Stock on Watch: Aethlon Medical, Inc.(AEMD)

Company Profile:

Aethlon Medical, Inc.(AEMD), a medical device company, focuses on creating devices for the treatment of cancer, infectious diseases, and other life-threatening conditions. It develops Aethlon Hemopurifier, a medical device that targets the elimination of circulating viruses and tumor-secreted exosomes that promote cancer progression. The companys Aethlon Hemopurifier addresses antiviral drug-resistance in hepatitis-C virus and human immunodeficiency virus infected individuals; serves as a countermeasure against viral pathogens not addressed by drug or vaccine therapies; and represents the therapeutic strategy to address cancer promoting exosomes. It is also developing exosome-based products to diagnose and monitor neurological disorders and cancer; and a therapeutic device to reduce the incidence of sepsis, a fatal bloodstream infection that often results in the death of combat-injured soldiers. The company was founded in 1991 and is based in San Diego, California.

Recent News:

The company reported net loss for the first quarter of fiscal 2016 was $1.2 million, or $0.18 per share, compared to net loss of $3.7 million, or $0.80 per share, for the first quarter of fiscal 2015.

The company recorded revenues from our government contracts of $192 thousand in the first quarter of fiscal 2016 compared to $51 thousand in the first quarter of fiscal 2015.

On July 13, 2015, an application to list our common stock on the Nasdaq Capital Market was approved and our common stock began trading on the Nasdaq Capital Market on July 13, 2015.

On June 24, 2015 the company successfully completed a $6 million private equity offering which yielded net proceeds of approximately $5.6 million.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

AEMD’s strengths can be seen in its better growth and strong solvency. Technical indicators signal the bullish signs, as there is a bullish cross in MACD, %K line is on top of %D line and RSI is increasing to 51.61. The current P/BV ratio indicates it is undervalued compared to the average P/BV ratio of the industry and the sector. We rate Aethlon Medical, Inc.(AEMD) a BUY.