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Joe Cotton: Bear Market emerges; protect your assets; Stock of the Week is Affimed Therapeutics


Market Assessment- As of Monday, November 29 at 1:08 a.m..

On Friday, the DOW plummeted 905 points on the news that a new COVID 19 variant has arisen from Africa. . .which is highly transmissible and could possibly evade current vaccines. We believe Friday was the start of the BEAR Market that we alluded to in our Monday, November 22, Market Assessment.

The most important thing to do in a Bear Market is to PROTECT YOUR ASSETS and go to the sidelines and go to CASH — and wait for lower prices. If you are on Margin, you can lose everything.

Joe Cotton

We would be Selling those high-priced stocks that haven’t fallen much yet, like Home Depot (HD) 402.70, Microsoft (MSFT) 329.68; Nike (NKE) 168.02; Amazon (AMZN) 3504.56; Tesla (TSLA) 1081.92; QUALCOM (QCOM) 175.74, etc. We would be 70% in cash if we had a large portolio.

Regardless, as we said last week, we would be Selling those high-priced stocks with High PE Ratios….or little or no earnings, like AlignTech (ALGN) 634.22, Intuitive Surgical (ISRG) 329.23, Expedia (EXPE) 159.80 and NVDIA (NVDA) 315.03, etc.

Our “Stock of The Week” is Affimed Therapeutics NV (AFMD) 6.97.

It is a clinical-stage biopharmaceutical company, focusing on discovering and developing cancer immunotherapies in the United States, Europe and Germany.

Here is an excerpt of a recent Motley Fool article from Finance.yahoo.com: “Last week Affimed reported that its lead product candidate AFM13, when combined with a dose of natural killer cells, produced a 100% objective response rate in heavily pre-treated patients with recurrent or refractory CD30-positive lymphomas. AFM13 is thus on track to become the go-to therapy for later-line CD30-positive lymphomas; an indication that ought to be worth around $500 million to $600 million in sales per year.”

We think it is a strong buyout candidate and expect it to double within 6 months. We own the stock.

Joe Cotton has won three National Stock Picking Contests with yearly percentage gains in excess of 96%. His 2020 Wall Street’s Best stock contest winner was Inovio Pharmaceuticals (Symbol INO) with a 742% 1-Year return.

This article is not investment advice, nor is it in any way to be construed as investment advice. For Investment Advice consult a Registered Investment Advisor or a Certified Financial Planner. Joe Cotton’s website is www.cottonstocks.net. NKY’s Joseph W. Cotton is publisher of the market newsletter, Cotton’s Technically Speaking. He is a graduate of Xavier University, a former bank manager and credit analyst, and a former Fidelity Investments registered investment representative. Contact him at cottonstocks@hotmail.com


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