Avalon GloboCare's (AVCO) Monster Whipsaw Action Abounds

Steve Kanaval  |

Avalon GloboCare Corp.  (AVCO), a leading global developer of cell-based technologies, is trading like a monster today. AVCO is trading 7 million shares in the first half of the session, and it continues it's volatile ride since shares exploded 10 days ago.

I wrote about Avalon last week during a volatile day after a friend alerted me to the story - Click here to that read previous article. I want to try and unpack this stock and make some sense about what is happening here. Here is the PR from the company today, talking about the world’s first saliva-based biomarker for oral cancer.

Unpacking the Action

Shares have traded all over the board for the last 10 days, and something is seriously going on outside of the results of the study. I reached out to the company for clarification several times, and to date they have been silent other than the PR.

Worth noting, they were recently speaking at a conference, so someone knows something ahead of the news, but this is not the big concern for me. The problem is you cannot get a borrow to short shares, but someone is shorting millions of shares and has a decided edge in information and also is working with a broker who is allowing them to run roughshod over the rest of the participants. Again, often the company has little control over this, so I want to be fair, but the algo's and black hats are riding this horse all over the yard. Lets look at some price action.

First, there is zero chance a stock can trade 7 million shares in the first half of a session without the average trader able to initiate a trade from the short side, and go through this yourself on any of the trade platforms. What you get when you try and short is the standard " We are unable to execute your trade, would you like us to locate a borrow, " as if trading isn't difficult enough, any timing or range trading is eliminated for the average trader.

Examining the Playing Field

This unbalanced playing field is part of the scam and the black hat manipulators know going in that they have an advantage over everyone else. They also have a deal with the broker they use so this doesn't appear on their screens. Getting a borrow on a thin stock caters to the broker's best customers. But for me, the real problem lies somewhere in the large shareholders of Avalon. I have been trading for 30 years for multiple funds, and know how the game works. Know that this is a commission driven game, where the preferred large clients get special treatment from their clearing firms and often they own the clearing broker dealer.

So, the problem arises when the stock has big volatility and is halted intraday where someone complains and it hits the screen of the regulator. This is happening in Avalon, and again the company may not know a damn thing about it.

David Jin, M.D., Ph.D., CEO and President of Avalon GloboCare and Co-CEO of Genexosome Technologies, said: “We believe our discovery and clinical development of saliva-based exosomal miR-185 will significantly advance the unmet area of “liquid biopsy” and bio-therapeutics in the field of oral cancer,” added Dr. Jin. “We are very excited to have accomplished these milestones related to our exosome diagnostic and therapeutic platforms,” stated David Jin, M.D., Ph.D., CEO and President of Avalon GloboCare and Co-CEO of Genexosome Technologies. “We believe our discovery and clinical development of saliva-based exosomal miR-185 will significantly advance the unmet area of “liquid biopsy” and bio-therapeutics in the field of oral cancer,” added Dr. Jin.

One thing I can tell you for sure is the shortseller - or the blackhat trader here - has zero idea what this company does and knows zero about the science. They are hit and run artists and the average trader has no chance to participate and instead gets tested and whipsawed during entry and exit until they get frustrated and walk away. This is not good for our markets, so if you got whipsawed here, call, email the SEC and let them know you are unhappy.

Again, often the company has no idea what is happening, and I hope for the sake of the science no one at the company is involved because if they are, it will surface at some point. But for the hit and run fund, it is just a normal day at the office thinking about what they will order for lunch.

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Steve Kanaval

Portfolio Manager/Writer/ Market Analyst

Can be reached at stevek@equities.com

Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80's. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90's managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio's in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg, Equities.com, Hacked.com, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets.

Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.

DISCLOSURE: I have no position in this stock at the time of writing.


The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
AVCO Avalon GloboCare Corp. 4.23 0.05 1.08 132,884 Trade

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