Month: December 2014

Blue Horseshoe Stocks: Revisiting APP & More

American Apparel Inc. APP

This fall, for the first time in a long time, APP failed to see the increases that have coincided with the beginning of the retail season in recent years. Instead, here we are nearing the end of the heaviest shopping days of the year, and the stock is just now beginning to show signs of life.

CEO Dov Charney, thought by many to be one of the worst CEO’s on Wall Street, has been fired by the board of directors per a PR released this morning. His official dismissal amid allegations of misconduct is sitting well with investors, with the stock trading up significantly in premarket activity. We’ll be interested to follow APP more closely as the reigns are handed over to Paula Schneider on January 5th, and if she can turn APP back in a positive direction as the new CEO. >> Read About Charney’s Firing

Looking at the chart, the last time APP was trading as low as it has been in recent weeks was early this summer, just before the stock ran to over 1.20. We’ve covered APP for many years and have witnessed numerous big runs, so it wouldn’t be surprising to see a extended recovery off of these 6-month lows, if the stock can get over the hurdle that is the current 200DMA (.74). Beyond that, APP will have to contend with resistance points at .77, .85, and 1.09.

InterCloud Systems, Inc. ICLD

During this time of the year when tax-loss selling drives many stocks down to annual lows, we’re always on the lookout for a good bottom-bounce play. ICLD may fit that description. The stock touched 52-week low of 2.77 yesterday, and is currently trending up in the premarket.

The company released a PR this morning announcing  that its new business backlog was at record highs, ($32M) according to CEO Mark Munro, “This is a tribute to our growing sales organization and a competitive edge in our markets. InterCloud’s sales pipeline continues to grow month over month offering great upside as we move into 2015.” >>READ PR 

Extended Watchlist:
ECIG, XNY, CERS, PZG, SBGL

Blue Horseshoe Stocks: TLM, HGSH & FRO Recaps

Talisman Energy, Inc. TLM

We began tracking TLM on Friday after noticing the stock coming up off of its recently-registered 52-week low, and on that day we observed a low of 4.17.

The stock made higher highs and higher lows yesterday following another inclusion in our morning report, making definite progress, but with a surprise buyout announcement early this morning the PPS has gone into overdrive.  The all-cash transaction is valued at $8 Billion, and has been unanimously approved on all sides.

CALGARY, ALBERTA–(Marketwired – Dec 16, 2014) – Talisman Energy Inc. (TLM.TO)(TLM) is pleased to announce that it has entered into a definitive agreement (the “Arrangement Agreement”) with Repsol S.A. under which Repsol will acquire all of the outstanding common shares of Talisman for US$8.00 (C$9.33) per share in cash. >> FULL PR

The premarket high thus far today stands at 7.74, which marks an increase of 85% that we’ve witnessed in TLM over the course of just a few days. Congrats to anyone who caught our pre-emptive alert and was able to take advantage!

China HGS Real Estate, Inc. HGSH

Another winning call off of yesterday’s report was HGSH; the stock appeared in our extended watchlist, and went on to have quite a fruitful session. The stock would open and briefly touch a low of 4.63 before spending the rest of the day on the rise, culminating in an afternoon high of 5.96.

That solid intraday move came on more than 10 the 3-month average volume, and represented a highly respectable increase of 29%

Frontline Ltd. FRO

Despite seeing a gap-down in this morning’s pre-market on the heels of a debt-for-equity program announced by FRO, we did see a nice move out of the stock yesterday after including it in our last couple of newsletters. It made an intraday move from 2.53 to 2.95 (+17%).

We observed a low of 1.88 on Friday, meaning that yesterday’s high figured in as a two-day overall increase of 57%

BioLineRx Ltd. BLRX

BLRX also appeared in yesterday’s extended watchlist, and while it had a tough time getting going yesterday, the stock is up significantly in today’s premarket activity on the strength of a new PR so we’ll be sure to monitor the situation as the week progresses.

The company has signed an agreement with pharma-giant Novartis, under which Novartis has made an initial equity investment in BLRX of $10M for 12.8% of BLRX’s current shares outstanding. Read more about it in the following news announcement:

Blue Horseshoe Stocks: FRO, OPK, WLGC & More

Frontline, Ltd. FRO

At the beginning of this month when we first began looking at FRO, the stock was trading at a low of 1.33. It took barely a week for the stock to start inching its way up, and it has continued to do so up to the present.

By the time we re-flagged it in Friday’s morning report, it had already cracked the $2.00-mark, and we did mention that the level of momentum was primed to allow for further opportunities.

This morning FRO continues to push the envelope, setting a new high in premarket trading action. This morning’s top figure of 2.64 puts us just slightly short of double-bagger status, having shown us an increase of 98% from the lows we observed the week before last.

It can be argued that the bolstering of activity seen on FRO (and other shipping plays) is due to the continuing fall of oil prices which translates to savings at the pump.

Opko Health, Inc. OPK

OPK is catching our attention in the premarket as well, as a result of an agreement announced this morning with pharma-giant Pfizer to develop and commercialize one of Opko’s highly promising products which combats Growth Hormone deficiency. Peruse the following PR to find out more; the development certainly lands OPK a spot on our watchlist to kick off the week.

In instances like these where a play is sent through the roof on substantial news, we look for the resulting profit-taking to pull the stock back, where we wait to take advantage of a possible dip-and-rip scenario.

OPKO Health, Inc. (OPK) and Pfizer Inc. (PFE) announced today that they have entered into a worldwide agreement for the development and commercialization of OPKO’s long-acting hGH-CTP for the treatment of growth hormone deficiency (GHD)… hGH-CTP has the potential to reduce the required dosing frequency of human growth hormone to a single weekly injection from the current standard of one injection per day. >> FULL PR

WordLogic Corp. WLGC

Speaking of significant news, WLGC forces its way into our vernacular this morning on the heels of the announcement that the company will be teaming up with energy-leviathan General Electric (GE) in order to “monetize specific patented intellectual property in General Electric’s portfolio.”

With such a high-profile bedfellow, WLGC will instantly gain new recognition, and it will be very interesting to see how that translates to the chart.

Notable Gainers from Friday’s Extended Watchlist

Oncothyreon, Inc. ONTY – Range: 1.69-2.05   Gain: 21%

Organovo Holdings, Inc. ONVO – Range: 5.82-6.50  Gain: 11%

Extended Watchlist:
TLM, SN, BLRX, KEG, HGSH, CPST