Blue Horseshoe Stocks: Alibaba IPO, VVUS Recap

Alibaba Group Holding Ltd. BABA - IPO 

Along with multitudes of excited onlookers today, we are going to be spending the second-to-last trading session of Summer 2014 with a large part of our focus on the much-anticipated Alibaba IPO. It certainly has been a summer of unusually many tech IPO’s; we saw companies like Mobileye (MBLY) and GoPro (GPRO) go public, and now the biggest one of them all (of all time, actually) BABA is sure to make its mark.

Where there’s a huge IPO concerned, there’s a huge amount of hype, and with huge hype comes the potential for rapid profits… Of course, wherever there’s a chance for rapid gains to be made, we’ll be right there!

Folks interested in more of a long-term relationship with the stock are liking BABA for simple yet powerful reasons; Alibaba is rapidly growing, already profitable, and has more than an 80% market share of Chinese ecommerce, a market that includes hundreds of millions of potential customers, and a lot of free cashflow to throw around. For many investors, those points will be all they need to know.

For those who like to have a bit more to go on, the numbers are certainly impressive. With an annual customer base of over 270M active consumers, yearly orders totaling roughly $14.5B, and total sales of almost $300B, the new kid on the block is also going to be the big kid on the block! The twenty-teens have brought many of the most exciting tech IPO’s of all-time, and this one could just be the most tantalizing of all.


VIVUS, Inc. VVUS

From off of our extended watchlist in yesterday’s pre-market report, VVUS had a pretty solid session. It saw a low of 4.21 in the morning before running as high as 4.82 in the afternoon, and in doing so, recorded volume on the order of more than 24x the one-month average. That was an intraday run of roughly 14.5%

VVUS has been yet another stock that we’ve caught coming off of 52-week lows that has found support and shown us a positive move.


Blue Horseshoe Stocks: VTEQ Report

VeriTeQ Corporation (VTEQ)

We’ve got a new interest to present this morning that is catching our attention for a number of reasons. VTEQ, in addition to being in a good place on the chart with regard to upside potential (more on that in a minute), operates in an interesting market sector.

The company develops proprietary RFID (Radio Frequency Identification) technologies for use in implantable medical devices. It’s rare to find a development-stage company like VeriTeq which has an established product line in this arena, and that’s another reason why we think running across the stock at this stage of the game could end up working in our favor.

Not including those in future plans for development, VTEQ has two primary technologies of note:

Q Inside Safety Technology -  Last year the FDA issued a “Final Rule” on Unique Device Identification (UDI). Under this rule, each medical device must be labeled with a unique device identifier, and the labeler must submit information concerning each device to FDA’s Global Unique Device Identification Database (GUDID).

VTEQ’s Q Inside Safety Tech uses an FDA-Cleared Passive RFID chip for UDI in everything from medical implants to artificial joints.  It allows medical professionals to use a handheld scanner to access device data quickly and efficiently  (i.e. serial number, lot number etc.) which could save lives in the event of device recalls. According to a press release out on Tuesday, more than 1000 women worldwide have already received breast implants which implement the product. >>> READ PR

RFID Dosimeter Technology – Radiation overdose is a very real threat associated with CT scans and radiation therapy, and VTEQ’s Dosimeters address that risk directly. By reporting and recording the radiation levels being delivered to a patient in real time, this technology also has life-saving potential. The dosimeters are available in implantable and external versions (pictured below)

These technologies are designed to work with VTEQ’s Informatics and Data Analytics platform currently under development, and are indicative of the medical profession’s move to digital record-keeping which has been taking place over the past several years.

CHART COMMENTARY:

Fortunately, operating in an interesting market sector isn’t the only thing drawing us to VTEQ; the chart is in a good position with what we feel is significant upside potential. The stock is oversold, yet it has been recording higher lows off of its recent bottom. A breakout from here is definitely a possibility so we’re going to have VTEQ on close watch:

FROM THIS WEEK’S NEWS FEED:

For More Information on VTEQ and its Technologies Visit:
www.VeriTeqCorp.com

Blue Horseshoe Stocks: SINO & PBR Updates

Sino-Global Shipping America Ltd. SINO

In yesterday’s newsletter, we mentioned that SINO was gapping up sharply in premarket trading, and as a result we would be on the lookout for a classic dip-and-rip pattern. That’s precisely what we got as SINO would settle into a low of 3.31 very early on, before springing back to run to a daily high of 4.69, which incidentally happened to be a new annual high as well.

In total the move was enough to secure up to 41% in intraday profits on incredible volume, to the tune of more than 58x the 3-month average.

This definitely signals a strong week for us; it marks the second consecutive session that a stock appearing in our pre-market report went on to set a new one-year high!


