Blue Horseshoe Stocks: EAPH Updates & More

Easton Pharmaceuticals, Inc. EAPH
As we wrap up this short trading week, we thought we’d touch upon EAPH, a stock that has done big things for us this year. Some of our readers may recall our very first tag of this play back in January, around which time we observed the stock trading at a subpenny low of .0041.

By early February, less than a month later, EAPH shot up to a high of .0989 (+2300%) easily making it one of our top ten calls so far in 2014.

Since that huge run, there have been quite a few swings to follow, but the overall trend was toward consolidation, which over the past few months brought EAPH back to Earth. The stock bounced off of a low of .011 on 06/25, and over the past several sessions, has begun to recover some ground. Yesterday in particular brought EAPH close to the .02-mark, falling just shy with a high-of-day of .0197.

We’ll be paying closer attention to EAPH in sessions to come now that it has bounced off of support and is attempting to make up some of the ground lost in recent months. Key resistance is around the .021 level.

It’s just one of the marijuana-relatedstocks that began to feel a surge of life this week, as we suggested might happen in Tuesday morning’s report. Washington State’s legal sales will effectively begin next week, when the Liquor Control Board expects to issue the first retail licenses.


American Apparel, Inc. APP

APP, a stock that we have turned to for reliable profits year after year, has done exactly as we suggested when we brought it back to our reports on April 15th, noting that we were heading into the time of year when APP traditionally provides well for us; the stock was trading at a low of .47 around that time.

APP ran to more than .70 later that month, began to taper back into the .50-range and recently, on June 27th, the stock surged to hit a high of a dollar even, marking an overall move of 112%

As the stock consolidates off of that major spike, we will be watching for support, and the chance for possible bounceplay opportunities. The previous resistance area from .78-.82 is where we’ll be looking for support to hold. As the holiday retail season approaches, we will keep a continuous watch over APP.


Extended Watchlist:
DRL, ATNY, RAD, TRTC

Blue Horseshoe Stocks: OTHM Report

Oriens Travel & Hotel Management Corp. OTHM

This morning’s report is going to be on OTHM, a super sub-penny stock with an unusual amount of substance for a play trading in this price range. It’s been a little while since we looked at something in the high risk/high reward arena, and this could be just the chart we were looking for, but first let’s take a minute to familiarize ourselves with the company.

Oriens Travel & Hotel Management started out its operations in Costa Rica, and by 2008 had acquired over a dozen properties in Central America which it maintained under its Hotel PURE brand. Over the next several years, the company built that number up include more than 50 hospitality properties around the world, though the bulk are located in the US and Central America.

In 2012, Oriens established and implemented Friendly Reservation Online, a proprietary online booking and payment processing system which increased profits and efficiency across their entire portfolio.

Most recently, the company has moved to acquire a beachfront property in Jaco Beach, Costa Rica in a rapidly developing tourist area with many other development projects underway in the vicinity. While it is only in the LOI stage at this point, a 4.5% cash consideration was given by Oriens to secure the deal.The five story, forty-two unit condo/hotel building has been appraised at an average value of $400,000 per unit, so there will be a significant addition to the company’s books upon completion of the deal.

You can find the details of this and other recent happenings in the following PR’s, all released within the last ten days:

Also refer to this morning’s news, which among other things, includes a Shareholder Update, and outlines the commencement of a share reduction program by the company, which is always a good thing.

As far as the OTHM chart is concerned, we feel that the potential is definitely there. Trading in the triple-zero range, we’ve seen stocks explode for huge percentage gains over just a short time period, so the potential for rapid profits is certainly there with shares purchased in the current range between .0004-.0006.

The stock traded above .0015 earlier this year, so we already know it has the ability to run. If OTHM can break resistance at .0007, the gains from current levels could be quite large.

We also took a minute to draw up a video chart on OTHM as well:

Website: www.orienscorp.com


Blue Horseshoe Stocks: PMCM Update

Primco Management, Inc. PMCM

PMCM has appeared in our reports a few times in the past, and from the current setup of the chart, we thought it would be a good time to take another look.

The stock is coming off of a recent bottom of .0013, and life is being breathed back into it, as it has started to run this week, yesterday reaching .0022 into the close. That figure also coincides with the stock’s 50DMA, so ideally we’d like to see the resistance there broken. In order for us to remain interested in PMCM we’d like to see it hold support above the 200DMA of .0016.

As you can see on the chart itself, we have bullish signals on both the RSI which is pushing toward the powerzone, and the diverging MACD. The stock was trading above .06 just a few months ago, so we’re still trading relatively close to the bottom.

PMCM is also a marijuana related stock; earlier this year, the company announced it had plans to build two 30,000 square foot production facilities in Washington State, where legal sales have been slated to begin this month. If the bull rush caused by the start of sales in Colorado is any indicator, we could be in for a second surge of public interest in cannabis stocks in the very near future, as we’ve been reminding our readers quite often.

Thus, in coming weeks we will be paying closer attention to PCMC, and indeed all of the pot stocks we’ve been continuously tracking for a long time, so expect to see further updates in this and other plays in the sector.