Breakout Move Today in PSDV; ALIM Lags

Today PSDV staged a "breakout performance" with the stock up by $0.75/share to $6.64 as I write this, a gain of more than 10%. Trading volume has swelled to almost 300,000 shares just shy of 2 p.m. (NY time), already more than 2x the average daily volume (last 50 days) of about 125,000 shares per day. The weekly chart for PSDV is a thing of beauty with a very lengthy "rounding bottom" formation (please refer to your copy of "Edwards and Magee" on that) with this week's price representing a breakout. Given the TIMING of this breakout, just before the FDA deadline for ALIM's application for Illuvien, I think it is particularly auspicious.

Interestingly, shares of ALIM are lagging, despite today's trading volume of more than 400,000 shares nearing 5x the average daily volume over the past 50 days. There are several reasons why ALIM may be lagging. One is that ALIM went public only last spring and so there are fewer money managers and portfolio managers that know about it. In my view, that is not a strong argument, however, since any PMs that know PSDV likely know the ALIM story very well, too. A second reason for ALIM's lagging share price may be that it is seen, at this point, as a "one trick pony" and any event short of approval this month by the FDA might be perceived as requiring them to raise some additional capital in the near term due to ongoing "cash burn" during the FDA review process. In my view, that isn't a great argument, either.

In my view, ALIM is being unfairly left behind here.

Readers can look back at some of the earlier posts here on the AfterSVNT blog about ALIM and PSDV to get the background story. Suffice it to say that rumors of the FDA acting on the Iluvien application prior to Christmas make alot of sense to me, since it is hard to believe that the FDA commissioners themseves are going to be in town and meeting on the day before New Year's eve.

Happy Hunting and best wishes to my readers and fellow investors/speculators.

aa/Jay Hains