AIkido Pharma Inc (AIKI)

[investora2z]

The recent surge in price from $6.5 to $13.9 has been backed by volumes. This is basically a takeoff from the levels at which equity funds were raised last year. Despite this, the stock is still down by around 30% during the last one year. Fundamentally, the average P/E of the industry is 18. The average growth in earnings for SPEX is 35%, which is twice the industry average. Industry potential is very well known as SPEX is in the field of developing drugs for treating diabetes, metabolic syndrome and atherosclerosis. The pressures on cash flow will reduce after the recent sale of the consulting wing. SPEX is now a purely drug development company and will concentrate on research and development. The 12 month consensus estimate for the price is around $20 which itself is a 50% growth from the current levels. Company is actively pursuing funding for growth by selling stake. Appointment of Harvey Kesner, as interim Chief Executive Officer signals this. Kesner, is a practicing corporate and securities attorney who is known to be actively engaged in assisting start-up and emerging businesses. He is actively involved in representing investors and companies in new & emerging fields. All this put together, and also the recent increased investor interest, augurs well for the growth of the company and, consequently, its stock. The $14 level has to be crossed convincingly and then the $16 ceiling exists. Then the one year target of $20 will be within reach. However, it is also possible that there is some correction and consolidation after touching $14. This will be very good for the stock as it will increase its technical strength. A breather is good. However, if the uptrend continues, it is a signal of some underlying fundamental current. One should keep one's ears open for some buzz on fundamental triggers.