Friday, October 18, 2013

Jim Rogers: “Average Person Will be Wiped Out”

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ImmunoGen, Inc. (NASDAQ: IMGN)

ImmunoGen, Inc., a biotechnology company, develops targeted anticancer therapeutics. The company develops its products using its targeted antibody payload technology. It offers Kadcyla, an antibody-drug conjugate for the treatment of HER2-positive metastatic breast cancer. The company's clinical-stage anticancer compounds include IMGN901, which is in Phase II clinical trials for the treatment of small-cell lung cancer; IMGN853 that is in Phase I clinical trials for ovarian cancer and non-small cell lung cancer; IMGN289, which is in active investigational new drug application stage for the treatment of head and neck cancer, and non-small cell lung cancer; and IMGN529 that is in Phase I clinical trials for non-Hodgkin lymphoma. It also develops compounds, such as SAR3419, which is in Phase II clinical trials to diffuse large B-cell lymphoma and B-cell acute lymphoblastic leukemia; SAR566658 that is in Phase I clinical trials for solid tumors; SAR650984, which is in Phase I clinical trials for multiple myeloma; AMG 172 that is in Phase I clinical trials for kidney cancer; AMG 595, which is in Phase I clinical trials for glioblastoma; BAY 94-9343, that is in Phase I clinical trials for mesothelioma and ovarian cancer; and BT-062, which is in Phase I clinical trials for multiple myeloma. The company has collaborations with Sanofi; Amgen; Bayer HealthCare; Biotest AG; Eli Lilly and Company; Roche; and Novartis Institutes for BioMedical Research, Inc.
IMGN has formed a head and shoulders (H&S) pattern. Please take a look at the 1-year chart of IMGN (ImmunoGen, Inc.) below with my added notations:
1-year chart of IMGN (ImmunoGen, Inc.) Over the last (5) months IMGN has created a key level of support at $15. That $15 support is also the current “neckline” for IMGN's H&S pattern. Above the neckline you will notice the H&S pattern itself (blue). Remember, patterns such as an H&S need to confirm to have the meaning that they imply. Confirmation of the H&S would occur if the stock were to break below its $15 support. If IMGN does break that level, the stock should move lower from there.

The Tale of the Tape: IMGN seems to have formed a head & shoulders pattern. Although a trader could go long at $15 expecting a bounce, the stock's pattern implies an eventual breakdown. If that happens, a short trade should be entered on a break of the $15 level.
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J.C. Penney & Sears: Why They’re Not Dead Yet!: JCP, SHLD

Another day another beating for J.C. Penney (JCP). Shares fell 8.9% on Tuesday after a research report from JPMorgan (JPM) suggested the troubled retailer was at risk of running out of money before its turnaround efforts take hold. The analyst said proceeds from J.C. Penney's recently completed secondary share offering enabled management to order goods in sufficient quantities for the holiday quarter but fell short of providing the company with an "infinite treasure chest."

Shares of J.C. Penney have dropped more than 40% since Breakout outlined the potential death spiral scenario facing the company. What concerns J.C. Penney vendors is the a combination of the 27% revenue drop since 2011 and $1.3 billion loss in 2013. Nothing personal but most companies are reluctant to ship goods to retailers losing more than a billion dollars a year on less than $13 billion in revenues.

If misery loves company, the plight of Sears Holding Corp (SHLD) must be making J.C. Penney investors giddy. Shares of Sears got beaten up last week after it emerged that the company had sold profitable locations to fund other operations. Regardless of last week's story, Sears has been reorganizing itself almost continuously since the company merged with Kmart in 2004. (more)

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150 Straight Days: Treasury Says Debt Stood Still at $16,699,396,000,000

by Terence P. Jeffrey, CNS News:
Every business day since May 17, the U.S. Treasury has published a daily statement claiming that the federal debt subject to the limit set by Congress closed the day at $16,699,396,000,000—about $25 million below the legal limit.
Monday, the Columbus Day holiday, according to the Daily Treasury Statement released today, marked the 150th straight day that the Treasury has said the debt subject to limit was stuck at $16,699,396,000,000.
On May 17, the first day the debt closed the day at $16,699,396,000,000, Treasury Secretary Jacob Lew sent a letter to House Speaker John Boehner stating that since the Treasury was about to hit the debt limit he would begin to use “extraordinary measures” to prevent it from doing so. These included, among other things, suspending investment of the Civil Service Retirement and Disability Fund in U.S. Treasury securities, and redeeming securities already held by this fund.
Read More @ CNS
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Oi SA (NYSE: OIBR): This Little Stock Could Easily Double in the Next Three Months

I love finding little stocks that have a strong possibility of doubling or even tripling in a short period of time.

I uncover them by running technical screens on stocks trading under $10. My screens search for companies that have been knocked off their highs, have built technical support and have bounced back above their 50-day simple moving averages.

Once the screen has located suitable candidates, I drill down into fundamentals, economic conditions and potential catalysts that could power the little stock higher. Many beaten-down stocks do what is called a "dead cat bounce," that is they bounce from their lows only to drop back down to those lows or even further. My fundamental, economic and catalyst screen, which I call "Price Drivers," adds support to the technical picture.

I firmly believe that technical analysis plays a powerful role in stock analysis, but it cannot stand on its own as a decision-making tool. Traders need to understand what's behind the price moves to make profitable decisions. Price alone isn't adequate for the vast majority of situations.(more)

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