl) sublingual tablets which are indicated for the management of breakthrough pain in cancer patients 18 years of age and older who are already receiving and who are tolerant to opioid therapy for their underlying persistent cancer pain.

Basically, while we are waiting for the development of their breast cancer treatment to come to fruition, they have the mean to start generating revenues from the specialized painkiller.  This is the kind of painkiller that will provide faster pain relief than the usual opiate drug such as morphine.

I was lucky to sell before the secondary offering and then giving the opportunity to buy them back after the secondary offering.

Sidebar: I’ve learned to take advantage of the opportunity of a dip provided by secondary offering.  If the company has a solid fundamental, secondary offering is an “offering” of an opportunity for investors to either add or buy at a discount.  I had been waiting for a chance to get back on the 3D printer and $SSYS gave me the opportunity with a secondary offering.

Now, I’m waiting for the fundamental to take effect to drive the $GALE back up based on the future revenues of Abstral or the possibility of a take-over.

Take a look at the daily chart below:


There is a breakout to the upside today from the consolidation after the secondary offering.  This signifies that the momentum is still bullish despite a gap-down.  There may be some resistance from here due to the overhang of the 79SAM and 89XMA.  If price can take out these two MAs, then we are heading up.

Take a look at the weekly chart below:


Did you see that the uptrend is still intact?  Did you see the price is bouncing off the 79SMA and 89XMA?  This bounce off is more significant than the short-term daily 79SMA and 89XMA resistance I mentioned earlier from the daily chart.

Now, you know why $GALE should be your best friend, eh?

My 2 cents



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$TTWO takes two punches before speeding ahead

When I found out that $TTWO’s new Grand Theft Auto V (GTAV) game raked in over $1 billions in three days after launching, I was pleasantly surprise to see price actually softened instead of a spike up.  I was pleased because I didn’t have to chase the stock to buy it.

Take a look at the daily chart below:


Did you see how price kept bouncing off the 79SMA as well as the 89XMA?  When both 79SMA and 89XMA are coming close to each other, the support is even more effective per my observation. 

I was able to buy some at low $17.xx before people start to take notice that the revenues stream from GTAV has ONLY just begun (my opinion only of course).  There are still money coming in for the computer PC version that has yet to launch.  There are about 136 million units of current consoles of XBox 360 (59.4 million) and Playstation 3 (77 million) out there with only a little over 12% of these console owners who have already bought the GTAV (based on $1 billion dollars sales divided by $59.99 retail price).  With word-of-mouth going on how great the game is, I’m betting another 7-8% of the uncommitted console owners will eventually buy the game between now and X’mas time.

I’m not so sure about the sales on the new consoles XBox One and Playstation 4 since $TTWO’s Rockstar has not announced any plans to develop the game to support the new consoles.  But the lack of sales on these new consoles can be made up by the revenues stream from the online version of GTAV which will be launching in October.

Take a look at the monthly chart below:


From the monthly chart, you can see that there is a breakout from May 2011 high.  Remember, the longer the time-frame (monthly in this case), the more prominent is the breakout.

Can $TTWO restores its former glory by retaking $27.95 achieved back in 2008?  If the money keeps on dropping by $TTWO door with continuing sales of GTAV, I believe it can.

In other words, selling on news may be premature due to $TTWO surprisingly strong sales on its new GTAV game.

My 2 cents.


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Don’t underestimate the services offered by $CERS

I’ve been accumulating $CERS again recently after a rough start earlier in the year.  This time, I think I will just hold it for the fundamental reason that, in my opinion, the services offer by $CERS’ products may become a standard requirement for all blood banks in the future.

Why not?

As our population grows, it increases the need for more blood in the blood banks.  By utilizing $CERS products, blood banks can eliminate the risk of contaminated blood.

It is this simple.

European countries are already using $CERS’ products.  Cerus is now waiting for FDA to approve the use of its product in the US.  What is the odd of FDA disapproving it when the products have already been in use by other countries?

In summary, there is a large market in the US for Cerus to tap into once FDA gives its nod.  Thus, the risk in this play is really the decision of the FDA.  Oh wait, this is nothing new here in the land of biotech…

But then I’m willing to wager that the FDA approval of Cerus product is as “fill in the blank” as approving $AMRN for their mid-trig (200-500) level use.

Now you see why I’m betting on this one, eh?

Take a look at the monthly chart below.  I like to see the $10 target reach in the early 2014 if not sooner.


Today price action took out $6 resistance; naturally, I added a bit more because of this breakout.

My 2 cents.

Below is information from $CERS website on how its product works:


The INTERCEPT Blood System for platelets and plasma employs the unique properties of our amotosalen HCl molecule to block the replication of DNA and RNA, preventing the proliferation of susceptible pathogens. For red blood cell pathogen inactivation, a similar treatment process has been developed using a different molecule called S-303.

