Global Market Comments
November 16, 2023
Fiat Lux
SPECIAL STEM CELL ISSUE
Featured Trade:
(THE STEM CELLS IN YOUR INVESTMENT FUTURE)
(TMO), (REGN)
I’ll do anything to postpone aging, as regular readers of this letter already know.
So when my doctor told me that she could extend the life of my knees by ten years with a stem cell injection, I was all for it.
You better pay attention too.
Stem cells, along with CRISPR gene editing (CRSP), are two hyper-accelerating medical technologies that promise to cure your ills, extend your life, and make you fabulously rich along the way.
Have I got your attention?
When my doc confirmed that she was already getting spectacular results from her other elderly patients, such as the dramatic regrowth of knee cartilage, it was like pushing on an open door.
Yes, these are the famous well-worn 71-year-old knees you have heard so much about over the past 15 years that hike and snowshoe 2,000 miles a year with a 50-pound backpack.
My doc is not lightweight. She is the orthopedic surgeon for the US Ski Team at Lake Tahoe, which is why I sought her out in the first place.
As a UCLA-trained biochemist, I have known about stem cells for most of my life. They only left the realm of science fiction two decades ago.
Early sources of stem cells relied on stillborn human fetuses, creating a religious and political firestorm that led to severe restrictions, a funding drought, or outright bans.
During the 2000’s, California was almost the only state that permitted stem cell research.
Since then, the technology has developed to the point where it can be easily harvested throughout the human body.
Easy, except when the source is the bone marrow in your backbone.
“You may feel a slight twinge,” said my doctor, as she flushed the air out of a gigantic horse needle the width of a straw. “I only have to hammer this needle into your hip bone 20 or 25 times to get the marrow I need.”
This was NOT in the glossy brochure I had been provided.
I said, “Don’t worry, Marines are immune to pain.”
“Does that work?” she asked.
“No, not really,” I replied, grimacing. “But it sounds good.”
I felt every single blow and tried to imagine myself on a faraway tropical island. It turned out to be 55 blows. I counted.
Once she obtained the 10cc she needed, she popped it into a small centrifuge to separate the stem cells (clear) from the red blood cells (red).
She then used an ultrasound machine to inject my stem cells at the exact right spot in both of my knees.
Being the true journalist that I am, I took pictures throughout the entire procedure with my iPhone 15 (see below).
The problem with advanced, experimental treatments is that they are not covered by your health insurance. Still, I thought $2,000 for ten years of extra life for both knees was a bargain.
Stem cells are undifferentiated cells that can transform into specialized cells such as the heart, neurons, liver, lung, skin, and so on, and can also divide to produce more stem cells.
You can think of stem cells as chemical factories generating vital growth factors that can help to reduce inflammation, fight autoimmune diseases, increase muscle mass, repair joints, and even revitalize skin and grow hair.
Goodbye, Rogaine!
When you are young, you have oodles of these cells, which is why kids so rarely die from dread diseases.
However, as you age, your exposure to too much sunlight at the beach, too many chemicals in the food and water you eat and drink, and natural background radiation degrades your DNA and reduces your stem cell supply.
Supplies of stem cells diminish as much as 100 to 10,000-fold in different tissues and organs. Welcome to old age, and eventually death.
The procedure I underwent is called Autologous Adult Stem Cells Treatment.
The great thing about it is that since you are using your cells, the risk of rejection or infection is minimal. And they are free!
This approach has become the must-go treatment for the wealthy seeking to repair aging, sagging parts of their bodies.
They are often sold with vacation packages in exotic third-world countries where regulation and medical malpractice suits are nonexistent.
The fact that the treatments are now becoming widely available in the US testifies to their effectiveness.
Do any search on stem cell treatments, rejuvenation, or life extension and you will find hundreds and hundreds of private clinics offering to do so for high prices.
California leads the nation with 109 clinics (including 18 in Beverly Hills alone), followed by New York and Texas.
Just follow the money.
The market is now on fire and is expected to reach $270 billion by 2025.
As a result, several breakthroughs in longevity are just around the corner.
The industry is now branching out into fields considered unimaginable just a few years ago. I’ll cover some of the highlights.
Imagine using your stem cells to repair not only your knees but any other organ. This is already being done in the lab with animal trials.
