Although my general market outlook right now is negative — given extreme extension in sentiment and technical gauges suggesting a meaningful market correction is long overdue — new areas of strength still are emerging.
A few biotechnology stocks also are surging, as evidenced by the recent boost in the SPDR S&P Biotech ETF (XBI).
Here are three stocks to buy, or at least to consider for quick long-side profits this month.
Stocks to Buy #1: Fibrocell Science (FCSC)
Click to Enlarge Fibrocell Science (FCSC) is on a tear, blasting out of a downtrend pattern dating back to June on massive upside volume. Shares have already reversed the September-to-November selloff, but have another 44% to go to retest its summertime highs.
FCSC focuses on therapies for skin and connective tissue diseases and related damage, such as scarring. The technology behind this is the use of autologous fibroblast cells, which are responsible for the production of collagen — the connective protein that gives skin strength and elasticity.
Fibrocell’s LAVIV product is an interdermal injection treatment that is used as an alternative to Allergan’s (AGN) Botox to remove wrinkles, specially the smile lines on the side of the mouth. Fibrocell hopes the technology eventually will be used to provide relief to victims of severe burns.
FCSC stock is up more than 15% since I added it to my Edge Letter Sample Portfolio on Jan. 9.
Stocks to Buy #2: Rosetta Genomics (ROSG)
ROSG stock caught fire Monday — a day after I recommended it to my clients — after Rosetta announced it had signed a service provider agreement with a major biopharmaceutical company (yet to be disclosed). That pushed ROSG stock above its 200-day moving average in a meaningful way for the first time since 2012.
Volume is pouring into ROSG as it pushes over its downtrend resistance line, and it looks ready to continue.
The catalyst seems to be the realization that the company’s microRNA cancer-finding screens are finally developing into a viable business model, with patient tissue samples flooding into its Philadelphia lab facility. In November, the number of samples received grew five-fold over the year before.
Stocks to Buy #3: AuRico Gold (AUQ)
As gold and silver prices rebound, mining stocks are seeing some buying interest, with the Market Vectors Junior Gold Miners (GDXJ) moving over its 50-day moving average for the first time since August.
AuRico should be a big beneficiary of the renewed investor interest in the industry.
Disclosure: Anthony has recommended ROSG and FCSC to his clients.