FREE, ZLCS, ARQL & Extended Watchlist

FreeSeas, Inc. FREE

It seems yesterday’s news that FREE orchestrated a deal to clean roughly $30M of debt on its balance sheet was well received, as the stock continued its recent unptrend. After we pointed out FREE gapping up into the tune of .63 in yesterday morning’s report, the stock touched a daily low .622 before rocketing to a high of .93, good for a 50% intraday gains.

The 200DMA sitting at .99 is going to be the next major resistance hurdle for FREE. Granted the fact that the stock is up approximately 660% from recent lows, it certainly may be a time to start thinking about taking profits off of the table in anticipation of a pullback.

Zalicus, Inc. ZLCS

ZLCS is a morning gapper that popped up on our scanners today. The stock recently made a nice 94% move (.48-.93) from the beginning of August to the beginning of September. The chart looks ripe, with a recent golden cross taking place, and the stock making higher highs and higher lows. The level of support in September has been .71, and main resistance is sitting at .93. This will be a stock that we want to keep an eye on going forward.

ZLCS is a biopharma company that develops treatments for pain, and currently has a drug undergoing Phase 1b clinical study.

ArQule, Inc. ARQL

Speaking of stair-steppers, ARQL has been on a tear since last Thursday when it touched a low of 2.12. Yesterday the stock reached a high of 2.53, a move of 19%

Both yesterday and the day prior, ARQL had breached the 50DMA at 2.47. We’re watching the stock currently gapping up to the tune of 2.88, up another .41 (+16%) from yesterday’s close.  In breaking the 2.80 mark in premarket trading this morning, the stock has surpassed a a recent level of resistance around 2.80. Any time we find a big-board stock with this kind of momentum, we like to pay close attention.

The next levels of resistance that will need to be cleared is sitting at 3.05 and 3.10, swing-highs from May and April, respectively.

Extended Watchlist:


DRYS, FREE & Extended Watchlist

DryShips, Inc. DRYS

DRYS appeared in Tuesday morning’s extended watchlist, after which time we observed a low of 3.40. Yesterday the stock hit a high of 3.99, marking an overnight move of 17% This morning, it looks like it is gapping up, so we will be monitoring this play today for added gains that could result from the current momentum.

Our first ever mention of DRYS was back on August 22nd, when the stock was trading around 2.20. From that point, yesterday’s high represents a move of 81% As you can see on the chart included, DRYS has been on a steady uptrend since it first hit our radar.

FreeSeas, Inc. FREE

We had FREE on bottom-watch back in July, and it wasn’t too long after that when we saw the stock touch a low of .1652 (08/01). After generally trading sideways for the month of August, FREE began a rise that has lasted all the way through this month, culminating in yesterday’s .59 high, a move of  257% off of its bottom.

This morning it looks like FREE is gapping up into the mid-.60’s range, so it seems further gains are on the menu. Today the company reported details of a deal that will clean a significant amount of debt from its balance sheet:

Athens, Greece,, Sep 26, 2013 (GLOBE NEWSWIRE via COMTEX) — FreeSeas Inc. (Nasdaq CM: FREE)(“FreeSeas” or the “Company”), a transporter of dry-bulk cargoes through the ownership and operation of a fleet of six Handysize vessels and one Handymax vessel, announced today that it has entered into an assignment and amendment agreement (the “Assignment”) with Deutsche Bank Nederland N.V.(“Deutsche Bank”), a Magna Group affiliate fund Hanover Holdings I, LLC (“Hanover”), Crede CG III, Ltd (“Crede”) a wholly-owned subsidiary of Crede Capital Group, and various wholly-owned subsidiaries of the Company.Mr. Ion G. Varouxakis, Chairman, President and Chief Executive Officer of the Company made the following comments: “We are pleased to enter into the Assignment, which will remove, immediately upon appropriate court approval, approximately $30 million of debt from our balance sheet. >>> FULL STORY

Extended Watchlist:


AAPL, CTXV & Extended Watchlist

Apple, Inc. AAPL – Options
Apple surpassed the $490-mark yesterday, as we suggested it might in Friday’s newsletter. Impressive iPhone sales seem to be the catalyst here as the stock gapped up yesterday and saw a daily high of 496.91, revealing the $480-$485 Calls that we were monitoring as multi-bag gainers.

