We alerted KBLB in Wednesday morning’s premarket report, and on that day, we would observe a PPS low of .0261. Yesterday, the stock hit a high of .0395, for a respectable two-session upswing of 51%
Following that solid run-up, we saw the stock close at .0375, maintaining a vast majority of its advance. We’ll continue to keep a steady eye on KBLB, and look for it to maintain support above the .03-mark in order to keep us interested.
Potential Bottom-Plays
Rennova Health, Inc. RNVA – We have an interesting story unfolding with RNVA, and a potential rebound opportunity as well. After briefly cracking its 50DMA on Wednesday, the stock took a major gut punch yesterday as it gapped down immensely.
It seems a bit of an overreaction after reading the PR that apparently catalyzed the selloff. The company announced yesterday that it had priced a public offering with the intent of raising upwards of $8.6M in capital, expected to close by Tuesday. They set the purchase price at .45, which is why a massive slide to less than .30 seemed disproportionate.
We’ll be interested to see the activity in this now majorly-oversold stock in sessions to come.
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Ampio Pharmaceuticals, Inc. AMPE – Speaking of stocks that have recently gapped down hard and found new lows, we have AMPE hitting our bottom-play radar.
Similar to the aforementioned play, the selloff occurred as a result of what some might construe as over-reactive. The company released data from a clinical study at the end of last month on its osteoarthritis injection treatment that was poorly-received. However, while the primary endpoints of the double-blind study were not met, the treatment was markedly effective in improving the patients with the most extreme cases of the condition.
So the study was not a total loss, and the company made clear its intent to submit an FDA application for the treatment for those severely afflicted patients that were helped, and for whom no other non-surgical alternative exists.
That’s why we’ll be keeping an eye on AMPE to continue to regain some of its lost ground, as it has done over the past few sessions.
Options Ideas
JP Morgan Chase & Co. JPM – The first item on our agenda this morning is going to be to formulate an options trading idea for JP Morgan on the heels of the company’s earnings beat this morning, which has the stock gapping up here in the premarket.
We’re going to be zeroing in on the JPM Weekly $63.50-65.50 Calls for potential daytrades, and/or swing trades into tomorrow, depending on how the activity unfolds.
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Seagate Technology Holdings, Inc. STX – STX has recently been making a nice move after a large gap-up earlier this week. In the premarket it is pressing past the 200DMA(30.20) and looks as if it could continue to truck higher and fill the gap on the chart to $33.
We have a couple corresponding options ideas that could be in line for some nice gains; for daytrading opportunities this week, the STX Weekly $30-31 Calls, and the STX 07/22 $30.50-31.50 Calls for potential swing trades into next week.
Updates on Recent Interests
SAExploration Holdings, Inc. SAEX – Last week, we tagged SAEX as a bottom-watch play and after a few sessions of mostly sideways trading, the stock has finally begun to get some legs this week. The bottom, and our observed low, came in at .1385, and yesterday SAEX hit .298. That works out to a four session swing of 115%
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Gold Resource Corp. GORO – We’ve been tracking GORO closely since we entered it into the conversation at the end of June. At the time we had observed a PPS low of 3.19, and yesterday the stock continued to push its upper limits with a new high of 5.50. That represents an overall swing of 72% and a new 52-week high as well. Firmly in blue sky breakout territory, we’ll continue to keep an eye on GORO.
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Lot78, Inc. LOTE – After tracking it to some nice gains last week, we saw LOTE pull back slightly yesterday, to a swing low of .016 before it rebounded 37% back to .022. We’ll look for the stock to retest our previously observed high of .03, the breaching of which would put this one into blue sky breakout mode as well!
Yesterday we brought a couple of fresh options ideas to the table, and in both cases, traders could have fared quite well in terms of single-session gains.
Sage Therapeutics, Inc. SAGE – Weekly $40 and $45 Calls
$40 Calls– Range: 5.40-7.80 – Max Gain: 44% $45 Calls – Range: 1.81-4.96 – Max Gain: 174%
Shire plc SHPG – Weekly $187.50-195 Calls
$190 Calls – Range: 3.90-5.90 – Max Gain: 51% $192.50 Calls – Range: 1.40-3.79 – Max Gain: 171% $195 Calls – Range: 1.30-2.01 – Max Gain: 55%
Cheers go out to any of our readers who were able to take advantage of these solid intraday moves!
Potential Bottom-Bounce Plays
This morning we’ve taken notice of a couple of stocks that are trading near recent relative lows, which have also begun to show some life this week.
The Female Health Co. FHCO – We like the look of the chart on this one, which is coming off a multiple bottom and just managed to crack through and hold support above its 50DMA. The next area of resistance appears to be the channel between its recent swing high at 1.45 and the 200DMA of 1.57.
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Nate’s Food Co. Inc. NHMD – This stock has appeared on our watchlist in the past, and today, we’re circling back around to it purely from the look of the chart. Several indicators are pointing toward the chance of some sizable upswings in sessions to come, so we’ll want to monitor the situation closely.
We’re going to want to see it get back above and hold the 200DMA at .0089 as support going forward.
Barracuda Networks, Inc. CUDA – On Friday, we had just caught CUDA coming off of a heavy earnings beat, and we signaled our interest in a couple sets of contracts in the options chain to correspond with the expected activity. Specifically the CUDA 07/15 $15 and $17.50 Calls. It was a good thing that we did, because what followed were some eye-popping gain opportunities!
