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Very tall wick. I bet it closes at .049
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It's possible, since they're doing things that will draw the chart. Tuesday and Wednesday of last week, about 30 million shares changed hands and on both days the price closed low in the daily range, which would drag Acc/Dist downward even though *somebody* bought 30 million shares.
If MMs stealth accumulate and then take it down a level, they would lose money compared to just taking it down in the first place and buying lower. I guess it depends how aggressive retail is buying and holding at each lower level. If retail never lets up (or only increases as the price descends) and MMs want to accumulate, they'll have to grab shares when people are panic selling during cliff drops.
Alternatively, as long as retail brings new money and ENZC keeps dangling a carrot without following through, MMs can short this perpetually and make profit as long as they control their risk. Will they get caught off guard when ENZC finally has a big news drop? Are they counting on there being no such catalyst? Are they stealth accumulating to hedge against that possibility?
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Accumulation Distribution takes volume and price into account, and there's a multiplier that increases the effect depending on if the price closed high or low in the daily range.
The multiplier in the calculation provides a gauge for how strong the buying or selling was during a particular period. It does this by determining whether the price closed in the upper or lower portion of its range. This is then multiplied by the volume. Therefore, when a stock closes near the high of the period’s range and has high volume, it will result in a large A/D jump. Alternatively, if the price finishes near the high of the range but volume is low, or if the volume is high but the price finishes more toward the middle of the range, then the A/D will not move up as much.
The same concepts apply when the price closes in the lower portion of the period’s price range. Both volume and where the price closes within the period’s range determine how much the A/D will decline.
https://www.investopedia.com/terms/a/accumulationdistribution.asp
They have to keep mAbs operations under NDA if it risks compromising opportunities for patents. That doesn't mean mAbs operations have stopped. We should still get news about production, clinical trials, etc when the time comes for that.
ITV-1 is already patented so we should still get news about that.
If they ever finish the audit they could attempt to uplist to a more regulated OTC tier (reducing certain investor risks).
If they can afford to push their in-vitro diagnostic AI platform and veterinary mAbs, they could probably get those to market faster than human mAbs.
The market will probably agree to trade at a lower level for awhile, but the story isn't over yet. I'm with the commenters who feel bad recommending this to friends and family, since a lot of those people may not be able to wait this out, and sell for a big loss.
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They haven't been working for free.
On October 20, 2020, the Company entered into a three-year employment agreements with four of its executive officers. Each executive officer is entitled to a base salary of $120,000 per year and 5,000,000 stock options. (source page 20)
Not everyone flies by charts in the OTC and that's understandable.
Here's the weekly chart (intraweek since it's only Wednesday!) after today's close.
The biggest notes are:
- Trading escaped that triangle range temporarily, but there was no rally or news catalyst to go higher. The general interpretation of the triangle pattern is bulls are steadily losing steam as bears crush prices toward a strong support line. Now that we've reached the triangle tip, bulls may be exhausted and bears may take over down to the next support line.
- This week had a company update that wasn't well received by all investors, and so far the market is reacting bearishly.
- This is also the week the chart is hitting what they call a Death Cross, the downward crossing of a slower moving average (200 week) by a faster moving average (20 week). I marked it on the chart with the pink arrow. Investopedia says the Death Cross is sometimes followed by a strong short term price rebound. https://www.investopedia.com/terms/d/deathcross.asp
- Weekly MACD was about to cross to the upside, but if selling continues this week it may reflect down for another bear phase (ie weeks of red). We have to wait until the end of the month to confirm on the weekly chart so that this candle and the next candle can fully form. It's so close to crossing, it could still cross next week which would be more bullish.
- Is there a known news catalyst that might hit soon and create a buying frenzy? ENZC said in its quarterly it won't be communicating any more details about mAbs plans or arrangements while there are patents pending. Some of ENZC's other ventures seem to be delayed. MMs may now be able to short this with lowered risk and keep the market moving.
