Blue Horseshoe Stocks: Bottom Watch Plays

Activision Blizzard, Inc. ATVI

Despite beating on earnings in its postmarket release yesterday afternoon, ATVI reported fewer monthly active subscribers, and the stock has taken a gut punch as a result, falling to new annual lows in the mid-$50′s. The stock hasn’t seen a PPS this low since last December, and it went on to have a post-holiday run into March of this year, and yet another in the spring.

While we don’t expect an exact repeat of history, at present the stock is highly oversold, and we want to set up a longer-term recovery play to place on watch today and monitor going forward. We’ll be looking at the ATVI 01/18 $55-62.50 Calls for this purpose.


Bunge Ltd. BG

We’ve also taken notice of an interesting setup on BG, which has been recently trading at a double bottom, and whose CEO just picked up nearly a hundred million dollars worth of the stock here at these lows. He was also joined by another insider which submitted a pair of Form-4′s for the purchase of roughly $40M.

That’s an incredibly large bet on the part of the company’s leader, far out of the realm of simply trying to prop up his company’s stock. To invest that kind of money, would seem to imply a firm inside belief that BG won’t go much lower than what we’ve seen in the past week or so. We’ll place this stock on a Form-4 Bottom Watch moving forward, and monitor for the possibility of a nice rebound.


Extended Watchlist:
APRN, PRTY, GSL, REV,