Here is the stock watch list for December 28, 2009.

Athersys, Inc. (ATHX: 1.90 +1.60%) – Although Athersys failed to reach new highs on Thursday, it did manage to gain $0.24 per share to close at $5.52. It might breakout and go over $6 or pull down to mid $4’s. Watch out for the trend.

Compugen Ltd. (CGEN: 5.89 -3.76%) – On December 23, CGEN went from $2.76 to a high of $5.45 and then on Thursday, it pulled back to $4.08. That was a 13% pull back. CGEN ran up because of the same reason as the ATHX – Pfizer deal. If CGEN follows the trend of ATHX, then we might have a run to mid $5’s on Friday.

CitiGroup. (C: 33.54 +4.85%)- For me, Citi may not be a BUY for the short term, but it is a big BUY for the long term. It has paid back its TARP money and the United States Government will soon sell their Citi shares. There is no reason for Citi to stay below $4 in the long term. I would suggest to buying Long-Term Equity Anticipation Securities (LEAPS) or long term Options for Citi.

Fannie Mae. (FNM: 0.00 N/A) and Freddie Mac. (FRE: 0.00 N/A) – Everyone knows that FNM and FRE are both dead stocks, but they never seem to give up. After the market closed on Thursday, the treasury removed cap for Fannie and Freddie aid. This means, they will receive as much assistance they want to survive. This news might cause these stocks to make a short run up. Watch out for them.

Gannett (GCI: 14.91 +3.54%) – Wells Fargo upgraded Gannett to $18, but as advised by TheStreet.com, we are going against the grain and selling GCI.

Penny Stocks Watch list for December 28, 2009:

YRC Worldwide Inc. (YRCW: 13.21 +2.80%)
SIRIUS XM Radio Inc. (SIRI: 2.145 +1.18%)
E*TRADE Financial Corporation (ETFC: 9.19 +3.90%)
Zevotek, Inc. (ZVTK.PK)

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