Weight Watchers International, Inc. WTW
The hype-fueled wave of buying pressure connected to Oprah Winfrey’s announced investment in WTW continued to push the stock higher yesterday. We began on Monday by commenting that this would be one of the major stories of the week, and it has certainly turned out that way.
Though we’ve been focused on several different plays in the WTW options chain, the move we’ve observed in just a couple of sessions from the stock itself has been rather impressive as well. From Monday’s low of 10.76, we’ve witnessed a two-session increase amounting to 78% as of yesterday’s high of 19.15. After pulling back slightly the stock once again pushed past the $19-mark in premarket trading today.
As to the sustainability of this big run, we have to keep in mind that nothing has changed materially for Weight Watchers, which remains deeply in debt. As we said, the upward pressure is being caused simply due to the perceived value of Oprah’s name and inclusion on the board. We’ll continue to take advantage of the momentum while it’s still possible, but take it under advisement, that at some point this hysterical buying will give way to a substantial selloff as traders actualize their recent substantial gains. On the other side of that eventuality, we’ll also be ready and waiting to formulate some related bounce-play ideas.
MaxSound Corp. MAXD
We included MAXD on yesterday’s extended watchlist, and the stock did come through with a fair opportunity to bank a significant profit with the intraday increase it managed. We observed a daily low of .0275, which gave way to a subsequent high of .0372. That registered as a solid 35% upswing, and occurred on a fair amount of volume to the tune of more than thrice the 3-month average.
The look of the chart still appears bullish, with the RSI about to breach into the powerzone and the MACD showing upward divergence. The next areas of resistance beyond the 200DMA of .041 are sitting at .045 and .055. Yesterday marked the third consecutive session that MAXD posted higher highs and higher lows, qualifying it for momentum play status. Provided it continues to follow that pattern, we’ll remain interested in this play.
Peasant Kids, Inc. PLKD
We also want to pat ourselves on the back for our notion on PLKD a week ago today. We noted that we’d be interested in the stock if it could maintain support above its 200DMA of .0599 on a consolidation from the previous day’s run, and not only did it hold at .06 that day, but it has been on a continuous run since then. It culminated in a high of .14 yesterday, marking a five session swing of 133%
We’ll continue to stay hot on its trail following this morning’s announcement of a substantial share reduction:
MIAMI, Florida, October 21, 2015 /PRNewswire/ — Pleasant Kids, Inc. (PLKD) today announced that the Board of Directors has authorized a reduction in the amount of shares authorized by the company from 9,500,000,000 to 360,000,000 by filing a Certificate of Amendment with the State of Florida. >> VIEW PR
Extended Watchlist:
BIEL, GDSI, VAPE, PXYN,
DRNK, BYSD(Super-Subpenny Bottom-Watchers)