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Markets had a solid week but Friday was a classic example of what can happen during the slow summer months. Liquidity dries up and, when the algorithms sell, it can get ugly really quickly in micro-caps. A good week for TW turned on a dime as our space got taken out behind the woodshed. At the crux of the market is the ongoing debate as to whether we are in a bear market rally or if lows have been established for the market. My opinion on this remains constant; we are seeing a bear market rally in the larger cap stocks and I expect that to reverse sometime soon. Meanwhile, I believe the brutal massacre of micros, in particular biotech, has established lows over the past few months that will hold. Constructive on my stocks, not so on the overall market. At the heart of my concern for the market lies the FED and liquidity. In the 2020-2021 rally, we witnessed stocks going up when the world was falling apart. This was not an example of the market “climbing a wall of worry.” Instead, this was a liquidity driven splurge that brought new investors (gamblers?) into the market, sending many near worthless companies’ shares vertical for many months. We are now just entering the reversal phase where inflation creates higher rates and the FED’s balance sheet reduction takes liquidity out of the system. Meanwhile, earnings are not bad but they are likely to get worse. Recession is likely soon and margins for large caps are at historically high levels. As margins moderate, earnings forecasts will come down and the next shoe will have fallen. Thus, my consistent theme is to invest cautiously. But, do invest. Good things are happening in the TW portfolio and I expect we will continue to see our stocks outperform as they have done for close to two months now. One in particular that I would highlight is Anixa (ANIX) . Shares of Anixa had a great week, up about 25% at one point, but they are still down from highs set about two months ago. Here’s the chart. As an old mentor liked to tell me, there’s always a reason stocks are down…sometimes it just takes a while to figure it out. In the case of Anixa, I was scratching my head wondering what had stopped the rally. Fundamentally, things are great. They have a potential blockbuster breast cancer vaccine in phase 1 and, as management has stated very publicly, the open-label study is exceeding all expectations. It appears to work! Yet, Anixa shares took a beatdown. Even stranger, it happened while the XBI had finally bottomed and was rallying. I was at a loss…at least until two weeks ago. It turns out, as I informed my premium subscribers at $2.90, there was a good reason Anixa was down. Actually, a great reason as the action had a clear explanation and it had exactly nothing to do with the fundamentals . Shares of Anixa were hit due to options owned by the former management (gone for 6 years now) expiring. Here’s a partial list of the options that were set to expire on July 6th. * Columns represent: owner, number of options, strike price, expiration date As Anixa rallied, those options were suddenly becoming valuable and right before the end of their life. My assumption, and I feel very confident in this, is that the selling we saw was a direct result of expiring options being exercised and sold into the market. A good explanation for the stock being down and a better cause for believing we were witnessing a great buying opportunity. At some point in the next few weeks, Anixa will announce dosing their first CAR-T patient. This program, in ovarian cancer, has great potential and dosing patients should be a good catalyst for the stock. Here’s an interview with the PI from Moffitt discussing the program along with several more very recent videos on Anixa’s YouTube channel covering CAR-T and other topics. Later this year, we should be seeing results from both the breast cancer vaccine trial and the CAR-T treatments. Anixa also hopes to partner on their covid program. All of these are major catalysts for the stock…I expect it to trade well through year-end. Meanwhile, former insiders’ long-term options finally reaching expiration has created a buying opportunity right in front of these major catalysts. Timing couldn’t be better for interested investors. How light were volumes last week? Friday’s selloff saw most of my universe trading around half of the average volume. Buyers went to the beach and the stocks got smacked. One that traded good volume and held up well was TFF Pharma (TFFP) , which had well over double its average daily volume trade hands on Friday. The stock feels poised to pop when good news finally comes. I think it’s near. INmune Bio (INMB) has outperformed the XBI during the recent rally in the index. I believe it’s poised to do very well when the FDA hold on their phase 2 Alzheimer’s trial gets removed. This could happen sometime in the next couple months. The reason I think the impact will be strong is twofold. First, for a phase 2 AD asset, INMB is very cheap. But, on top of this, the world is moving more and more towards realizing that inflammation is at the core of many CNS diseases. Here’s a video by Prof. Malu Tansey discussing the role of inflammation. The science here is strong. I’ve been recommending shorting Cassava (SAVA) for a while now with the thesis that their science is not strong; and potentially fraudulent. Here’s an article that discusses the questions around Cassava ( Potential fabrication in research images threatens key theory of Alzheimer’s disease) What’s interesting about the article, with implications for all companies in the Alzheimer’s space, is their questioning of a 2006 paper. What the article is suggesting is that the whole amyloid hypothesis, basically the basis for the majority of AD research over the last 15 years or so, comes from very suspect data. This thesis makes sense in that we have never seen a successful program targeting amyloid. Biogen’s Aduhelm was the closest to successful and it’s simply not viable. As the world realizes that inflammation is the key to treating AD, expect INmune to catch a much bigger bid, even more so with the recent bottoming in biotech in general. Therefore, once the FDA hold is removed, I suspect there will be many investor eyeballs turned towards INMB. TW Research's Disclaimers & Disclosures: TW Research may have been compensated for writing this article. For a full list of disclaimers and disclosures, please visit http://tailwindsresearch.com/disclaimer/ . DISCLAIMER Innholdet på Investornytt representerer ikke Investornytt AS´ meninger, men er forfatternes egne subjektive ytringer. Innholdet på Investornytt skal ikke sees som finansielle råd. Aksjehandel, kryptovaluta, kryptokunst og all form for trading er svært risikabelt og du kan i verste fall tape mer enn du har investert. Alle må gjøre sine egne vurderinger og ikke handle basert på informasjon på Investornytt. Personer i eller nærstående Investornytt AS eier de omtalte aksjene, fondene og/eller andre investeringene. Investornytt er ikke ansvarlig for noe tap, hverken direkte eller indirekte som følge av bruk av informasjon som fremkommer på Investornytt.

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