I’m excited today to update readers on two core positions in the portfolio.  Cord Blood America (CBAI), utilizing the Schissler Factor, went on a two day streak of positive PR’s.  First with an acquisition of controlling interest in a profitable South American stem cell storage company, BioCells, and today stating they have signed a Definitive Supplier Agreement with a well-respected, accredited, tissue bank providing placenta collection services for therapeutic transplantation, and are already filling orders.

Within minutes of today’s news hitting the wire, CBAI jumped from the lows of the day about 10% higher (per the chart below).  This shows how explosive CBAI can be when it has some volume.  20 million shares changed hands within minutes fueling the large jump up but the volume was not consistent enough to keep us over $.01.  I suspect that may be only a matter of time though.  The A/D line jumped higher showing strong accumulation however it started to trend lower towards the final hour consistent with the lower volume. We would like to see that line continue an uptrend which will bring the PPS to higher levels.  However, the OBV stayed level throughout the final hour which is a positive sign.

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Another important point to note is how some of the MM’s have gone dormant in CBAI lately.  After today’s news, two of the most highly active MM’s in CBAI, over previous months, poked their heads in while watching the L2.  If they return, I believe we could see some volume and volatility finally bringing us to higher levels as they tend to push the pace when they are active.  I will be watching closely to see how this plays out tomorrow as the news today may have woken the beast in CBAI.

Sirius XM (SIRI) rebounded nicely today with some more volume and a stronger effort by the longs.  Yesterday, per the chart below, was a low volume day of mainly selling as noted by the strong negative trend in the CMF for the majority of the day.  The longs turned it around at the end of yesterday which continued into today.  We saw stronger volume intraday and the bulls pressing forward again with the A/D line trending north.  I added today around $1.10 when the RSI briefly dipped below 40 which I consider a good buying point when neither the A/D line nor the OBV trended noticeably south on the drop in price.  Soon thereafter, we moved a few points higher in price and all the pertinent indicators showed strength leading to the close.  This move definitely feels much safer than the last attempt at staying over $1.  I expect to see more upgrades over the coming weeks and we can now relax and expect a solid quarter per some of the early earnings releases.  Not only can we see some explosiveness in CBAI but we may not be done with it in SIRI.

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The portfolio looks poised for more significant gains this quarter and I couldn’t be more excited.  As always, do your own homework to see if you agree on these stocks.  See you in live chat come morning.  Good luck out there.

Mike

At the time of publication, Kudrna was Long SIRI and CBAI but positions can change at any time