I did the analysis of some of ENZC's older filings back here:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=168639909
And everything else I referenced comes from the new quarterly:
https://www.otcmarkets.com/otcapi/company/financial-report/344142/content
There's a lot of newer company activity that may attract investors or financing partners. Applying their AI to diagnostic tests, applying their AI to veterinary medicine (shorter time to market than meds for humans), and the new IgA1/2 Clone 3 mAbs to name a few. Any one of those ventures could suddenly stick, and bring enough money to avert a R/S & dilution. We don't know all the details about Series B and Series E, maybe investors have to hold those until a company milestone and can't convert anyway...
But taking what we do know, there are a lot of convertible preferred shares with currently no room to convert. How can they make more room?
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Compare to the average volume for your charting period. I use average daily volume. It's common for there to be high volume partway through a day and low volume the rest of the day.
They have to do a R/S (or dramatically increase A/S) to allow preferred shareholders to convert, or those are effectively dead shares (not fair to those investors). If they can't secure outside funding, they'll also be hard pressed to raise meaningful money thru dilution with the current O/S nearly maxed and the PPS decreasing. For a R/S, the question is when. (There may be stipulations that preferred series can't be converted or sold until milestone X or Y and ENZC may acquire sufficient funding in the meantime.)
ENZC added 1,600,000 Series B and 2,500,000 Series E according to the latest quarterly disclosure. From earlier analysis it appears Series B converts to Common at 1:10. Series E also converts to Common but we don't know the rate.
There are 447,180,000 outstanding Series B according to the latest quarterly. A potential 4.47 Billion new Common!
Series E still has accounting discrepancies as they're only showing 2,500,000 total outstanding on the latest quarterly, when earlier filings showed this anywhere between 2,500,000 and 25,000,000 previously outstanding, with 7,500,000 in new issuances also thrown around in one filing.
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Speculatively, Yes!
I don't think ENZC can work with so many universities, bio partners, patent offices, Samsung etc with both mAbs and ITV-1 and be puffing hot air. Not saying it's too big to fail, just that pseudoscience or a pack of lies would unravel after a certain point. The presentations I've seen personally look sound. The AI pattern matching being disruptive to the medical industry is logical. The patent-first strategy makes sense. So yeah, I think ENZC has incredible potential if they survive into the long term.
Will they beat competitors to the patents?
Will they beat competitors to the cures?
Did they really find viable cures?
Will their tech still be any good if they wait too many years to use it?
Will they run out of money before they successfully create revenue?
Will they trip over themselves on the way?
That's why it's a speculative yes!
Thanks! & I want to point this out as well:
Now we know the NDAs are because of ENZC's international patent applications. This implies we won't be getting any more news with certain specifics, until the day such news drops, and that we'll likely be seeing PRs with vague and open-ended language that leaves room for speculation and multiple interpretations. This is a big change from the last couple years, where they more or less told us who they're working with & what they're working on. IMO this is nearly a worst-case scenario for ENZC's share price in the short and mid term. What do you think?
Maintenance of strict confidentiality is essential to preserving intellectual property rights (patent rights) which are now being sought and will be sought in the future. Premature disclosure of information can bar the right to seek patent protection at a later date. The Company is not able to share specific details regarding arrangements regarding these NDAs. (source page 19)
As of August 19, 2022, the Company has three (3) pending Patent Cooperation Treaty (PCT) Patent applications covering its fullyhuman monoclonal antibodies targeting the CoronaVirus and HIV. Additional patent applications are being prepared to cover the numerous viruses against which the Company plans to produce monoclonal antibodies. (source page 18)
If you want to file a patent application in five or more countries, consider a Patent Cooperation Treaty (PCT) application. This gives the applicant the right to seek action in countries that are members of the treaty for longer than the 12-month period outlined in the Paris Convention. The PCT application isn't a patent application itself. It just allows you to file a single patent application one time to flow through several countries. Within 30 to 31 months, you must file a patent application with each country's patent office.
Filing for a PCT application also gives you 18 to 19 months to decide which countries you want to apply for a patent in. (source)
Glad you're tickled by the choice of words. :)
Life is complicated. It's a valid and common PR strategy to only announce progress and avoid broadcasting setbacks a company truly believes are temporary. I don't know if that's what happened, or if the guys at ENZC are masterful con men -- and they DID disclose their setbacks on the quarterly report disclosure; hence I stopped at "impression of deceit."