Platelets and red blood cells are not inactivated by the crosslinking process because they do not require nucleic acids to function.  Plasma is not inactivated by the treatment because it is an acellular product (proteins and liquid).

Controlled Reaction
The interactions of amotosalen and S-303 with DNA and RNA are highly specific and occur with high frequency even at low concentrations of nucleic acids (Fig.1).  Once inside a pathogen, the compounds dock in between the nucleic acid base pairs.  Upon illumination with ultraviolet A light (amotosalen) or a change in pH (S-303), an interstrand crosslink is formed, “locking” the DNA or RNA together so that it can no longer replicate.  These reactions require UVA light or pH change, and will not continue in the absence of these conditions.

 Figure 1 

Broad Spectrum of Inactivation

The crosslinking activity of amotosalen and S-303 is not limited to particular nucleic acid sequences or specific families of pathogens, so unlike testing procedures this blood safety method does not rely upon advance identification of potentially harmful organisms. The replication of a broad spectrum of viruses, bacteria and parasites, as well as leukocytes, can be inactivated with these treatment processes.

– See more at: http://www.cerus.com/Products/how-intercept-works2/default.aspx#sthash.66Z5KwFt.dpuf

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A case for the $KNDI Dec $7.50 Call

Yes, I bought a boat load of this calls this morning.  Here are my reasons:

  1. – On September 17th, the Chinese Ministry of Finance announced the long anticipated renewal of China’s New Energy Vehicle (i.e. electric vehicle or EV) subsidies.
  2. – China’s first car-sharing scheme starts in Hangzhou
  3. – JINHUA, China, Aug. 9, 2013 (GLOBE NEWSWIRE) — Kandi Technologies Group, Inc. (the ‘Company’ or ‘Kandi’) (Nasdaq:KNDI), today announced that the construction of pure EV smart vertical parking and charging facilities for public EV sharing system (the ‘Project’) is right on schedule. According to the updated progress report, there will be five pure EV smart vertical parking and charging facilities completed in the coming September. By the end of 2013, 30-40 pure EV smart vertical parking and charging facilities are expected to be built in Hangzhou City. In a year from now, 5,000 to 10,000 Kandi pure EV ‘JNJ6290EV’ model and Kandi-Geely co-developed Brand ‘JL7001BEV’ will be deployed in Hangzhou City based on the progress.
  4. – The pilot project for Public EV sharing project is very well received by Jinshan District of Shanghai and the local government is in the process of the location selection. The trial operation of Shanghai’s public EV sharing system is expected to be launched before the end of 2013.

Notice that on point 3 and point 4, if business is progressing as planned which I’m betting that it will, $7.50 will be easily taken out before December comes around.

Chartwise, the daily chart looks like a cup & handle breakout is about to happen as soon as the $5.72 high is taking out.


Of course, this is a highly speculative play where if there is no progress in the business development per above, you can lose all your option premium.

My 2 cents.

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Triple-bottoms play for $NUGT

Take a look at the daily chart below.


Can you see the “triple-bottom” with a slight angle to the upside on the trendline?  This triple-bottoms can only be confirmed if price does not penetrate the low of Sept 13th.  For me, this represents a low risk trade.  I bought a starter position today with a GTC hard stop below the Sept 13th low.  Let’s see if I can hit the ball over the park “again” this time.

My 2 cents

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$KNDI – an alternative “catch-up” play to $TSLA

$KNDI has entered the EV market in China by forming a joint venture with a subsidiary of China’s #1 manufacturer of passenger vehicles, Geely Holdings (GELYF) (HK.0175) to form Zhejiang Kandi Electric Vehicles Investment Co. in Zhejiang Province, China.

There are plenty of due diligences “analyses” that cover both the pro and con of investing in $KNDI.  Take your pick.  I’ve picked mine and is currently long on $KNDI.

If you follow my twitter activities, you know I’ve been accumulating $KNDI since last Wednesday.

Yes, I know what you are going to say, “What?  Another Chinese company?  You’ve got to be kidding!”

I kid you not! (grin)

Take a look at the daily chart below:


Price has taken out the 79 SMA today as well as the upper band of the Bollinger Bands.  These two breakouts combined together formed a powerful momentum in my book.

Take a look at the weekly chart below:


Look at that V-shape bounce from both the 79 SMA and 89 XMA.

Fundamentally speaking, here is a good read from someone who has done a far better job researching this company:

Kandi Technologies: Exceptional Strategy For China From An Urban Planning View

By all mean, read up on the comment section to learn both sides of the arguments b/w the bull and bear.

In my opinion, this is a highly speculative stock that has the potential to play catch-up to $TSLA if you’ve missed that train.

