News : 🧬 Fusion Genes...

Monday, March 13, 2023

🧬 Fusion Genes...

March 13, 2023 | Read Online

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Occasionally I come across stock ideas from people in my network that I want to share with you.

Sometimes they look overpriced to me, or they just don't fit the criteria I look for, so I pass on mentioning them to you.

But when I started digging into Avalon GloboCare Corp (ALBT) over the weekend, I knew it was something I wanted to share with you!

Trading near the lower-end of the recent range at just $2, I think ALBT is definitely something that you might find interesting right now.

Especially when you look at the price chart over the last few months and see the potential ALBT has actually had for major moves:

☝️ Even Yahoo Finance is full-blown bullish with short-term trading indicators right now…

One of the big reasons that the stock can make such violent moves is that it has a very small "float" – that is, the amount of shares that are actually able to trade at any time.

MarketWatch reports that there are only 3.2 million shares in the float right now. (2)

After watching the crazy, 85% move higher we just saw on all-time record volume for the stock last week, I would bet there is a sizable amount of "shorts" out there.

One of the things I found most interesting is that ALBT recently announced that it has deployed a breakthrough "fusion gene map technology" to be used for the goal of developing companion diagnostic kits and devices to enhance personalized clinical management of leukemia patients.

Their CEO said, "Fusion genes are crucial in the diagnosis and treatment of leukemia. All well-known fusion genes are founder variations and constitute critical causative factors and can serve as important indicators of disease diagnosis." (3)

Also, ALBT has jointly filed 16 patent applications, co-invented with key strategic partners, including a top-5 U.S. university, a leading education and research center in Europe, as well as a premier multi-national developer of cellular therapies in the field of oncology. (4)

A few months ago, ALBT announced a new study applying artificial intelligence (AI) enhanced protein design "QTY Code" technology. The method is expected to accelerate development of therapeutic monoclonal antibodies to treat cancer. (5)

On Seeking Alpha, I read they recently announced a warrant buyback program. They reported, "ALBT announced on October 21 that the company plans to repurchase all of the 1.7M outstanding warrants for approximately $1.4M. Of note, the warrants were issued to institutional investors in a direct offering back on April 25 this year. Looking ahead, the warrant repurchase will be completed by November 8. At that time, all of the outstanding warrants will be canceled." (6)

Canceling warrants sounds like a great move to me, as that would limit the amount of future dilution from shareholders if the stock makes a big move up.

Seeking Alpha also seems pretty bullish on the stock too. As a tiny, $2 stock, there aren't a lot of articles about it, but these were very bullish when I read them…

One of the more interesting pieces I read talked about a new definitive agreement ALBT has to acquire a lab with a sizeable footprint. This sounds like a great move for a small therapeutics company.

In another release, I put the pieces together regarding the major acquisition they just closed. It said, "ALBT signed a definitive agreement to acquire a 40% interest in Laboratory Services MSO, LLC, a leading reference laboratory with over 600,000 tests completed since inception.

It continued, "Our goal is to take advantage of a unique roll-up opportunity within the highly fragmented market for laboratory testing and services. By targeting laboratories with exceptional performance, positive revenue track record and niche-market advantage." (7)

You can read the full article from this page.

And it just keeps going!

On TipRanks, I wanted to see what their technical outlook has been and sure enough, they were rating it very favorably recently…

I just see "buy ratings" across the board. Maybe they know something?...

Looking into the market for ALBT, the company has some pretty impressive numbers to share on that. They reported that the global leukemia therapeutics market is expected to grow from $13.88 billion in 2021 to $15.27 billion in 2022 at a compound annual growth rate (CAGR) of 10.07%. The leukemia therapeutics market is expected to reach $20.77 billion in 2026 at a CAGR of 7.99%. (9)

And finally, I grabbed some information about the odds of future moves from Tickeron (of course, you can never predict with certainty where a stock will go, I just wanted to see how things have performed historically).

Bullish Trend Analysis

The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where ALBT's RSI Oscillator exited the oversold zone, 23 of 27 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend: 85%.

The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.

Following a +60.75% 3-day Advance, the price is estimated to grow further. Considering data from situations where ALBT advanced for three days, in 175 of 212 cases, the price rose further within the following month. The odds of a continued upward trend: 83%.

ALBT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. (10)

I was pretty blown away by the potential for ALBT after doing my homework this weekend.

For a $2 stock that is trading near key-support levels and has a history of major advances, I think this is definitely a stock you should be watching this week.

I hope you do your own homework this week and let me know what you think about ALBT. A great place to start where you can get more information and learn more about the opportunities and risks would be on the company's website.

Take care!