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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, www.cottonstocks.net, 727-289- 4436, June 24, 2016