In Japan, they are growing human eyes from scratch, including lenses and corneas.
At Stanford, stem cells are bringing dramatic improvements in stroke victims.
At USC they are deployed to bring rapid repairs to those with severe spinal cord injuries.
Several private firms have sprung up to facilitate the banking of your stem cells through cryogenic freezing, such as Lifebank. Just harvest them when you are young for future use.
Better yet, get born to wealthy parents who will pay to have your birth placenta and umbilical cord frozen, the two richest sources of stem cells known.
The key term to search for your investment strategy is Mesenchymal Stem Cells, the major stem cells for cell therapy, or MSCs.
These cells can differentiate into vital cells that can be used to cure autoimmune disease, cardiovascular disease, liver disease, and cancer.
There are now several hundred clinical trials involving these cells underway.
A more adventurous strategy is to buy the stem cells of others and have them injected into yourself, a procedure known as parabiosis.
A company in Monterey, CA named Ambrosia is doing exactly this for $8,000 a patient. The goal here is to reverse aging across every major organ system.
Of course, I think there’s got to be a trade here.
Not so fast.
Almost all stem cell efforts are now confined to the research labs of major universities or are buried inside large biotech and drug companies.
A few researchers have spun off to set up their own private companies with substantial venture capital backing.
That said, there are a few peripheral listed plays.
Celgene is one of my favorites and is an early entrant in the field. They are using placenta-derived cells to cure a whole host of diseases, which you can find listed on their site at http://www.celgene.com/research-development/rd-locations/celgene-cellular-therapeutics/cell-therapy/
Thermo Fischer Scientific (TMO) provides a range of tools and supplies scientists need to pursue stem cell research (click here for their site at https://www.thermofisher.com/us/en/home.html
Regeneron (REGN) uses stem cells to pursue a broad range of serious medical conditions, including ophthalmology, cancer, rheumatoid arthritis, asthma, atopic dermatitis, pain, and infectious diseases. Visit their site at
https://www.regeneron.com
The problem with the entire biotech sector is that it can take a long time to deliver new drugs and procedures to market. So these may be next year's investments, instead of next week's ones.
And how are my knees doing? I knew you would ask.
A little swelling in my knees went away in a day. I sat funny for a few more days, thanks to my bone marrow extraction.
It will take about six months before any real growth in new cartilage in my knees can be measured with an MRI scan, which I have scheduled. So far, the results have been great.
But you know what?
My knees have not hurt an iota, despite my regular tortuous exercise regime. And I think that, right there, is a win.
If it works, my doctor wants to extract fat cells from my middle, known as Adipose Cells, and inject their stem cells, into my knees.
Talk about killing two birds with one stone!
This Won’t Hurt a Bit
“Low volatility and boring. That’s the mode that investors should get used to,” said Bill Gross, Managing Director at bond giant, PIMCO.
Artificial intelligence (AI) is one of the most transformative technologies of our time. It has the potential to revolutionize every industry, from healthcare to education, from finance to entertainment, from agriculture to defense. AI is already changing the world in many ways, and it will continue to do so in the next decade and beyond.
However, AI is not a cheap technology. It requires huge amounts of computing power and data-crunching to perform tasks that normally require human intelligence, such as reasoning, learning, decision making, perception, and natural language processing. To meet the growing demand for AI services and applications, Microsoft, the leading global cloud provider and AI innovator, has been investing billions of dollars in building and expanding its cloud capacity.
However, Microsoft faces two major challenges in its AI endeavors. The first challenge is the dependence on Nvidia, the dominant supplier of GPUs, which are the main hardware components used for AI training and inference. Nvidia has been unable to meet the high demand for GPUs, resulting in a shortage in supply and a surge in prices. This has increased the cost and reduced the profitability of Microsoft’s AI ventures.
The second challenge is the competition from other cloud and AI players, such as Amazon, Google, Alibaba, and Tencent, who have been developing their own custom AI chips to reduce their reliance on Nvidia and to gain an edge in the AI market. These companies have been offering their own AI platforms and services, which are powered by their own AI chips, to their cloud customers. These platforms and services provide state-of-the-art AI capabilities, such as machine learning, deep learning, natural language processing, computer vision, speech recognition, and generative AI.
