Please ensure Javascript is enabled for purposes of website accessibility

bluebird bio, Inc. (BLUE)

This biotech is speculative but has attractive potential, and was just recommended in an article on Motley Fool. It is a replacement for the stock picked in January.

Buy: bluebird bio, Inc. (BLUE)
From Cotton’s Technically Speaking

bluebird bio (BLUE) is an exciting, cutting edge biotech company, and its stock is selling at a huge discount to its 2014 price of $190+ a share. It is a clinical stage biotechnology company that develops next generation products based on the transformative potential of gene therapy to treat patients with severe genetic and orphan diseases. It has two clinical-stage programs in development for childhood cerebral adrenoleukodstrophy and beta-thalassemia/sickle cell disease. And it also has a preclinical oncology program in the chimeric antigen receptor T cells field.

blue chart

As of March 31, 2016, the company had $826.9 million in cash, cash equivalents and marketable securities, which the company says should be sufficient to fund its current operations through 2018. It also has a collaboration agreement with Celgene for one of its products.

The stock is a Speculative stock, but we think it is a bargain at this price, and we expect the stock to move up 50-100% within the next six months. Our buying strategy would be to buy 200 shares at the current price of $41.00 (or so) and buy 100 shares again if the price declines to $20—which we don’t see happening.

Joseph Cotton, Cotton’s Technically Speaking,, 727-289- 4436, June 24, 2016