Month: December 2014

Blue Horseshoe Stocks: LXRP Special Report


Lexaria Corp. LXRP

It has been several weeks since we last zeroed in on a new interest in the cannabis sector, and this morning’s new topic of discussion, LXRP, falls under that category.

One of the main factors drawing us to this play is the total commitment the company has recently begun to show in focusing all its resources toward furthering its position in the marijuana space during a time when support for the allowance of medical marijuana in this country is at an all-time high. This includes the sale of domestic oil assets that will provide the funds to make the company debt-free for the first time since 2007, as well as continue to move forward with different opportunities involving cannabis and its beneficial chemical compounds.

There certainly are quite a few irons in the fire; the sheer number and content of recent press releases alone demonstrates LXRP‘s commitment to establishing itself as a player in both the Canadian medical marijuana market (through Health Canada’s MMPR program) and the U.S in places where marijuana and CBD-infused products are now legal. We’ll provide links to those announcements at the bottom of this report.

Lexaria began its shift toward cannabis back in March, when it teamed up with Enertopia Corp. (OTCQB:ENRT) in a joint venture that would go on to file an application with Heath Canada in July to produce 10,000kg of medical marijuana each year under the MMPR program. At $5/gram, those production levels could generate some $50 million per year in revenue of which Lexaria would be entitled to 49%. That application is still pending as the Canadian government sifts through the 1000-odd submissions it has received for medical marijuana producer licenses.

The venture with Enertopia, combined with another one struck with Huntington Property Group this spring, when all is said and done, could provide up to 140,000 square feet of growing space. According to some current producers figures, each square foot has the potential to yield up to $1000/year in revenue.

In addition to its joint ventures pertaining to grow operations, in November LXRP acquired 51% of PoViva Corp., which is where the CBD-infused products come in. According to the corresponding PR, “PoViva owns two patents pending that govern the process used to infuse the CBD into food products, and both patents pending are part of the acquisition.” For those who may be unfamiliar, CBD (Cannabidiol) is one of the 85 cannabinoid compounds found in the cannabis plant, and according to a growing number of studies, has a number of legitimately beneficial medical uses.

Something else that alerting us to the potential of LXRP is the tight share structure; a low float play like this one can move up on a puff of air, and has the potential to very quickly turn into the type of rapid mover that we’re constantly trying to track down.

With regard to the chart itself, the stock has been trending off of a bottom for the past several weeks, and for the first time in months, LXRP has breached and closed above its 20DMA. It appears key resistance is set up at the recent swing high of .11, and if LXRP can break that point, the next areas of resistance crop up at the 200DMA and 50DMA of .172 and .18 respectively. A return to those levels from the current price would mean triple-digit gains for LXRP so we’ll definitely have this one on our radars going forward.

This morning, we got a news update on LXRP‘s growers license application, with the company signifying that it has passed the preliminary screening phase, and is underway with the advanced screening phase >>> READ PR

OTHER RECENT NEWS:

Get More Info on LXRP @ lexariaenergy.com

Blue Horseshoe Stocks: ESSI Report

Eco Science Solutions, Inc. ESSI

We’re taking a first look at ESSI this morning, and it’s a stock that we’ll be very interested to keep track of in coming weeks. The company has a product under active development that we feel has major potential in the automotive industry.

The EcoFlora Spark Plug could present a disruption in the space, and the reason we like it so much is due simply to how much of an improvement it figures to be over traditional spark-plug design.

From the image above it may look like just a small difference, but in this case looks are definitely deceiving. The EcoFlora aims at achieving marked improvements in both horsepower and fuel efficiency using what is referred to as “Internal Pre-Combustion Chamber High Efficiency Spark Plug” technology.

Perhaps most importantly, it has performed exceedingly well in testing for its emission-reducing capabilities.  There are over 250 Million cars on the road in the United States alone (more than 1 Billion worldwide) and reducing carbon emissions is not only a top priority now, but will become even more so as pollution levels continue to explode.

According to the company’s latest round of efficacy testing, “In multiple cases, the EcoFlora spark plugs improved emissions and resulted in cars passing emissions that were previously failing.”‘ >> View the Full Report

The company is banking on a smooth transition from completion of development to the marketplace for the EcoFlora technology to take direct advantage of, or perhaps even foster a buyout from a larger company, which is certainly in the realm of possibility. That’s why we began by stating that this stock is one that we’re going to want to have our sights fixed upon moving forward; the potential disruption capability of the EcoFlora spark plug versus traditional models in the marketplace could be big.

 There’s also a few key points we’d like to highlight on the chart:

We’ll be sure to keep everyone abreast of any upcoming developments from ESSI on the business side of things. The company did promise a timely update on the final phases of spark plug testing in its last announcement, so we’ll be on the lookout for that first and foremost.

More Info @ ecosciencesolutions.com

Blue Horseshoe Stocks: Two New Plays & TASR Recap

TASER International, Inc. TASR

We re-tagged TASR in yesterday morning’s watchlist along with a link to the new PR pertaining to the influx of orders for body cameras from several law enforcement agencies across the country (View PR).

We’ve been tracking this play continuously since we first inserted into our reports the day before Thanksgiving. Over those 5½ sessions, we’ve observed a low of 20.79 (12/01), followed by a gradual rebound to back above the $24-mark.

In this morning’s premarket, the stock has thus far made its way to a high of 24.72, which represents an increase of 19% over Monday’s low. We’re going to want to keep close watch on this play as the national dialogue over the need for more stringent police oversight continues to heat up. As we stated in one of our previous reports on TASR, TASER is already a trusted name in law enforcement/personal safety products, and thus a natural choice for many of the agencies now considering the implementation of body-worn cameras.

Alaska Communications Systems Group, Inc. ALSK

ALSK is running like a scalded dog in concurrence with an after-hours PR from yesterday regarding the sale of the company’s wireless division for $300M.

Already up over 60% in premarket trading, we’re going to be on the lookout for a dip-and-rip setup to occur. After a big initial push, we’re no strangers to sniping out profits on a course correction and subsequent rebound.

ANCHORAGE, Alaska–(BUSINESS WIRE)–Alaska Communications (ALSK) has entered into a transaction to sell its remaining wireless assets to GCI Communications, Inc. (GNCMA) for $300 million and plans to use net proceeds to de-leverage its balance sheet. A stronger balance sheet, combined with top and bottom line growth, better positions the company to evaluate a variety of additional opportunities to create shareholder value.>> Full PR

Barristas Coffee Company, Inc. BCCI

We also have a possible momentum play to add to the mix this morning. In the wake of a PR announcing BCCI’s uplisting to the OTCQB yesterday, the stock began to trade up off of a  bottom and bull-rushed its way to close at its high of day (.05). The move occurred on more than 7X the monthly average volume, and any time we see momentum like that, we go on full alert for a potential continuation into the following session.

Extended Watchlist:
TRVN, IDRA, GERN, ICLD