Blue Horseshoe Stocks: Wrapping Up the Short Week

American Green, Inc. ERBB

As we prepare to adjourn for the long holiday weekend, we want to circle back to an alert we issued on Monday regarding ERBB’s status as a potential bottom-bounce play. The resulting action fit neatly into that category, and all in all the stock went on to log solid move for the week.

It began with an initial dip to .0037 Monday, where the rebound began to occur. Yesterday the stock registered a high of .0045; that hashes out to a solid three-session swing of 22%

With the stock closing at .0042 yesterday, maintaining a good portion of its advances, we’ll want to keep a spot reserved on our watchlist for ERBB. We’ll look for it to continue registering higher highs and higher lows, and maintain support at the .0037-.004 range, eventually breaking back above resistance at .005.


Pervasip Corp. PVSP

PVSP is an old favorite favorite of ours; we tracked it over more than a thousand-percent gain early this year, as well as a nice 66% intraweek swing at the time of our last mention in the 1st week of June. The stock has been heating up again this week, with the PPS cracking above the 50DMA (.0014) yesterday, and managing a strong close one tick above at its high of day at .0015.

We’re going to look for the stock to make a strong finish to this short week, and keep our ears to the tracks for the forthcoming acquisition update promised in Monday’s letter to shareholders.  Apparently PVSP is putting the finishing touches on obtaining “a revenue-producing retail distribution company servicing the hydroponic and indoor grow facility market in Denver, Colorado. so we’ll be keen to receive further information on that when it becomes available.


Definitive Rest Mattress Co. DRMC

We wanted to recap the action on DRMC following its appearance in yesterday’s morning report. The stock executed a dip-and-rip pattern around midday that carried it over a range from .0027-.0035; an intraday move of +30%  This occurred on almost 3x the monthly average volume, but in and of itself the volume was still relatively light. A pickup in buying pressure could really send DRMC for a ride, so we’ll keep watch for that, and for the stock to continue maintaining support above the 50DMA.


SPY Options Update

On Tuesday, we formulated an idea for trading SPY options on the heels of some market pressure caused by the uncertainty surrounding the current situation in Greece. We would look at 205.50-207 Puts and Calls until a trend was firmly established, and then determine our course of action. When the SPY found support above the 200DMA and began to rebound, that’s when we were able to identify the Call-side as the way to play, and the bulk of the action came in the $207’s during yesterday’s session.

There were multiple swings of significant magnitude which provided potential gains. First, from .90-1.26 (40%), followed by another from .75-1.00 (33%), and a third which ranged from .66-1.05 (59%). That worked out to a cumulative total of 132%  for the day.


Extended Watchlist:
HNSN, PVCT, BLDP, NAVB, TSLA($275-280 Calls, watch for dip-and-rip)

Blue Horseshoe Stocks: Special Report


Definitive Rest Mattress Company DRMC

This morning we’re going to be taking a look at DRMC, a company which has been undergoing some big changes in direction in 2015.

Prior to this year, DRMC was in the mattress business as its name suggests, however this January it was announced that a drastic shift into the Aerospace, Machine Tool, and Industrial Metals sectors was set to take place.

The transition began with the solid first steps of beginning to disband the mattress business and acquiring NU Metals Technology, a company that provides high grade metal and tooling solutions for the manufacturing of aerospace components. At the time, CEO Juan Carlos Murga called it “only the beginning of many other business ventures that DRMC is developing” >>View PR 

As the year has progressed, so has DRMC’s metamorphosis, with the formation of a new CNC (Computerized Numerical Control) Division, and the official declaration of its intent to change the corporate name to reflect its new direction, which should be coming up soon. >>View PR


We learned that ACCUT Machinery Ltd. gave NU Metals Technology exclusive right of representation of its CNC machines for the entire North American market (US and Canada) >> View PR


NU Metals also has a partnership with Turkish burnishing tool firm, YAMASA. Burnishing is a metal finishing process used in the fabrication of implements for the automotive, agricultural, and aerospace industries, just to name a few.  Through NU Metals Technology, YAMASA’s roller burnishing, skive burnishing and deep rolling solutions are now available in North America.

A little over a week ago, another PR came across the wires with an update reporting “New products, increased sales with solid contracts and strong customer base.”, and it was suggested that shareholders will be pleased with the figures in the next quarterly report. >> View PR

We’ll be sure to stay tuned for that and other future updates, but in the meantime, we’re identifying some short-term potential on the chart as well.

DRMC CHART

Here’s a video presentation of the current DRMC Chart:

For More Info Visit:
NuMetalsTech.com