One thing's for sure, if they cry wolf too many times, their reputation will be in the dumpster. I think it's safe to say there's a growing market sentiment to "put up or shut up" about perpetually overdue stuff like the audit.
The way I'm reading it, they found a way to spin off their existing mAbs into a second potential product to treat HIV in a different way/at a different layer.
The IgA1/2 Clone 3 Antibodies provide "immunological defense against an initial exposure to HIV virus at mucosal surfaces" (source) and the older Clone 3 works to "neutralize the Clade C isolate found in Africa, China and India" and also the "Clade B isolate that is predominate in North America and Europe" by targeting HIV immutable sites. (source) I think "mucosal surfaces" is key and that the different classes of mAbs are two separate vectors.
Covid shares some characteristics of HIV so cross-application makes sense. I get the impression ENZC is trying to corner the market with patents rather than delivering the cure, though the world would get the cure in due time whenever ENZC licenses the mAbs.
Now this new info today. Are they abandoning the original mabs and modifying the original Clone 3 to this new version or is this going to be a completely separate version of Clone 3, where they will introduce a preventative Clone 3 as well as a “cure” Clone 3 for people already infected with hiv?
They talk about finalizing the audit at the end of Page 9 in the quarterly report filed 05/15/2022:
https://www.otcmarkets.com/otcapi/company/financial-report/332996/content
There are no disagreements with the auditing firm and the Company is working closely with all parties to finalize the audit in accordance with PCAOB standards.
The Company’s audit is being finalized, and the Company fully expects to be able to acquire the funding necessary to complete its multiple programs.
Page 18:
https://www.otcmarkets.com/otcapi/company/financial-report/344142/content
Enzolytics has created Class switched IgA1/2 Clone 3 Antibodies. This therapy will expectedly provide a protective immunological defense against an initial exposure to HIV virus at mucosal surfaces, such as occurs in the passage of the virus from mother to child through maternal breastfeeding. HIV mucosal infection plays a critical role in virus transmission and AIDS pathogenesis, affecting mucosal surfaces of the gastrointestinal tract early on by depleting CD4+ T helper cells independently of the virus transmission route. Although current anti-retroviral therapy helps control HIV infection in most patients, it cannot eradicate the virus from the human host. Therefore, the development and use of HIV microbicides (i.e., topical pre-exposure prophylaxis) have become the most promising approach to preventing HIV transmission. Thus, the development of Class switched Clone 3 IgA1/IgA2 is highly significant.
#ENZC has created "class-switched" IgA Antibodies for #HIV.
— Gaurav Chandra M.D. (@drgauravchandra) August 22, 2022
Additionally respiratory virus, #SARSCoV2 may require higher levels of mucosal immunity to block transmission hence we are producing IgA Antibodies for SARS-CoV-2. #mucosalimmunity #sciencewillwin pic.twitter.com/CbkrbiMOJA
#ENZC has created "class-switched" IgA Antibodies for #HIV.
Additionally respiratory virus, #SARSCoV2 may require higher levels of mucosal immunity to block transmission hence we are producing IgA Antibodies for SARS-CoV-2. #mucosalimmunity #sciencewillwin
Thanks! Spotted some tidbits:
Page 5:
Use the chart and additional space below to list and describe all outstanding promissory notes, convertible notes, convertible debentures, or any other debt instruments that may be converted into a class of the issuer’s equity securities.
Check this box if there are no outstanding promissory, convertible notes or debt arrangements: x
The Company considers the forthcoming patent protection highly significant in view of the following facts:
[...]
To accelerate and fully execute the successful production of the multiple monoclonal antibodies, the subject of the Company's intellectual property (specifically the numerous monoclonal antibodies (mAbs) targeting both human and animal viruses), the Company continuously engages with numerous entities to accelerate its progress toward production, testing, and delivery of successful therapeutics. Entities with whom the Company is working include other Biotech Companies having:
[...]