My 2 cents.


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Go! Go! $GOGO

I think this is going to be another winner from The Fly.

Fundamentally speaking here is why I like this stock:

Aircell Introduces In-Flight Calling and Texting for Personal Smartphones

Gogo Text & Talk service allows passengers to call and text via Wi-Fi in flight, using their own smartphone and mobile number
Company also adds voice capabilities to existing Gogo Biz service

BROOMFIELD, Colo., Aug. 28, 2013 /PRNewswire/ — Aircell (GOGO), a leading provider of in-flight connectivity equipment and services to the business aviation market, announces that its Gogo Biz service will expand to include voice capabilities, beginning October 1st. Gogo Biz was originally launched in 2009 as an Internet-only service in the business aviation market.

Do you remember how expensive it is to use the phone from the airplane?  It is almost like a legal highway robbery.  Now, if I’m paying for the internet service inside the airplane, I like the idea that I can use my smartphone to “call” someone without having to pay thru my nose with the airplane phone.   In other words, I don’t mind paying for the internet cost as long as I can also use internet voice capabilities to call someone using my smartphone. We are not talking about Skype phone here, we are talking about using your own mobile phone number. Below is an excerpt from the press release…

Gogo Text & Talk. Your Own Smartphone, Your Own Number
Gogo Text & Talk is an exclusive new service that allows passengers to use their own smartphones for calling and texting in flight – with their own mobile number.

I believe once $GOGO turns on this voice capabilities starting October 1st, revenues stream will double.

Take a look at the daily chart below:


I can see a cup and handle break out in the making.  I’m going on a preemptive strike by buying $GOGO today looking for an “imminent” breakout soon.

Oh yeah, thanks to The Fly for making me aware of $GOGO.

My 2 cents.



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Can $CERS break out of its long-term resistance?

I’m betting that it will.

Take a look at the monthly chart below:


Currently, price action is bumping against the 89xma as well as the resistance that go way back to the high of April 2004.  However, from the look of it, price action has been “grouping” upward on a monthly basis recently.  I’m sure all it takes now is a little nudge and price action will just explode skyward.  Skyward!  Uh Oh!  You’ve caught me using the “pumping” word…

Anyway, my interpretation is that the chart looks bullish.

Below is the weekly chart:


This week bar is very strong which may be setting up the stage for next week big push to break out of the monthly resistance.

Below is the daily chart:


See how it bounces off near the 79 sma and the 89 xma?  The 5 sma is now crossing over the 15 sma.  All of these technical signals just give me more confidence to add more today.

Fundamentally speaking, instead of rehashing of what others have done, I’m going to paste an excerpt from (gawd forbids) a contributor in Seeking Alpha…

GZ: Cerus Corp. (CERS) is a very interesting company. It developed a blood pathogen inactivation system, called INTERCEPT, for all three products derived from blood donations – platelet concentrates, plasma and red blood cell concentrates. A key milestone that the company recently reported was an agreement with the FDA allowing it to file for premarket approval (PMA) for the platelet concentrates in the U.S. without having to do another phase 3 trial. Assuming an approval, this shortens the time to commercialization by one to two years.

Notably, the company is already selling its INTERCEPT Blood System in quite a few countries, mainly in Europe. All of Switzerland uses the product for platelet concentrates. Much of France uses the system. A number of centers in Germany, Belgium and other countries use it. INTERCEPT is a revenue-generating product for an unmet need because emerging pathogens, viruses in particular, might be penetrating the blood supply, while bacterial contamination of platelet concentrates, though rare, still kills patients.

Once the authorities that regulate the blood supply look at INTERCEPT, it becomes a no-brainer. However, these are typically bureaucratic government organizations, and sometimes it takes a crisis, as it did in Switzerland with the untimely death of a child who was administered platelet concentrates contaminated with bacteria, to get INTERCEPT approved and used.

There’s no real blockbuster here in the sense that the company will end up with billions in revenue from this product after it gets more approvals. But Cerus is a relatively risk-free and an incrementally positive investment that I see growing steadily year over year. I think approval in the U.S., possibly in the second half of next year, would be a strong catalyst for the stock.

TLSR: Could these systems be used in the field, such as in developing countries, as easily as they could be used in a modern clinic?

GZ: Yes. Basically, INTERCEPT is a kit with bags for treatment and for storage of the final product, and what’s called an illuminator, an ultraviolet light that catalyzes the reaction between the additive and the DNA of pathogens, which are prevented from replicating. All that is needed is an electrical supply and other basic equipment for blood handling-refrigeration for plasma and red blood cells. Platelets are kept at room temperature. The really big markets are the big blood centers-the American Red Cross, the New York Blood Center and others.

This time around, I’m going to “try” to sit on this position for a longer-term hold…

My 2 cents.


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