Last Updated on June 3, 2019 by Kevin Douglass
Supply and demand trade that will make money, even in a Bear market.
ADMA Biologics (Nasdaq: ADMA) is a great defensive play, especially while the markets remain volatile. The immunoglobulin (IVIG) shortage in the US has gotten bad, while ADMA has received two additional IVIG product approvals, Asceniv and Bivigam. Sultan, tells more about ADMA’s prospects here.
Investors who are sidelined should know about a third product in ADMA’s pipeline as well, NABI-HB.
Nabi-HB is not talked about enough, and should not be excluded. Nabi is also an IVIG, but is recommended to be used for treatment of Hepatitis B (HBV). There are currently about 850,000 people diagnosed with HBV, with about 3,000 person CAGR. Although there are other ways to get HEP-B, it mostly a sexually transmitted disease passed through blood and/or body fluid but this can also happen through sharing of needles and other drug-injection equipment. Most on the “Street” look over Nabi but with the opioid epidemic growing at exponential rates, it is my opinion that simple supply and demand metrics will ultimately put a huge multiplier on this companies stock price.
Before looking into the short term, one should consider the looking at a long term price action.
As you may see, ADMA Biologics chart has amazing symmetry from date of IPO to today. Patterns suggests how big money investors have historically traded within this company. Patterns tend to repeat in the market, especially with big investors such as Perceptive Advisers trading/ investing. Current trend indicates potential symmetrical triangle/ breakout scenario into the second half of the year.
Click chart and zoom in to see the short term trade play out (teal line) and current technical setup =)
I am/ We are long ADMA Biologics. This is not recommendation to buy or sell. Please do your homework before investing.