As to each of these entities and those with whom the Company currently works on an ongoing basis, the Company has entered into NDAs (Nondisclosure Agreements) necessary to preserve and protect the Company plans and intellectual property being discussed and exchanged between the parties. These contractual restrictions are critical for the Company and its partners. Maintenance of strict confidentiality is essential to preserving intellectual property rights (patent rights) which are now being sought and will be sought in the future. Premature disclosure of information can bar the right to seek patent protection at a later date. The Company is not able to share specific details regarding arrangements regarding these NDAs.
Thanks for collecting those!
Toxicology studies are ongoing and near completion in the Company’s partnering California lab. The results of these tests will be reported as they are completed.
Simultaneously, the ITV-1 therapeutic is proceeding through the necessary multi-stage production process in the Company’s partnering lab in Europe. The current ongoing production of ITV-1 will be used in clinical trials conducted under the EMA guidelines. Early production of ITV-1 will be submitted to health care entities in Africa, where testing and use of the therapeutics are expected to be made possible before EMA approval.
Enzolytics IPF Immune will be available in numerous sales outlets throughout the U.S. Delays in producing sufficient quantiles for the market are being addressed. These delays have provided time for increasing production capability to meet demand. The company’s market research has indicated significant demand for IPF Immune.
Regarding marketing, the Company has engaged a marketing specialty firm that will use "computer analytics" to target individuals who are specifically searching for a nutrition supplement with the properties of IPF Immune. Such focus will greatly increase sales of this new product while reducing advertising costs.
Once produced, the monoclonal antibodies are tested for binding and neutralizing activity. These characteristics are confirmed by the Company's partnering laboratories, Genscript Labs, and the University of Strasbourg, France. After confirming antibody activity, the Company's CDMO partner Samsung Biologics produces recombinant antibodies in their proprietary, FDA-approved stable CHO cell line suitable for Clinical Application.
The plans are in place to proceed with animal studies to demonstrate the in-vivo efficacy of the monoclonal antibodies in partnership with European partners.
The Company is producing fully human monoclonal antibodies against these claimed [HIV] sites. The International Patent Office has now confirmed these discoveries to be novel and inventive, capable of being patented and claimed exclusively for a 20-year term in every member country under the Patent Cooperation Treat in which the Company pursues these claims.
Due to the novel nature of the Company’s discoveries, the Company fully expects the same favorable results in the PCT Patent Office for its pending applications covering epitopes (binding sites) on [a bunch of other viruses.]
The Company believes that its extensive patent portfolio will provide a return on investment through partnering or licensing technology covered by multiple international patents.
Given the large number of therapeutics being advanced by Enzolytics, the Company is focused on raising the necessary funds for the production and sale in the U.S. and abroad of IPF Immune, final development of its anti-HIV ITV-1 therapeutic, accelerating the development of multiple monoclonal antibodies for human therapy, and production of animal monoclonal antibodies. The Company’s audit is being finalized, and the Company fully expects to be able to acquire the funding necessary to complete its multiple programs.
Management has stock options that fully vest on October 20, 2022. ENZC may also try a reverse split in the future to create more flexibility for fundraising. Would be interesting if big PRs, share restructuring and dilution all happened together.
Expecting numbers to be more zeros, but there may be interesting info in the footnotes. I doubt the company will be revealing anything about NDAs in this filing.
Not everyone flies by charts in the OTC and that's understandable.
Here's the daily chart after today's close, with some extra annotations.
Commentary:
- The overall pattern is a Descending Triangle which is bearish. We are now reaching the tip of the triangle, where the market must make a decision to break out of the pattern or get crushed down to a lower level. The interpretation of this pattern is that bulls are steadily losing steam as bears crush prices toward a strong support line. Trading below the dark blue 200 day moving average line helps confirm.
- There's a tiny red arrow on a red engulfing June 15 candle when the Fed last hiked the interest rate. They did the same thing today, by the same amount. Not sure if that'll be a factor tomorrow or not.
- RSI is very low and supports a breakdown.
- MACD just crossed over into bearish territory (red ticks) after a long weak series of green. You can see the downtrends that accompanied other such crossovers on this chart.