The $15’s have now traded up from a low of 2.55 to a high of 6.53, for an excellent swing of 156%, while the $17.50’s have amazingly run from .60 to as much as 4.10, a huge 583% rip!
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Petroleo Brasiliero S.A. (Petrobras) PBR – We’ve drawn off of the PBR well countless times in the past, and our most recent idea, the PBR 07/15 $6.50 and $7 Calls (which we submitted on the morning of June 29th) has paid off with a couple of sizable swings.
In the roughly two weeks since we tabbed these plays for observation, we saw the $6.50 Calls run first from .30-1.07 (+256%), followed by a dip back to .35 and a rip back to 1.27 (+263%). The $7’s provided similar, yet even bigger action as they initially saw a move from .15-.69 (+360%), followed by a second from .14-.85 (+507%).
We expect the gains mentioned here to be extended as PBR is gapping up again this morning, and we may need to consider rolling up our strike prices to the $7.50 and $8 Calls as the situation dictates.
Gold Resource Corp. GORO
We also want to provide an update on another idea from the end of last week. We were circling back around to GORO on Thursday, a play we’d begun tracking two weeks prior from a low of 3.19.
Since our re-alert on Thursday, GORO has logged higher highs and higher lows in all three sessions. From Thursday’s low of 4.35 to yesterday’s high of 5.44 was a solid 25% upswing, and from our observed low of 3.19 (06/28), it marked a total increase of 71%
New Colombia Resources, Inc. NEWC – Special Report
The topic of this morning’s special report is New Colombia Resources, a company which interests us for a number of reasons, not least of which being the set-up of the current chart. But before we take a look at NEWC from the technical side, we’re going to go over various aspects of its diverse business that we also feel make this an attractive stock.
NEWC actually qualifies as both a medical marijuana and a mining play. It isn’t often that we find a company with a dual focus that has a solid foundation built for all aspects of its business, but that certainly seems to be the case here.
Coal Mining
In terms of its resource-mining projects, NEWC is focused primarily upon metallurgical coal reserves. Metallurgical coal is used for the production of steel, silicone, and all manner of other specialty metallurgical materials.
This spring, the company was approved for, and paid all required taxes on a 2900-acre mining concession by the National Mining Agency of Colombia (>>View PR). It added considerable acreage to the company’s already expansive metallurgical coal properties, including the La Tabaquera Project, which holds an estimated 17M tons of coal. Additionally, per a recent announcement, New Colombia was furnished with a Letter-of-Intent from a major Chinese construction company, which pledges upwards of $200M toward the development of the 2900-acre concession. (>>View PR)
The enormous new concession is also located less than 7 miles from the Ruta Del Sol, a new ‘mega-road’ which connects the Colombian interior to its coast, simplifying and economizing the transportation of raw materials for purposes of exportation.
In fact, most of the metallurgical coal that is imported and used in the US comes from Colombia. In certain areas of the eastern and southern US, it’s actually cheaper to import the material across the Caribbean from Colombia than it is to obtain and ship it overland from domestic sources, and NEWC has itself positioned to take advantage of this dynamic. The company believes its reserves to consist, at least in part, of what is known as Blue Gem coal, a high quality, desirable type found only along the KY-TN border here in the US, and in Colombia.
Medical Marijuana
The other major aspect of NEWC is its Sannabis subsidiary’s involvement in the cannabis sector, which as all of our readers are aware, is a burgeoning space that we value highly. The company’s interests are purely on the medicinal side of things, with no current plans to branch into the recreational market.
For the time being, their business in this arena is limited to Colombia, but there they offer a wide range of cannabis-derived products for medical marijuana patients, via their online store, and in select outlets across the country. These products include, but are not limited to, cannabis oil blends, relaxants, and pure cannabis extracts of both the Indica and Sativa varieties (>>View Sannabis Products).
Perhaps most impressive are the company’s profit margins on these products, which range from roughly 260-2100%. These figures are possible because of the company’s extremely low production cost on cannabis. At just over $33 a pound, NEWC has lower production costs than any US-based outfit possibly could. In fact, the costs associated with producing marijuana-based products is cheaper in Colombia than anywhere else on Earth!
The company will also be rolling out a book entitled Doctor Cannabis with the help of a branch of Grupo Planeta, the world’s largest spanish-language international publisher. The book will focus on the human body’s reaction to medical marijuana, and received contributions from Sannabis’ scientific advisor, Dr. Robert Melamede, Ph.D, with the dual purpose of both educating the public on the healing properties of marijuana, as well as bringing brand awareness to Sannabis’ product line.
CEO John Campo has stated his company’s intent to bring a new level of affordability to American medical marijuana markets with Sannabis’s 100% Colombian-grown products. We’ll be certain to stay tuned for future updates on this particular subject as well as everything else that NEWC has cooking at the moment!
NEWC Chart:
On top of the above-mentioned aspects, NEWC also has a solid chart that we’d like the look of regardless of the company’s backstory.
As you can see on the chart below, the PPS recently broke past the 50DMA(.017) and has held support above the 200DMA(.011) on all of its recent pullbacks. If NEWC were to retest May’s swing high of a nickel, that would represent gains of 150% from Friday’s closing price of .02. Even a retrace back to .03 would equate to a 50% move from the current level.
We’ve also provided a video presentation of the current chart for your viewing convenience:
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You can check out a clip from a recent feature of Sannabis that was all over the news in Colombia, here: Watch Video