To determine our next course of action, we are going to want to watch AAPL’s attitude closely; resistance at this point appears at $498 & $500. Failure to breach those levels could result in a consolidation for which we need to be prepared.

CTX Virtual Technologies, Inc. CTXV

We have CTXV on our long-term watchlist, and while the stock is fairly illiquid at this point in time, we like the idea and business plan behind this one enough to monitor its situation going forward.

CTX manufactures a variety of mobile communication technology including basic Cell Phones, PDA’s, Smartphone’s, Printed Circuit Boards and the worlds smallest fully-functioning PC, the MISEETX. CTX also manufactures and distributes it’s proprietary 3D electronic perception technology for interactive virtual computer keyboards.

In addition to logging almost $50M in net sales for the last reporting period, the company recently received the go-ahead from BlackBerry to begin using the BlackBerry compatible logo on their VK 200 Keyfob(TM) input devices.


Extended Watchlist:

FB Calls, GOGO, RNA, EXMT & Extended Watchlist

Facebook, Inc. FB – Options

We were looking for a dip-and-rip scenario from the FB 09/21 $45.50 Calls on Friday, and that is exactly what transpired. After dipping as low as .38, and closed at the high of day at 1.92, marking an enormous 405% intraday gain!

From when we originally mentioned these contracts on Wednesday, Friday’s close represented a move of 1820% off of the ten-cent low.

Gogo, Inc. GOGO

We started watching GOGO on Monday of last week, when the stock was trading as low as 14.79. At Friday’s peak, we observed a share price of 19.18, good for a nice 30% intraweek increase.

Remember, despite a very good short term performance from GOGO, that we are still keeping this stock on our long-term watchlist as well.

Prosensa Holding N.V.  RNA

RNA appeared in Friday’s extended watchlist, in which we clearly stated that we were watching for a bounce after a big gap-down, and that’s just what we got. The stock hit low of 5.65 before traversing its way up to 8.00. That was enough for single session gains of 42%

Anything Technologies Media, Inc. EXMT
This was an extended watchlist play of ours all last week, both on Monday, and Thursday. On Wednesday the stock was as low as .0009, and on Friday, as low as .0011 before closing at .0019. That call yielded us gains anywhere from 73-111%

This is one from our ongoing marijuana stock watchlist that we had noted coming down to its support level, and that sharp eye really paid off. It sets yet another example of why we always urge our readers to pay every bit as much attention to our extended watchlist plays as the stocks that we feature.

Extended Watchlist:

FB, AAPL Options, GOGO & Extended Watchlist

Facebook, Inc. FB – Options

On Wednesday, some of you may recall our interest in FB calls, as we stated “if the stock can break the $46 barrier… we’d be looking at in-the-money Calls like the 09/21 $45.50′s.” As you can see on the included chart, after seeing a low of .10, those contracts would go on to trade as high as .85 during yesterday’s session. That move was good for overnight gains in excess of 750%

With FB gapping up this morning and hitting new 52-week highs, we are going to want to continue giving our attention to the Calls. Of course, in the event that we see a reversal off of these substantial gains, we are going to be on the lookout for a dip-and-rip scenario, which could bring us even further gains with a properly timed bottom.

Apple, Inc. AAPL – Options

We’re also seeing a gap up in AAPL which is coinciding with the release of the latest versions of the iPhone 5(S/C), and with a sizable gap to fill on the chart, we could actually see AAPL go to $490 today. If it did approach that level, we’d be interested in the $480-485 Calls, which could provide us multi-bag gains.

Other than flipping the weekly Calls intraday, we might also want to consider contracts with later expiration dates if it appears AAPL is gaining a head of steam that would carry over into next week.

Gogo, Inc. GOGO

We first mentioned GOGO on Monday, and at the time the stock was trading as low as 14.79. Currently we are seeing the stock trading at 18.15 pre-market, (a gain of 23%) so this is another play that will be grabbing our attention today. For a big-board stock in this price range to see a gain of that magnitude inside of a week is nothing short of remarkable.

Gogo actually has an intriguing technology for providing super-standard Wi-Fi internet connections to airline passengers with in-flight data delivery speeds of up to 60Mbps. With the company just having announced that they will be bringing their products to North America in 2014 pending FAA approval, this is definitely a stock that we are going to want to put on our long-term watchlist, as we see how its story plays out.

Extended Watchlist:
FREE, CYCC, VRNM, ACRX, FU, PZG, RNA (Big gap-down, watching for bounce.)