To overcome these challenges, Microsoft has been developing its own AI chip solution, code named Maia, which is expected to be unveiled at its annual developer conference, Ignite 2024, in November. Maia is a custom-designed AI chip that will be used in Microsoft’s data center servers and also to power AI capabilities across its productivity apps, such as Office, Teams, and Dynamics. Maia will also be available as a service to Microsoft’s cloud customers, who will be able to use it to develop and deploy their own AI applications.
Maia is designed to be more affordable, efficient, and scalable than Nvidia’s GPUs, as well as more versatile and adaptable than other custom AI chips. Maia will be able to handle various types of AI workloads, such as image and video analysis, natural language processing, conversational interfaces, text-to-speech, speech-to-text, machine translation, and machine learning. Maia will also be able to support various AI frameworks and tools, such as TensorFlow, PyTorch, ONNX, and Azure Machine Learning.
Maia will leverage various techniques and technologies, such as:
- Heterogeneous computing: Maia will consist of multiple types of cores, such as CPU, GPU, and TPU, which will work together to optimize the performance and efficiency of different AI tasks.
- Neuromorphic computing: Maia will mimic the structure and function of the human brain, using artificial neurons and synapses, which will enable it to learn and adapt from data and feedback.
- Quantum computing: Maia will integrate quantum bits (qubits), which can exist in superposition of two states, which will enable it to perform parallel and probabilistic computations, which are essential for AI.
- Edge computing: Maia will be able to run AI tasks at the edge of the network, closer to the source of data and the user, which will reduce latency, bandwidth, and power consumption.
Maia will be a game-changer for Microsoft and its cloud customers, as it will enable them to leverage AI for creating value and gaining competitive advantage. Maia will also be a catalyst for AI innovation and democratization, as it will make AI more accessible and affordable to a wider range of users and developers. Maia will also be a driver for AI ethics and governance, as it will provide transparency and accountability for the decisions and actions of AI systems and solutions, as well as enable human understanding and trust of AI.
When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline. Read more
Mad Hedge Technology Letter
November 15, 2023
Fiat Lux
Featured Trade:
(CONSIDERING AT INVESTMENT IN FISKER THEN READ THIS)
(FSR), (TSLA)
Removing the Chief Accounting Officer and delaying earnings on the day of earnings is a massive red flag for EV start-up Fisker (FSR).
Fisker said in a filing that it “determined that it has material weaknesses in the company’s internal control over financial reporting.”
Hiring the wrong person for one of the most important jobs at the company only to realize on the day of an earnings report is more than bad optics, and it certainly means there is probably a lot worse going on under the hood.
The blood bath in FSR shares continues today with the stock cratering over 2% which is on the heels of a 21% drop on Tuesday.
Fisker CFO Geeta Gupta-Fisker said the company is cutting its 2023 production guidance to a range of 13,000-17,000 units to enable the company’s “global delivery and logistics platform to scale” and not sit on inventory. Fisker’s challenges with delivery resulted in 4,725 vehicles produced, but only 1,097 delivered.
FSR has continued to over-promise and deliver which creates a toxic recipe for lower stock prices.
After peaking at over $28 per share in the summer of 2021, the stock has done nothing but slide into the abyss.
CEO Henrik Fisker said customers were waiting a long time for their vehicles and were getting “annoyed.”
Fisker’s production forecast stood at 20,000-23,000 units, which itself was reduced from a prior forecast of 32,000-36,000 in May, and again from 42,400 earlier this year.
It’s only time until the EV company starts reducing its forecasts even more and this constant expectation of changing expectations is due to bad management.
FSR lost $91 million in the past quarter and only has a tick above half a billion in cash.
Doing some basic math, it means that FSR will burn through their existing cash in 5 quarters if they lose around the same amount of cash each quarter moving forward. If this happens, they will need to tap the corporate debt market and pay extortionate rates of something between 17% and 20% considering they have a high chance of filing for bankruptcy.
Readers should keep in mind that FSR doesn’t sell a cheap car.
It’s quite expensive which will make it even harder to scale.
That’s bad news for a start-up that only delivers about 1,000 cars per quarter.
