Blog > US Stocks and Markets > Controversial call? HSC sells BioTime (BTIM) for just 26%
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Controversial call? HSC sells BioTime (BTIM) for just 26%

Today's Financial News - Posted September 17, 2009

TFN Hot Stock Confidential readers were advised to bunker 26% gains on BioTime (OTC:BTIM) today. Will we kick ourselves for having taking profits too early?

by J. Christoph Amberger

Baltimore, MD — TFN: I erroneously sent out a sell alert for Inovio (AMEX:INO) earlier this afternoon. Seems like I couldn’t look into the appropriate line in our HSC spreadsheets! (I blame my distraction on Laura Cadden being in surgery… how could she be so inconsiderate!!)

Luckily, my initial e-mail alert to our members made no sense at all! Inovio is still well in our buying range.

Both positions were part of our September 3 Hot Stock Picks of the week, in which we presented a number of stock recommendations to members of our premium service, Hot Stock Confidential. We had culled them from the suggestions from your fellow HSC Members… and done our own due diligence.

One of these picks, Katanga Mining (TSE:KAT), rewarded us with gains of 77% in a week.

Another one clocking in with good gains was BioTime (OTC:BTIM), suggested by HSC Member Bob H.

BTIM develops sythetic plasma expanders and blood volume substitute solutions for uses in surgery. As of this year, a subsidiary of the company, Embryome Sciences, Inc., is focusing on iPS technology that transforms human cells of the body back to a primordial stem cell state.

Shares went up over 10% today, bringing our total gain to over 26% — a bit above our 20% short-term target.

I decided to add this one to our “profits taken” roster — for the time being. BTIM is double-digit gainer #61 we’ve taken for our HSC members this year. (Don’t tell me you still aren’t a member!)

But was I right taking these gains?

HSC Member Fred W. thought I was nuts. He wrote: “Are you crazy — sell Bio Time??? How can you possibly recommend that?! Are you familiar with the management of the company and their product? This is a vault stock. Please explain your logic in selling this stock. I can’t wait to hear from you!”

Well, Fred, I don’t disagree with you on the quality of the company. It’s what we call a DGS — a Damn Good Stock! Solid Product. Good management. And the potential for catalytic bursts upward.

Just as we saw today. I don’t deny its long-term potential. But I’m currently extremely cautious in regard to the medium term!

We’ve been plumbing the markets for gains all year… but I can’t shake a feeling of unease in the medium term! Based on what I see going on in the economy, I look at October and November with a jaundiced eye. And am ready to enter a period of potential extreme volatility with cash in my pocket.

Like many other biotechs, I believe we may revisit BTIM recommendation when prices have pulled back again. In the meantime, let’s chalk up double-digit gainer #61 for this year… and again thank Bob for his wonderful suggestion!


Next Article: TFN eNews 09/17/09: A battle of a different kind… and a 34% gainer for TFN readers

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Posted by J. Christoph Amberger · Filed Under US Stocks and Markets 

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