Month: October 2017

Blue Horseshoe Stocks: Special Report

SNM Global Holdings, Inc. SNMN – Special Report

We’ve got an item of special interest to present today, in SNMN, a well-diversified holding company. Among the company’s present interests, which we will highlight below, is a recent entry into the cannabis space.

Our regular readers are well aware of our affinity for the burgeoning marijuana markets as a whole, so any time we notice another company attempting to carve out a slice of the pie, we always take notice.

Less than a month ago, SNMN announced the launch of a new wholly-owned subsidiary, Cannabis Payment Solutions, to be involved in all aspects of the legal cannabis industry.

The company describes it as a complete payment ecosystem for the provision of a cashless payment option for the retail, commercial, and industrial sale of legal marijuana. Using a mobile payment app combined with point-of-sale hardware, customers can quickly complete cash-free purchases at cannabis dispensaries nationwide. The registration system is HIPAA, KYC, and AML compliant and will have the most advanced encryption to maintain account security and data integrity.

Also in the pipeline for SNMN are a number of other current projects, including a unique franchising opportunity with a themed bar/donut shop, and plans for a significant share reduction to tighten up the structure.

The company released an update on the donut shop yesterday:

SNMN announced the official acquisition of all franchise rights as well as a joint venture of corporate rights to Naughty Girls Donut Shop (NGD), which features crafted donuts, pastries, desserts, and wine with a 1940’s motif.

Naughty Girls Donut Shop will open in Sterling, Va. with plans to expand into Georgetown, DC and beyond. The company hopes to grow the concept into a national brand in the near future.

So what we have in SNMN is a company with multiple irons in the fire, both of which are of extreme interest to us, and not only that, but the chart is currently setting up for what could be a big run.

We’ve pointed out the key resistance areas on the chart, which as you can see is exhibiting the signs of a potential bottom-bouncer.

SNMN made an incredible run of more than 700% from late this summer until the end of last month, and we’re going to want to keep a close eye out for its next leg-up, which could come at any time.

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Side Note: We had some really nice gainers in yesterday morning’s premarket report, which we’ll recap tomorrow morning. See you then!a

Blue Horseshoe Stocks: DIS, TRXC Recaps & More

 TransEnterix, Inc. TRXC

We made a good catch when we included TRXC in yesterday morning’s premarket report, after it was reported that the company’s robotic surgery device got the regulatory approval it needed.

The result was a very nice run from a low of  2.15 to 3.05, the highest PPS the stock has seen since the spring of 2016. That works out to an intraday push of 42% and this morning TRXC is edging even higher in before-hours trading, so we’ll want to continue to keep an eye on it moving forward.

Walt Disney Co. DIS

We highlighted some options ideas for Disney yesterday morning, after noticing that it had  a nice bottom setup on the chart, trading near its ten-month lows.

For a near-term idea we signaled the DIS Weekly $96-98 Calls and among those five contracts, three produced opportunities for solid single-session gains.

$97 Calls – Range: 1.15-1.57 – Max Gain: 37%
$97.50 Calls – Range: .81-1.22  – Max Gain: 51%.
$98 Calls – Range: .49-.89 – Max Gain: 82%

We also noticed that the $98.50s had the highest open interest, so we will want to roll up our observed range a little and keep an eye on those for the remainder of the week.

Netflix, Inc. NFLX

We also want to put a few options contracts in the NFLX chain on watch. The stock has been in a general uptrend for nearly all of 2017, with the exception of one month between late July and late August. Currently the stock is approaching extreme overbought levels on the strength index just as it was prior to that downturn.

On the flip side, boosted guidance and a strong earnings call this morning could make things interesting. Due to these opposing factors, we’re going to want to watch some contracts on both sides of the fence, depending on NFLX’s behavior once regular market hours kick in.

If the stock can’t get above $207.50, we’re going to zero in on the NFLX Weekly $207.50 and $205 Puts. Conversely, if it holds above $200 on any pullbacks, we’ll focus on the Weekly $200-205 Calls.

Extended Watchlist:
GSAT, MYSZ, NETE, TERP, SYNT, VYGR, NEOT, CLRB

Blue Horseshoe Stocks: Momentum Plays & More

 Possible Momentum Plays

We’re looking at a pair of stocks this morning that have broken out, and that we’d like to monitor on the chance that they produce sustained uptrends.

Leading Brands, Inc. LBIX – This was a fairly illiquid stock until just recently, when it broke out of a mundane pattern of low volatility and began a run into blue skies which lasted from Tuesday through Friday. We’ll stay wary of the possibility for course corrections, but a dip-and-rip scenario could definitely come into play here in coming sessions. The volatility has ramped up in a huge way, which is what we always look out for as swing traders.
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22nd Century Group Inc. XXII – In the case of XXII, the stock has traded in a fairly predictable pattern over the past few months, during which time it has formed a solid upward channel. The company also recently closed a $54M direct offering at 2.65/share. We’ll look for this one to continue to build, keeping an eye on it as we kick off a new trading week.

Walt Disney Co. DIS – Options Ideas

We also want to signal a couple of options ideas for Disney, which has a pretty nice bottom setup on the chart, trading near its lowest per-share pricing since December.

For a near-term idea, we’re going to be looking at the DIS Weekly $96-98 Calls and the DIS 11/24 $98-99 Calls in the event of an extended recovery, which seems due at any time now.

Extended Watchlist:
ABEO, CARA, CLSN, NETE, TRXC, RT, IBIO