Performance and management seem like they aren’t up to snuff and on paper, the company isn’t hitting the metrics it needs to be taken seriously by investors.
From a pricing point of view, Fisker made pricing adjustments for its lone Ocean SUV, cutting its top trim Ocean Extreme by $7,500 to $61,499.
Ultimately, I see FSR’s competitive position, or lack thereof exacerbating as we move forward.
I don’t see how they catch up with the heavyweights as it relates to many critical factors in running a successful EV firm.
Low-interest rates or something similar to them will not be back for a long time and perhaps never.
This new rate environment doesn’t favor the start-ups the ones that already “made it” in a low-rate environment of the past.
FSR makes a good car, but not to the point where buyers will pass up other cheaper options.
If FSR is struggling to deliver more than 1,000 cars per quarter, it bodes ill for repeat purchases after so many buyers are waiting for cars that should have already been delivered.
Management not understanding the logistics of the situation is hard to fathom in 2023.
They might want to pick up the phone and call around to see what is going on.
If a buyer spends more than $70,000 for an EV from an untested brand like FSR, better get the car there on time.
There is a reason why Tesla (TSLA) just caught a bid and shares went up 18% and the stock has doubled this year and it’s not because they have trouble delivering 1,000 cars.
I’ll take a hard pass on FSR for right now.
“My goal was never to make Facebook cool. I am not a cool person.” – Said Co-Founder and CEO of Facebook Mark Zuckerberg
(THE WEARABLE AI IS HERE)
November 15, 2023
Hello everyone,
The Ai Pin is here. Anyone for a wearable AI this Christmas?
Start-Up Company Name: Humane
Price: $699 + $24 monthly data subscription to T-Mobile. Subscription includes a cell phone number, unlimited talk, text, and data.
When available: Orders can start from November 16.
Founders: Imran Chaudhri and Bethany Bongiorno (former Apple designers).
Design: Smartphone alternative, but it doesn’t have a screen.
Choice of three colors: eclipse (black), equinox (black and white), and lunar (white).
Two-piece design – main computer and a battery booster – magnetically connected and can be powered through clothing.
Features: make calls, send texts, access information through voice controls.
The Laser display can project information such as time and date onto the user’s palm.
Built-in speaker and camera. Double-tap on the device to take a photo or video. View them on Humane’s web app.
Can translate spoken English and Spanish conversations.
Collaboration: Humane has collaborated with companies such as Microsoft.
Launch statement: Open AI “gives the AI Pin access to some of the world’s most powerful AI models and platforms.”
ROBOTS TO THE RESCUE ON THE REEF
An Australian scientist is using the power of robots to regrow the threatened Great Barrier Reef, which is in a lot of trouble because of climate change.
50% of corals have been lost worldwide and the outlook appears grim. 70%-90% could be lost under climate change.
Dr. Taryn Foster, a marine biologist is cultivating coral from limestone, which is coral’s natural skeleton. Fragments of coral harvested from the ocean are glued onto plugs, which are then inserted into the limestone base. The whole skeleton is then planted in the ocean. Foster argues that this process bypasses several years of calcification to get to adult size by providing them with a premade skeleton.
Foster’s company Coral Maker has teamed up with AI business Autodesk. Robots will be doing the repetitive tasks. Foster’s goal is to mass-produce millions or tens of millions of corals every year to restore threatened reefs right across the world.
More coral bleaching is predicted in Australia this coming summer. Foster points out that more than 800,000 species are supported by coral reefs. Letting them disappear is not an option in Foster’s mind.
If you ever visit Australia, make sure the Great Barrier Reef is on your list of sights to see. The islands dotted off the coast of Australia in this area are truly stunning and deserve to be added to your travel schedule. The natural beauty of the landscape, the crystal-clear warm waters, the warm sunshine, and the welcoming locals are all a treat just waiting for you to enjoy.
Great Barrier Reef suffered the worst coral die-off on record in 2016.
Snorkeling on the Great Barrier Reef
Cheers,
Jacquie
Global Market Comments
November 15, 2023
Fiat Lux
Featured Trade:
(TESTIMONIAL),
(THE IRS LETTER YOU SHOULD DREAD),
(PANW), (CSCO), (FEYE),
(CYBR), (CHKP), (HACK), (SNE)
