Blue Horseshoe Stocks: AEZS Recap & More

AEterna Zentaris, Inc. AEZS

We called AEZS in yesterday morning’s newsletter as a potential bottom play to kick off the week, and our timing really couldn’t have been much better. After opening at .55, it would run to as much as .65; a solid intraday increase totaling 18%

Any time we can make a quick profit off of a stock coming off of its all-time lows we consider it a big success, and will continue to monitor this stock for further opportunities it may present with any continuing rebound action.

The turnaround came in conjunction with a PR notice that AEterna had signed a license and technology transfer agreement pertaining to the company’s “doxorubicin” anti-cancer compound with Sinopharm A-Think Pharmaceuticals, a division of China’s largest pharmaceutical company.  >> Read PR

Energy XXI (EXXI) – Bottom Watch

Speaking of stocks trading at landmark low points, as an apparent result of the continued slide in oil prices in addition to a recent financial update that was poorly-received, EXXI has come down to find new 52-week lows.

We’re going to put this stock on bottom-watch, while noting that further losses for crude could actually cause it to continue pushing its lower boundary. That certainly seems to be the opinion of some analysts, but as ever, where others see lost ground, we see opportunity on the horizon.

Either way it shakes out, we could see a substantial recovery of the EXXI chart once oil prices begin to rebound, so we’ll tag it for our ongoing watchlist and monitor the situation moving forward.

Blue Horseshoe Stocks: ISR, Bottom Plays & More

IsoRay, Inc. ISR

We first began tracking ISR back in early October as a potential bottom play, and just a few sessions subsequent to our first mention, we would witness a low of 1.22 (10/16).

It took just a couple of weeks for us to ride ISR to a 66% gain as it ran to a high of 2.03 at the end of October. It consolidated down from that level, and for the past month or so the stock has been trading channel between 1.50-1.70.

ISR is catching our attention once again this morning, as we picked up on a new update over the press wire regarding the company’s Cesium-131 low-dose radiation therapy for brain cancer sufferers (Learn More About Cesium-131).

The Barrow Neurological Institute conducted studies with 27 patients with several variations of brain cancer, and the company is reporting that there was no recurrence of the disease on the treated sites in 26 out of the 27 candidates, where other treatments had failed. >> Read PR

We’re going to be interested to see how the stock picks up trading following the holiday week, especially with such an encouraging piece of news out in the premarket. So far, the ISR has gone as high as 2.08 in preliminary trading this morning. We could be looking at a dip-and-scenario once the session commences; to remain interested we’ll want to see support hold at a minimum of 1.89 as that would mark a 50% retrace from the current premarket range.

Potential Bottom Plays

AEterna Zentaris, Inc. AEZS absolutely fell off a cliff back in early November, following FDA denial of a New Drug Application AEZS had submitted. The stock has spent the intervening time bottoming out, and it is now trading at all-time lows. This is exactly the sort of situation that sends us into “vulture-mode”, where we’re on the lookout for any signs of recovery after a stock has been hammered down.

Frontline, Ltd. FRO is a stock that is in the process of coming off of a recent bottom, and is showing signs of life here in today’s premarket, currently trading in the mid-1.30’s.

Extended Watchlist:
JNUG, GRPN, AG, ONNN

Blue Horseshoe Stocks: TASR & Extended Watchlist

TASER International, Inc. TASR
On Wednesday, we indicated our interest in TASR via our extended watchlist, after noticing an extremely topical PR hitting the wires that morning. For those of you who might not have made the connection, TASER refers to the popular brand of non-lethal electric weapons. The company does in fact make a range of other “public safety” products as well, including body-worn video cameras.
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During a time when more and more people are calling for heightened law enforcement accountability, one apparent solution that seems to be gaining traction among citizens as well as civil servants is outfitting police with body cameras to continuously record their on-duty activity. On Wednesday, TASR announced that one department has made the move to full implementation with a large order (see PR below).

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We want to continue to monitor the stock, as it hit new 52-week highs on Wednesday, and is gapping up in premarket trading today. It will be interesting to follow this play, especially if more and more agencies make the move to body cameras, as TASER is already a trusted name in the field, and could fill a lot of that demand.
SEATTLE, WA–(Marketwired – Nov 26, 2014) – TASER International (NASDAQ: TASR) today announced the purchase of 623 AXON body-worn video cameras and a five-year subscription to EVIDENCE.com by the Winston-Salem Police Department. This order was received in the fourth quarter of 2014 and is expected to ship in the fourth quarter of 2014. >> FULL PR

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Side Note – TASR Options

Given the current scenario with the chart in blue sky territory, we’ll be on the lookout for a dip-and-rip setup, and in that event we’ll be focusing on the 12/20 $21 & $22 Calls for possible intraday flip opportunities during today’s short session.

Extended Watchlist:
VRNG, REDG (News), AVIX