- Today's candle closed at the bottom of the Bollinger band (pink dashes) after reflecting off the midline. This makes it a retest and often breakouts or breakdowns happen on the retest.
- Bulls can try and rally since this is pretty much a triple (quadruple?) bottom in the mid .05s. Would help to have a significant news catalyst to help establish a new long term trend. People were anticipating news around the NDA here in July and July is ending with the company broadcasting that they intend to "work hard in silence." Petty bearish.
GLTA <3
All, please review the Handbook using the link at the bottom of each page on iHub. https://ihwiki.advfn.com/index.php?title=Handbook#Deletion_of_Posts . Posts must adhere to these guidelines to avoid removal.
This post is about moderation activity, and is thus off-topic as well. I'll let one of the other admins make the call to leave or remove it.
Thanks!
I get "Our brand new site is coming soon" now at https://enzolyticstherapeutics.com/
Point being the Bulgarian and European elements, whether they're loosely connected 'licensing partners' Rosetta, ITV-1 production partners Danhson, clinical trials partners Clinic Design, financing partners IMBL - these could all technically be called global partnerships in the context of that tweet.
I'm inclined to believe there are other newer partners we haven't discovered yet, and maybe there are - but we've heard a lot of exciting words from ENZC investor relations in the past months that haven't turned out to mean what they sounded like.
Their partnerships with Rosetta and Samsung are both global partnerships. So he could be speaking about status quo as easily as newer deals in the works. In this case, their policy of working hard in silence is not doing us investors a service since we're left guessing what progress the company is making.
This is great news whether ENZC keeps IR in house, or the new house comes with its own Investor Relations team. A necessary step in either scenario. Also removes future ambiguity whether the choice of hashtags in circulation comes from Tom or ENZC.
Interesting, so the NDA apparently wasn't preventing tweets this last month, nor tweets that mention "global partnerships". They just didn't tweet during that time.
Curious to see the updated website!
Keep watching the O/S for any new conversions or dilution, but at last count there were 380,289,565 restricted Common that were already issued and could be flipped to Unrestricted and sold at any time, which wouldn't increase O/S. I think there is a lag (several days? next reporting period?) before restricted/unrestricted numbers would be reflected in the OTC market totals? Either way in 2022 up to 380 million shares could potentially enter the market.
With each increase in Float the total Restricted shares decreased in the same amount. As of December 31, 2021 there were 451,289,565 restricted shares remaining of the 2,797,935,953 originally issued prior to October 15, 2020. Approximately 71 million of these restricted shares are part of a lawsuit filed by the Company. The remaining 380,289,565 have met the SEC requirement for removal of the restrictive legends but have either not elected to or been unable to obtain an opinion letter acceptable to the transfer agent or are held by Officers and directors of the Company.
The valuation is whatever the gamble is worth to speculative investors in light of the current market dynamic and other potential gambles that may pay off sooner.
A valuation gets more concrete when ENZC delivers on anything in its potential pipeline, transforming speculation to certainty.
Here's a starter pack:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=169051258
Looks like once or twice a month he's sharing curious hashtags and trying to keep Twitter buzzing. I see mention of an uplist in October 2021 so it's interesting he's talking about a "fully reporting company with an audit" today in regards to #buyside investors. Maybe they're close to finally delivering the audit -
- or at least that seems to be the messaging.
Good info, thanks.
When I sifted through the filings a few months ago, there are a lot of missing numbers and some outright contradictions. Maybe an experienced audit team can't sign off on those inconsistencies without requests for additional documents, and a lot of slow back and forth. But didn't this process start in early 2021 and isn't the audit only for a 3 year reporting period?
ENZC told us repeatedly they believed the audit would be completed soon. They said this after the legal cases were known and ongoing, so presumably the lawsuits wouldn't have an impact. What's changed since the last time they promised the audit that could have redirected the company's plans, or was it not being forthright in the first place?
If the holdups are still Malone Bailey's fault, as ENZC claimed in a past filing, it's pretty important to see some kind of status report and maybe a list of steps ENZC is taking with MB to address the delays. (I've been away for a few weeks so maybe they tweeted something and I missed it?) People make investment decisions based on the company's statements.