Petroleo Brasiliero S.A. (Petrobras) PBR- Options

The PBR Calls that we tagged in yesterday’s pre-market report fared extremely well as PBR once again surged past the $17-mark, and even cracked $18 briefly in the afternoon. The bullish run resulted in the $16.50 Calls trading up from .92 to 1.35, for a 47% intraday run, and the $17 Calls making an even better move. They started from a low .56 and spiked 105% to 1.15.

At this point our winning calls involving the PBR options chain, spanning back from early this spring, are too many to count. It has indeed been a wellspring that we’ve returned to time and again, and have almost always met with positive results.

Moving forward, we’ll be looking to roll our strike price up a bit to the $17 & $17.50 Calls, and in the event that PBR re-breaches and holds the $18-level, possibly even consider moving it up further to the $18′s and $18.50′s.


Extended Watchlist:
AUXL, IFON, AKS, CTIC, IMUC, PERI, OTIV

Blue Horseshoe Stocks: AVNR, SINO, FREE & More

Avanir Pharmaceuticals, Inc. AVNR

We included AVNR in our extended watchlist yesterday and we were glad that we did. The company released an announcement concerning the positive clinical trials of its drug “AVP-923″ which is used to treat Alzheimer’s >>Read The Release and what followed was one heck of a bullish session.

The stock saw an early low of 9.32, and steadily pushed its way up all session long, with the high of 13.09 coming just prior to the close. That mark represented a solid 40% intraday gain, as well as a new 52-week high! The amount of volume traded was also impressive, on the order of more than 89M shares, an annual record and more than 25X the three-month average, so we really like the timing of our alert on AVNR.

AVNR provides another good example of why we always remind our subscribers to check through our daily extended watchlist selections thoroughly, as hidden gems like this one tend to pop up with surprising regularity.


Sino-Global Shipping America Ltd. SINO

SINO began to run when the company released financials that included some significant highlights just prior to the close yesterday, and the stock is gapping up heavily this morning for what should be an interesting session.

Generally in these instances we’ll be on the lookout for the phenomenon we refer to as the dip-and-rip. Stockholders see the huge run, and the resultant profit-taking usually leads to a subsequent pullback. That’s where we’re waiting to catch the bounce and snipe some rapid profits.


FreeSeas Inc. FREE

FREE made its way down to a new 52-week low of .29 yesterday and could be in prime position for a possible bounceplay. This morning, the company has revealed that it has concluded the sale of one of its vessels for $12.25M and entered into a long-term charter with the new owners >> View PR

FREE is gapping up as a result and provided that the stock can break through resistance at roughly .45 which we’ve pointed out on the following chart, things could get very interesting.


Options Trading Ideas

We’ve got a couple of possibilities we’re looking at in the options arena today as well:

- RWLK $38-$40 Calls

- PBR $16.50 & $17 Calls


Extended Watchlist:
GRT, NWBO, DNDN, MSTX, STRI

Blue Horseshoe Stocks: APPG, RSH & OTIV Updates

Apptigo International, Inc. APPG

Our readers may recall that we tagged APPG as a potential bottom-play in Friday’s premarket report, as the stock was coming off its 52-week lows a couple of sessions prior.

We mentioned that we liked APPG “provided it can hold support above .365 in order to break the pattern of its recent downtrend”, and it did in fact maintain support above that level. We saw a daily range from .37-.43 which is equal to a 16% move, and the stock closed just a penny below its high-of-day.

We’ll be monitoring APPG as we kick off a new trading week, and looking for the stock to register higher lows and higher highs to confirm a sustained uptrend.


RadioShack Corp. RSH

Despite recent uncertainty caused by talk of possible bankruptcy proceedings, RSH did well on Friday. We’ve been tracking the stock heavily since the beginning of August, where we caught it at its 52-week low of .55.

Following a gradual incline to a high of 1.77, the stock has been under recent consolidation, and toward the end of last week we were looking for it to maintain support above its then-50DMA of .83, and it did just that.

On Friday it traded in a daily range from .86-1.00 (+16%), and closed at .91. Like the previously mentioned stock we’ll need to see RSH record higher lows and higher highs, and test its next key areas of resistance at 1.15 and 1.30.

It should go without saying that we’ll also want to keep our ear to the tracks for updates on RSH’s tenuous financial situation.


On Track Innovations Ltd. OTIV

OTIV made an appearance in Thursday’s newsletter on our extended watchlist. We saw the stock touch a low of 3.12 that morning, and then begin a gradual ascent spanning through Friday’s session as it went on to a subsequent high of 3.94 (+26%).

It’s going to remain high on watchlist today, as we’ve already seen trades in the premarket going off as high as 4.39. At that level, our total possible gain on this stock over the course of just a few sessions is expanded to 41%


Extended Watchlist:
AVNR, HALO, TWGP, API, MILL, NVFY