That clip above is from a news feed today on Bluebird Biotech (BLUE). I do a top 10 list every year and BLUE was on it. LOL. I knew they had a good weekend at the American Society of Hematology this weekend in San Francisco. I got caught “anticipating” a breakout on BLUE maybe three times overt he last month with no results, so this time I decided to wait for the breakout, which I sometimes do, and then follow the momentum.
Well yesterday BLUE broke out and I decided to buy it today (and recommend to you guys last night). Well the company is basically curing leukemia in children. At least to the tune of a 90% remission rate so far. Amazing. Truly amazing. This is why I love biotech. What is more exciting than being long a stock where you make a lot of money and it helps (cures?) people. What a rush. You feel a part of it.
Anyway, on that news last night, the stock popped 35 points and the rest is history. The applications for blood disorders for this company is endless and they are talking about a cure for sickle cell anemia now too.
All my analysis is based on the technicals, but biotech is the only group where I do a ton of research and due diligence. You have to. There will be doubles and quadruples in this sector next year and I want to find few.
Anyway, stay tuned to the BLUE story and I will get long at some point, maybe higher maybe lower.
I may be launching a biotech newsletter in January using deep research and technicals. I’d like some feedback from you guys. Is this something that would be of big interest to you? I want to focus on diamonds in the rough that are under followed with obscene upside. These ideas will be longer term. One to three years. Let me know. Shoot me an email. [email protected]
Back to business.
I put three new names on the list today. Here’s why.
CELG is the Apple Computer of biotech. I wish I owned it cheaper, but with maybe $10 in earnings power by 2015 and a 20 multiple, the stock can double from here. CELG is partnered with everyone (AGIO, BLUE, XLRN and EPZM). All of those companies have blockbuster potential by the way. Lets not forget all the amazing thongs they are doing on their own. You own it and forget it.
The chart looks great and looks ready to breakout. We got long around 119 today.
XLRN– Acceleron broke out yesterday and had a modest follow through today in a tough tape. Celgene highlighted the drug development programs with Acceleron as one of the two most promising pipeline collaborations (with AGIO being the other), at the American Hematology conference in San Francisco over the weekend.
We got long today at 42.50. Target 50.
KITE is basically in the same business as BLUE. The science is called CAR-T. Remember that because you will heat a lot about it going forward. KITE also presented at the ASH conference in Frisco. Right now this is a slightly cheaper way to play BLUE. Amazing science. The stock had a high volume breakout today and I’m looking for follow through with a first target of 60. Note that the stock announced the issuance of $150 million in stock after the market closed. We got long today at.
See you in the morning.