SELL ALERT: Cyberdyne and Bioquell

The market for exoskeletons continues to expand but the problem for Cyberdyne is that it has not been able to enforce what patents it has and that is leading to cheaper and more plentiful alternatives arriving on the market.

For example, Ford announced on 7 August that it is outfitting its factories all over the world with exoskeletons from Ekso Bionics, which are eerily similar to those supplied by Cyberdyne. That represents a headwind for the company, which has resulted in the share breaking downwards from its range.

Therefore, I now recommend selling the share since it no longer has the capacity to fulfil the target I had originally set for it.

Action to take: sell Cyberdyne
Ticker: 7779
Price recommended at: ¥2,353.00
Last close (as at 21/08/2018): ¥835.00

I would also like to update you on trading advice for Bioquell. The share rallied impressively immediately after I recommended it and is now above my buy-up-to price. The share pulled back last week but remains above the buy-up-to range.

I still think there is a scope for the current consolidation to result in the share coming back to my buying level so I am reluctant to change the level just yet.

All the best,

Eoin Treacy
Investment Director, Frontier Tech Investor

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