Otherwise the continuing silence seems to suggest something bad! Would be nice if the audit was done and the NDA was something like an acquisition deal that would make it pointless to uplist, but there's a lot of caution flags here too.
Great post and some fresh DD, thanks for sharing.
Samsung + ENZC is one of the possibilities we'd all love to see. Your assessment makes sense to me.
7,831,465,506 O/S tells the story in a nutshell, when accompanied by so many pumping tweets that are focused on ticker performance instead of the company's innovations.
For added perspective, look at the action on this 4h chart. Around 4 billion shares (!) traded at .006 and above since Tuesday the 14th. Day trader's paradise at the top, as strong market demand would push it up, then an endless supply of shares would appear and crush it down, rinse repeat until retail money dried up.
Curious to see how it performs today. At these lower levels there's still a lot of buyers.
Short interest settlement date is tomorrow (Wednesday). Also the market will be closed on Monday the 20th in observation of Juneteenth, which is new. Curious to see if the MM's get more aggressive in the next couple days or if investors can rally and push this into the .08s+
Do you know if orders from a few weeks ago have been filled or are people still stuck waiting? OneLavi is still showing Sold Out.
Good read, thanks.
I recommend doing some digging on these boards and elsewhere for better DD, and don't just take our word for it! IMO it's worth getting to know ENZC if you spend a lot of time trading pinks.
This looks like a real company to me, with some truly disruptive medicine in the works -- that is also prone to pumps and dumps. Some of the P&D's may be orchestrated by ENZC itself, and a lot seems to be Twitter traders & the market taking advantage of ENZC's long-play roadmap, weak communication and inexperienced management.
The company has a paid hype guy with a track record of pumping shadier stocks. They've also chronically promised stuff that they don't deliver, such as an audit & uplist and a dietary supplement that would hopefully bring the company's first recurring revenue. Whenever there's bad news they have a history of going radio silent and investors find out weeks or months later. There are many bagholders and many would rush to get out if they could ever break even.
ENZC has an ongoing drug manufacturing partnership with Samsung (for upcoming clinical trials) and once co-authored a whitepaper on AI-driven medicine with Intel. These are unusual affiliations for an OTC pink. ENZC has two very exciting technologies that are steadily maturing: monoclonal antibodies that have been greatly improved with AI analysis to target something like 20+ well known and major human illnesses, and another dozen-ish animal illnesses; and a drug called ITV-1 that shows promise in treating HIV and covid. The mAbs are patent pending and ITV-1 is already patented.
ENZC is currently under a NDA for some reason, and nobody knows why, hence the uptick in speculative hype on social media of things like a buyout or Big Pharma partnership. A slew of major deliverables are currently overdue and there are rumblings that in the next couple months things might finally begin coming to fruition. Expect to see more Twitter buzz in the weeks ahead and keep this on your watch list in case they get a surprise catalyst. GLTY
Yowch. Friday's gains already poofed on 1/4 the volume. Should bounce back later but not a fun open.
Awesome close this week! Looks like bulls rallied and pushed this off of the bottom bollinger band. RSI is higher, weekly MACD is inching closer to eventual crossover, and bollinger bands are slowly getting narrower.
Curious to see how far the substantiated rumors of an NDA can take ENZC prices next week. There's also a short settlement date on Wednesday the 15th which may mean less sell pressure for a couple days. (If the MMs are naked shorting, they can't expose that on the short report. We've often seen a decrease in sell pressure as presumably they cover and sit tight before the settlement date before starting another round of selling. I don't know if they're naked shorting, this is just a theory.)
Next week I expect this to touch the bollinger midline on the weekly and maybe rise a little above, then close in a red candle for the week. Hopefully it doesn't eat up the whole green candle. The following week the chart would support a crossover into the high band if we're still trading anywhere near the midline. Unexpected news trumps charts, so things could always move faster.
Weekly chart. Dashed pink and bold blue are bollinger bands and 20 week moving average. Dark blue is 200 week moving average.