November, 2018 | Blue Horseshoe Stocks

Blue Horseshoe Stocks: Options Recap, Form-4’s

Campbell Soup Co. CPB

After Campbell’s beat on earnings, we formulated an options idea in yesterday’s premarket report to go along with the activity we were observing. Our targets were the CPB Weekly $38.50-40.50 Calls, and despite a down day for the markets in general, CPB produced just the right performance to allow for some really nice gains.

Every single one of the five contracts contained within our designated range produced a big opportunity for quick profits.

$38.50 Calls – Range: 1.50-2.94 – Max Gain: 96%
$39 Calls – Range: .91-2.52 – Max Gain: 177%
$39.50 Calls – Range: .83-2.05 – Max Gain: 147%
$40 Calls – Range: .55-1.80 – Max Gain: 227%
$40.50 Calls – Range: .40-1.40 – Max Gain: 250%
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Fresh Options Idea:
ADSK Weekly $131-133 Calls

Form-4 Alerts

Aside from earnings-related options ideas, we also routinely scan for Form-4 submissions indicating insider buying on stocks that are at or near a relative low. We also look for stocks whose charts have large gaps to fill to the upside.

Both of the following stocks we’re placing on bottom watch here check all of those boxes, as you can see on the included side-by-side charts. We’ve also formed a corresponding options idea for both:

Zillow Group Inc. Z
01/18 $30-40 Calls

Coty, Inc. COTY
01/18 $8-10 Calls

Extended Watchlist:
SGSI, INPX, FPAY, BJ, TAOP, NVLN, CREG, PAGS, CMCM, BZUN, NBEV

Blue Horseshoe Stocks: Post-Earnings Options

Spectrum Global Solutions, Inc. SGSI

The first thing we want to do this morning is to go over the performance of SGSI following our detailed report published in the premarket. If you didn’t catch it, we urge you to read it over now (>>View Report).

Aside from going over some of the attractive features of the company, we indicated that the stock had reached a double-bottom area of support, and the activity unfolded as a classic bottom bounce play, complete with some excellent volatility. The stock traded from a low of .265 and hit a daily high of .45. That’s a 70% intraday swing which came on more than four times the monthly average volume.

We’ll be very interested to continue tracking this play in the days and weeks ahead. We’ll look for it to establish higher highs and higher lows, and potentially make a run at the current 50DMA of .6275.

Fresh Ideas

We’ve also got a pair of post-earnings options ideas to add into the mix this morning.

Campbell Soup Co. CPB – Campbell’s beat on earnings even as quarterly profit slid by nearly a third. Along with the help of solid guidance, the stock is up in the premarket. We’ll be tracking the CPB Weekly $38.50-40.50 Calls.
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Lowes Companies, Inc. LOW – Lowes had a mixed release as well, but looks bearish even after its own earnings beat, and the news that the company would pull back Mexico operations to focus more on the US Market. At the present time, we’re looking at the LOW Weekly $87-85 Puts.

Spectrum Global Solutions, Inc. (OTCMKTS: SGSI) Special Report

Good Morning Traders! Our primary order of business today is to provide a more detailed overview of SGSI, a stock that we have already mentioned, and had quite a bit of success with, in 2018. SGSI appeared in our premarket report back on April 25th, and we would subsequently observe a huge 135% run from a low of .005 to .0129.

The stock has since undergone a 1-for-200 reverse split (09/10/18), which resulted in an ultra-tight share structure with just over a million shares in the float as of October 18th (>>View Security Details). But before we get into the chart and the stock itself, we wanted to highlight the developments for the company which have us even more interested in SGSI this time around.

Spectrum Global, through its AW Solutions and ADEX Corp. subsidiaries provides telecommunications engineering and infrastructure services across the United States, Canada, Puerto Rico, Guam and Caribbean. With the help of these businesses, Spectrum recorded a monster Third Quarter, receiving more than $5.7 million in new contract awards.

On the subject of increased business, CEO Roger Ponder had this to say: “We continue to see an increase in client orders, both here and in the Caribbean, for the pre-construction and construction services necessary to support future small cell densification, distributed antennas systems (DAS), fiber network expansions and 5G wireless technology projects … With these latest contract awards, we are now tracking well over $35 million in annual revenue and moving closer to profitability.” (Source: Globe Newswire)

The CEO also noted the expectation for even further increased demand for SGSI services due ongoing recovery efforts from an active 2018 hurricane season. The company also recently received a large credit facility which will enable it to more actively pursue these business opportunities.

It is indeed the show of rapid growth in 2018 that has us interested in Spectrum Global at the present time. Recently reported financial results for the period ended September 30, 2018 showed a 300% rise in revenues from the same period in 2017. It also nearly doubled its net income attributable to common shareholders, year-over-year, and reported Earnings Per Share of .04, on a fully diluted basis. (>>View Quarterly Results)

Overall, we see SGSI as a company on the rise, with all indications pointing to a continuation of this impressive recent growth. Now, for a closer look at the chart itself.
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SGSI CHART:

SGSI has consolidated in recent sessions, providing us with a potential buy-in opportunity as the RSI begins to indicate that the stock is oversold. We’ve seen two marked uptrends in as many months, and it appears as if SGSI is preparing for another leg-up. A theoretical return to highs established last month, would mean gains of over 300% from current pricing.

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For More Information Please Visit:
SpectrumGlobalSolutions.com
or Call Investor Relations at (561) 672-7068