Blue Horseshoe Stocks

CLNO, BRD, LSG & Extended Watchlist

Yesterday, despite an overall drop in all major US markets, we still managed to bring our readers a chance to get ahead. That’s right, amid the most down day that stocks have seen so far this year, 4 out of 5 of yesterday’s mentions closed in the green, while three of those provided us with opportunities to profit.

Cleantech Transit, Inc. CLNO

CLNO continues to yield gains, session after session. Yesterday, after opening up at .133, the stock managed to run as high as .165 ( a gain of 24% intraday), before settling back slightly to close at .16.

Lakeshore Gold Corp. LSG
&
Brigus Gold Corp. BRD

These two gold plays appeared on yesterday morning extended watchlist after coming off of recent lows, and each went on to produce some modest yet solid gains for the day.

LSG traded in a range from .20-.25, good for an intraday gain of 25%

BRD traded as low as .455, and touched a subsequent high of .503, for a gain of up to 11%

OPTIONS-TRADING NOTES:
The SPY’s LOD yesterday 155.73, and the HOD was 158.43. We are looking for that to push even higher today, on the heels of numbers released yesterday concerning US durable goods orders having increased 3.6 percent in the month of May. We’d like to see the SPY continue to make higher lows and higher highs. For the remainder of the week, so long as trends continue in their current direction, we are looking at in-the-money calls with strike prices in between $156-158.

As the market goes, so goes Apple. AAPL saw a low of 398.05 yesterday. In the event that we continue to see overall upward trending, we are looking at the $400 & 405 Calls.

Extended Watchlist:
SEGI, HEMP, MJNA, MWIP, OPTT, CBMX,

CLNO, STWG, & Extended Watchlist

Cleantech Transit, Inc. CLNO

At the time of our most recent alert (Jun.14th) we were marveling at the stock’s run from our first ever alert at .0055, to the high at the time, of .09. At that point we had already acheived gains of more than 1500% off of CLNO. But the stock wasn’t done yet. On Friday it reached a high of .148, adding a chance for another 64%

From the original alert price at .0055 (Called in March), Friday’s high represents an astonishing move of 2590% in just over three months.

We prepared a video presentation of the current CLNO chart:

S2C Global Systems, Inc. STWG

STWG has been consolidating recently after hitting a two-cent, 52-week high on June 10th. Over the past five sessions, the stock has been maintaining support at .008, just above a previous resistance level at .0076.

The last time we mentioned STWG, we stated that the company was working toward going current on OTCMarkets.com, and that we expected to see that happen soon. STWG has in fact managed to bring itself up to speed just as we anticipated.

We prepared a video chart for this one as well:

Side Note:

The volatility in the market since the Fed made its statement in reference to rising interest rate, and the tapering of quantitative easing has been substantial. Whenever we see conditions like these, it makes for some very nice options-trading opportunities.

In Friday’s morning report, we stated that we wanted to keep an eye on SPY Puts, and VIX/VXX Calls. As the Level 2 images below indicate, the $159 SPY Puts went from a low of .31 up to a high of 1.65. As for the $22 VXX Call, it traded from .16 to .81. Both of these chances for gains came before noon.

Extended Watchlist:
GPL, LSG, BRD (All coming off of recent lows)

DRRX, PPHM & Extended Watchlist

Durect Corp. DRRX

We are putting DRRX on our radar this morning; it has recently come off of a bottom, and is gaining some momentum as it begins its recovery. Prior to May, this pharmaceutical play was trading at a base level well above 1.20, before seeing a large spike followed by a sharp dropoff. If DRRX can break through resistance at the 50DMA & 200DMA there’s a chance it could come up to fill that gap on the chart. A return to previous levels from here could yield gains of up to 20%

In addition to a connection with pharma giant Pfizer, the company has also gotten FDA acceptance of a New Drug Application (NDA) as outlined in yesterday’s PR:

CUPERTINO, Calif., June 20, 2013 /PRNewswire via COMTEX/ — DURECT Corporation (Nasdaq: DRRX) today announced that the New Drug Application (NDA) for the investigational product POSIDUR (SABER-Bupivacaine) has been accepted by the U.S. Food and Drug Administration (FDA) indicating that the application is sufficiently complete to permit a substantive review. POSIDUR is a post-operative pain relief depot that utilizes DURECT’s patented SABER technology to deliver bupivacaine and is designed to provide up to three days of pain relief after surgery. DURECT submitted the NDA as a 505(b)(2) application. The Prescription Drug User Fee Act (PDUFA) goal date (the date the FDA expects to complete its review of the NDA) has been confirmed as February 12, 2014.

Peregrine Pharmaceuticals, Inc. PPHM

Speaking of pharmaceutical plays, one of the stocks that we continuously monitor is PPHM. Many of you will remember back in May when the stock provided us with some serious opportunities for profit.

Recently PPHM has been in a marked downtrend, and as you can see on the chart below, indicators seem to confirm this fact. We are going to want to put this one on bottom watch over the next several sessions, as the resulting bounce/s could be significant.

Side Note:

Since Ben Bernanke’s recent comments regarding the Fed’s upcoming tapering of quantitative easing measures, markets have been in freefall. If no reversal occurs and that remains the overall trend, we are going to want to keep an eye on SPY Puts, VIX/VXX Calls.

Extended Watchlist:
ONCI, ONCO, LIVE, KERX, MSTX

VHGI, Form-4 Scan & Extended Watchlist

VHGI is an old time favorite of ours (we’ve followed this play since back in 2011) that has crept back into focus. As we encourage our readers to do on a regular basis, we received some correspondence from a subscriber who wanted to be sure that we had noticed yesterday’s 8-K submission by the company.The report states that VHGI has obtained roughly $65 Million in new funding.

The chart is exhibiting some promising conditions as well, having made higher lows for the past four sessions. We’ve pointed to a couple other key indicators that would seem to suggest that it is a good time to begin monitoring VHGI more closely.

Form-4 Scan Vol.II
Most of you will recall our last Form-4 (Insider Trading) Scan back in May which yielded some pretty impressive results. It was that scan that first caused us to become familiarized with stocks such as CETV, and ETRM, which would each go on to produce gains of 30% or more.

We thought it was time for another round of checking for insider buying activity, which can often be a good indicator of the level of confidence an officer has in the future value of his/her company.

Click on each company to visit their filings page:

Zogenix, Inc. ZGNX,
The Wendy’s Company WEN,
Manhattan Bridge Capital, Inc. LOAN,
PRGX Global, Inc. PRGX

We are going to add these to the pool of stocks we are tracking, and see if they fare as well as our last batch of Form-4 plays.

Extended Watchlist:
CLSN, ASTI, MINE,

MINE, PGRX & Extended Watchlist

Minerco Resources , Inc. MINE

MINE is an old favorite of ours that we’ve tracked for quite some time. Just following our highlight of the stock earlier this month, we saw a 100% move from .0015 to .003. In the weeks that followed that, there was a pullback to .0014 as it geared up for another swing. Yesterday’s close of .0024 marked a gain of another 71%, bringing our aggregate gains for the month of June to 171% .

Currently we are looking for MINE to break resistance at the 200DMA of .0025. If it can push past that mark, we’ll be looking to test its recent swing high of .0032. Beyond that level, we could possibly see a challenge of an earlier swing high from February at .004.

Prospect Global Resources, Inc. PGRX
Yesterday PGRX caught our interest with a breakout session, trading up significantly on near-record volume, breaking through its 50DMA (.25) and closing at the its high of day at .267. We want to put this mover on watch this morning for a continuation of the momentum that we saw building up yesterday.

Orchard Supply Hardware Corp. OSH
OSH is gapping down significantly, so we will want to scan it readily for a bottom-bounce. The recovery could be good for significant gains if timed properly.

Extended Watchlist:
PLUG, CYTK, FNMA, MSTX