The pullback through mid-July could prove to be a potential entry point for investors that have been watching Avalon GloboCare Corp. (NASDAQ: AVCO) and its recent developments. Avalon shares are very oversold on both the daily and weekly charts, despite the strong news flow since the beginning of June.
Corporate News Releases:
July 15th – Avalon made major announcement detailing of launching its “first-in-human clinical study.” The study in human trials is for AVA-001 for treatment of relapsed/refractory B-cell acute lymphoblastic leukemia and non-Hodgkin lymphoma. The AVA-001 drug candidate was initiated at the Hebei Yanda Lu Daopei Hospital and the Beijing Lu Daopei Hospital located in China.
Avalon’s AVA-101 drug candidate is scheduled to begin pre-clinical processing development and validation studies during the third quarter 2019. The company anticipates launching first-in-human clinical trials for AVA-101 during the first quarter of 2020. Furthermore, Avalon continues to work on accelerating clinical development of its two exosome-based oncology and regenerative therapeutic programs: AVA-201 and AVA-202.
June 10th – Avalon’s first major announcement in June came after management disclosed achieving the major milestone of bio-production standardization for its clinical-grade, stem cell-derived exosomes. The pivotal milestone was made possible through the previously-announced co-development program with Weill Cornell Medicine and Dr. Yen-Michael Hsu. Following the announcement, Avalon noted it was in the planning stages for the commercial launch of a series of over-the-counter skincare and wound-healing products using the exosomes.
“We are pleased to complete such a significant developmental milestone of our exosome program,” stated David Jin, M.D., Ph.D., CEO and President of Avalon GloboCare and Co-CEO of its subsidiary GenExosome Technologies. “As a result, we look forward to an accelerated pathway of our exosome-based clinical programs for regenerative therapeutics as well as exosome product commercialization,” added Dr. Jin.”
June 13th – The company announced plans to unveil further details on its commercialization plan for its exosome products at the Second Aesthetic Industry Conference, the largest aesthetics conference in Asia. Dr. Yu Zhou, the Co-CEO of Avalon subsidiary, GenExosome Technologies, provided the keynote address at the conference. In addition to the commercialization plan, Dr. Zhou led a session on the “Application of Stem Cell Exosomes” during the event.
“Avalon GloboCare is dedicated to assembling and integrating the premier scientific, clinical, and regulatory resources from around the world, in order to accelerate innovative and transformative cellular and exosome-based technologies, as well as their clinical applications,” stated Dr. Jin. “We are honored to lead a panel with international experts to discuss this evolving ecosystem, as well as showcasing our exosome product commercialization plan.”
June 18th – Avalon GloboCare details it is expected to be included in the Russell 3000 Index, after the annual Russell U.S. Index Reconstitution, which is scheduled to take place on June 28, 2019. This is a big deal for the company, as it will open the door to further institutional investor interest. Overall, there is approximately $9 trillion in assets that are benchmarked against various Russell U.S. indices.
“We look forward to our inclusion in the Russell 3000® Index, which we believe reflects our continued growth and the progress we are making at Avalon,” stated David Jin, M.D., Ph.D., CEO and President of Avalon GloboCare. “Inclusion in the Russell 3000® Index is expected to benefit our Company and shareholders by elevating our exposure within the global investment community.”
June 26th – Avalon announced the appointment of Dr. Yen-Michael Sheng Hsu, the founding director of the cGMP Cellular Therapy facility at Weill Cornell Medicine, to the company’s scientific and clinical advisory board.
“We are pleased to welcome Dr. Hsu to our Scientific and Clinical Advisory Board. He has been an invaluable asset in our exosome-based clinical programs for liquid biopsy and regenerative therapeutics. He also brings a wealth of knowledge, experience and leadership in cellular therapy, and has an impressive track record in both translational and clinical research fields,” stated David Jin, M.D., Ph.D., President and Chief Executive Officer of Avalon GloboCare. “Dr. Hsu’s expertise in tissue-specific exosome and cellular immunotherapy will be of significant value in supporting Avalon’s pipeline as we advance to our next phase of clinical development of next-generation CAR-T therapy as well as commercialization of clinical-grade exosome products,” added Dr. Jin.
Form 4 Filings: Insider Buying
Insider transactions disclosed through Form 4s can be important indicators for measuring management’s sentiment and outlook. Traditionally-speaking, insiders only purchase stock when they believe the market is under-valuing the company and they see greater potential for gains ahead. Insiders can sell for a variety of reasons, which can be a little more difficult to read in terms of corporate outlook. However, this is why insider buying is always something worth keeping an eye on.
For the purposes of Avalon GloboCare, Form 4s were filed on June 6th and 7th, which showed the chairman had purchased a total of 36,000 shares of AVCO common stock. This represents an investment value of $70,230 over the two Form 4 filings.
An SEC Form 4 filing dated June 6, 2019 disclosed Avalon GloboCare Corp. The chairman had purchased 21,000 shares of AVCO at a price of $2.03 per share. This comes out to total investment value of $42,630.
On June 7, 2019, Avalon GloboCare filed an additional SEC Form 4, which showed the chairman again buying up shares. In the second Form 4, the insider purchased an additional 15,000 shares of AVCO at a price of $1.84. The latest insider purchase equates to total investment value of $27,600.
AVCO: Weekly Chart Still Showing Deep Oversold Territory
Despite Avalon GloboCare shares’ recent rebound in June, the weekly charts continue to highlight and oversold state. AVCO’s weekly stochastics are currently at 11.03, far within the oversold territory of 20 or below. The relative strength index (RSI) is neither showing oversold nor overbought conditions, but at 40.05, it certainly is closer to the oversold threshold at 30.
Avalon’s moving average convergence divergence (MACD) histogram clearly shows the bottom is rounding off and beginning to angle higher. This is a positive sign, as it shows that bullish investors are slowly continuing to take control of the trend. Furthermore, with strong, long-term support at $2.00, Avalon looks like it is continuing to bottom out after such a over-the-top pullback.
Overall, Avalon GloboCare Corp has had a lot of great developments to celebrate since the beginning of June, in particular. Major operational developments are beginning to give way to renewed investor demand and interest. Volume and AVCO share price have seen a strong rebound in the past several weeks and the weekly chart suggests that there is further rebound still to come. Avalon and its management team continues to make strong decisions guiding the company through its growth plan and into the future.
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