AIkido Pharma Inc. Extends Option Agreement; The Fundamental Debate on (AIKI)

AIkido Pharma Inc. (AIKI) reported loss of -8.15% in market trading today. As of August 11, the company in a press release reported the extension of its earlier disclosed agreement with the University of Maryland, Baltimore (UMB). In collaboration with UMB, AIkido will be working on “Methods of Treating Coronavirus Infection,” with a Patent number 10,434,116.

AIkido has extended its potential project of treatment for COVID-19 virus as the company previously announced the initial Option for Treatment of Coronavirus on March 6, 2020. The agreement option has been extended to happen later this year on December 2, 2020. The terms and conditions of the official Option agreement will remain in full force and effect. AIkido with the support of the government was able to begin work on this project under Grant Number AI095569 awarded by the National Institutes of Health (NIH).

At $1.13 per share, the company is currently around -5.79% down year to date in the stock market. At the time of writing, AIkido Pharma Inc. (AIKI) has a market cap of $43.37 million. The average transaction volume for AIKI over the past month (5236691 shares per day) is trailing its average daily volume over the past year by 41.8, which suggests market participants have been more active in this stock of late.

AIkido Pharma Inc. (AIKI) has been in rally mode, as indicated by the relationship between its 200-day and 20-day major moving averages. That said, over the past 30 days, AIKI shares have risen 9.76%. The stock has moved down -39.24 over the trailing 12 months, falling behind the rest of the market by 160.38%. It has also trailed competitors and similar names by -37.9%.

Looking at Key Indicators

Naturally, a cursory survey of superficial price points from the chart don’t say a whole lot about where AIKI shares could be headed. That’s why we need to dig a little deeper and check out what some of the most important momentum indicators seem to be saying.

The relationship between changes in price and the underlying strength or weakness over periods can point out deeper factors in the pattern that can often generate insights for technical analysts through momentum factors. Two of our favorite oscillating indicators are the Relative Strength Index (RSI) and the Stochastic %k Oscillator. In each case, the scoring is on a scale somewhere between 0 and 100, and in case, the levels to watch are “70” and “30”, with the former representing an “overbought” state and the latter presenting an “oversold” state.

With that in mind, here is a look at AIKI shares from this perspective. The 20-day RSI reading for AIKI is currently 57.57, which indicates that is not particularly expensive or cheap, and not predisposed to a reactive price movement based on this measure. If we look at the 20-day Stochastic %k measure, we find it at 63.75, which represents another indication of a neutral outlook.

Listening to the Analysts

Right now, AIKI shares appear to be trading -99.94% under the average price target for one year ahead from Wall Street analysts, which is at $1802.25.

Assessing the Risk

Risk is an essential factor in comprehensive investment analysis. One of the key factors that analysts consider in determining the systemic risk involved in a stock is called “beta”, which represents an individual stock’s volatility relative to the volatility demonstrated by stocks as an asset class, in general, as a function of broad market data.

AIKI, for example, trades right now with a beta of 2.16. The rest of the market is normalized to a beta score of 1.0, which means AIKI is more volatile than the average stock. By the same token, AIKI should be seen as somewhat more risky for market participants than the average stock.

We would also note that AIKI has posted average daily volatility over the past two weeks of 86.16%, or -1.79% more than it has scored on the same measure over the past hundred days.

The Fundamentals in Focus

As we now turn to the fundamental picture, we begin by analyzing it the way one might analyze a building: by starting with the foundation – the balance sheet. Without a strong foundation, the rest of the structure can’t stand.

For AIKI, cash levels are currently sitting at 2.83 million. That figure is balanced by 0.97 million in current liabilities. To further round out the picture, total assets are at 32.46 million and total liabilities sit at 0.97 million, granting a pretty thorough ground-up sense of the company and how it might withstand challenges ahead, should they appear.

In terms of recent free cash flow, AIKI, is currently reporting -2.39 million, which represents a quarterly net change of 2.83 million in cash flowing in the door.

Looking at the revenue path, we saw last quarter’s top-line number come in at 1.79 million in total revenues, which represents a y/y quarterly change of -102.03.

That brings us to the real meat of the matter: the bottom line. AIkido Pharma Inc. (AIKI) yielded a gross basic income of -0.52 million, which comes on a Cost-of-Goods-Sold number registering at -1.79 million, seated in 9.2 billion total diluted outstanding shares, adding up to earnings per share of -2.31. Notably, the consensus view of analysts looking ahead to next quarter is currently at 0.

That allows us to round out this picture with a look at valuations. Based on this data, and the forecasts we have at hand, the coming fiscal year looks to be headed toward 0 in total earnings per share.

However, estimates are only guesses about the future. Both business and investment trends are more important to take into consideration.

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