Stocks To Watch: VLTC, SGMO, CHOP, CBAK

( click to enlarge )

Voltari Corp (NASDAQ:VLTC) starts showing buy signals again. The latest candle is a strong bullish engulfing candle on massive volume and it is most likely that the stock will continue its move up. For now, expect a run up to next major resistance area around $10.8. Support lies around $7

( click to enlarge )

Shares of Sangamo Biosciences, Inc. (NASDAQ:SGMO) are starting to heat up again and are worth watching. If volume can pick up I believe this stock can break through resistance at $13.94 and re-test its recent highs around $16.

( click to enlarge )

Thin name but with a nice looking chart. If China Gerui Adv Mtals Grp Ltd (NASDAQ:CHOP) can break out above $2.32 (20EMA) on volume, I think the stock could shoot up to test $3. There looks to be good upside potential, so watch the stock very closely on Thursday. 

( click to enlarge )

China BAK Battery Inc. (NASDAQ:CBAK) is trapped between the 50-day exp moving average and the 200-day exp moving average. I feel a big move is coming within the next few sessions. MACD is about to trigger a buy signal with RSI pointing upwards.

Please share this article

GAMCO Global Gold, Natural Resources & Income Trust (NYSE: GGN): 12% Gold Dividend

• Gold prices fell below $1,400 an ounce in May of 2013. And they've been between $1,100 and $1,350 ever since. Two years... that's a pretty long time for any asset to consolidate. But gold isn't just any asset. Gold bugs say it's the only reliable currency because its value can't be debased by central bank actions like paper money.

Gold detractors like Warren Buffett say gold has no utility and therefore should be valued in the same way companies are.

Companies can grow by selling more product and can earn more in profit by increasing efficiency. Gold can't do that. Gold is basically dependent on the U.S. dollar for its value. 

However, gold mining companies can increase revenue by selling more. And they can earn more profits by increasing efficiency. I can't tell you what gold prices are going to do. But gold stocks look pretty good right now...

Barrick Gold (NYSE: ABX) was a $50 stock in 2011. Today it's around $12. The last time it was below $12 was 1992.

Newmont (NYSE: NEM) broke briefly above $70 back in 2011. It's around $27 now after briefly dropping below $20 last December. You gotta go back to 2000 for the last time that happened.

Seems to me it's a good time to own gold mining stocks. The upside will be explosive when it comes. But instead of buying one particular miner, why not buy them all? With the GAMCO Global Gold, Natural Resources & Income Trust (NYSE: GGN), you can. This closed-end fund run by Mario Gabelli's GAMCO holds all the most important gold miners. It's a little over $7 a share and will pay you nearly 12% a year in monthly dividends. The fees are not too bad either, at 1.25%.

Please share this article

Range Resources Corp. (NYSE: RRC)

Range Resources Corporation, an independent natural gas, natural gas liquids (NGLs), and oil company, engages in the acquisition, exploration, and development of natural gas and oil properties in the United States. It holds interests in developed and undeveloped natural gas and oil leases in the Appalachian and Midcontinent regions. The company owns 7,582 net producing wells and approximately 1.4 million net acres under lease in the Appalachian region; and 653 net producing wells and approximately 383,000 net acres under lease in the Midcontinent region. In addition, it provides gas gathering and transportation from southwestern and northeastern Pennsylvania. The company sells natural gas to utilities, marketing and mid-stream companies, and industrial users; NGLs to natural gas processors or users of NGLs; and oil and condensate to crude oil processors, transporters, and refining and marketing companies.
Take a look at the 1-year chart of Range (NYSE: RRC) below with the added notations:

Like most energy names, RRC declined persistently into the beginning of the year. The stock then formed a double bottom price pattern, and then confirmed that pattern in April. The double bottom pattern, and confirmation, formed a $55 price level (blue) that has become important to the stock. Not only was the $55 mark the resistance point between the two bottoms, but that level was also support after the stock broke higher in April.

The Tale of the Tape: RRC has a key level at $55. A trader could enter a long position on a pullback down to $55 with a stop placed under the level. However, if the stock were to break back below $55, a short trade could be made instead.
Please share this article

Merrimack Pharmaceuticals (NASDAQ: MACK)

Now, I am not a doctor — the science behind any biotech company is a bit of a mystery to me. And so I have to rely on the market's acceptance of any biotech company for validation. For Merrimack, it looks pretty good.
So far in 2015, the stock has moved from $9 in January to a recent high around $13.60. It has since pulled back to the ~$12 level.
Merrimack is still in the development stage, so it is losing money on R&D. But next year's loss has been cut significantly, which suggests that momentum is building.
Merrimack is valued at $1.3 billion, and it has $103 million in trailing revenues. In fiscal 2016, revenues are expected to jump to $189 million. But the thing is, Merrimack is already positive $20 million for levered cash flow, which accounts for administrative costs and debt payments.
Merrimack is partnered with Baxter and receives milestone payments that are expected to cover operations through 2016, so funding shouldn't be an issue. That's always good for a development-stage company. For investors, the sole focus can be on efficacy of its two main drugs for pancreatic and breast cancer.
Of course, there is always risk with any biotech stock. With Merrimack, the partnership with Baxter is a big plus. The fact that biotechs have been so strong is also a positive.
Big Pharma like Pfizer (NYSE: PFE) and Merck (NYSE: MRK) must make acquisitions to grow pipelines, and that's been a big driver for biotechs. It's not likely to end soon.
Merrimack's chart is a bit indecisive at $11.90 right now. The recent decline from $13 is the result of earnings, not negative results from its drugs. There's support at $11, and that level would make a pretty good entry. 

Please share this article