Blue Horseshoe Stocks: MCPI, DRL Updates & More

Med-Cannabis Pharma, Inc. MCPI

To start things off this week, we’d like to congratulate any members that followed our coverage of MCPI last week to their benefit. We tracked this play as it ran from .355-.55 (+55%) between Monday-Wednesday.

On Thursday, the stock had consolidated back down to a low of .3776, and we mentioned that we were on the lookout for follow-up from the initial spike to provide us with a dip-and-rip opportunity, and that’s precisely what occurred. As we headed into the end of the week, the stock made another push that would exceed the first, and we actually observed a new high of .64 into the close.

The second spike of the week offered up by MCPI amounted to possible gains of up to 69% while Friday’s new high marked an overall increase of 80% from the low we observed on Monday.

Cheers to anyone who was able to take advantage of our timely coverage on this Washington State marijuana play.


Doral Financial Corp. DRL

We tagged DRL for the first time back on July 23rd, and since that time, have seen this stock trading as low as 5.20. This play caught our interest mainly because of the lawsuit they’ve claimed against the Puerto Rican Government.

As a result of a tax discrepancy, it has been alleged that the treasury owes DRL as much as $229M. This morning, the stock is flying high in the premarket on word that hearings for the suit have been suspended until next Monday, so that a settlement between the two parties may be reached.

This could further speed up the process, even after the proceedings were recently ordered expedited by the Puerto Rican Supreme Court. While it is not likely to be the full sum, a settlement could mean a significant portion of that figure going onto DRL books straightaway.

We’ll keep our eyes glued to this one, as we’ve already seen the PPS rise from 5.20 to this morning’s premarket high of 7.20, a respectable 39% increase over the course of roughly seven sessions.  The announcement of the completion of the settlement agreement, if and when it arrives, could catalyze even further gains.


Side Notes:

We also want to throw LKA Gold, Inc. LKAI into the mix today, a new gold play with a long history of producing mines.

Also, we’ll still be monitoring the PBR Options Calls. We played them like a fiddle last week, and will continue to utilize the action to our benefit. If the stock can get back above $16, we’ll be on the lookout for a substantial move out of the $16 Weekly Calls.


Extended Watchlist:
ELRA, IDST, MNKD, PIP, HGSH

Blue Horseshoe Stocks: RSH Coming Off 52-Week Lows

Radio Shack Corp. RSH

The last time RSH appeared in one of our reports was back in mid-May, and we’ve passively monitored the stock’s gradual consolidation over the few months since. On Tuesday, it registered an annual low of .55, and in each of the proceeding sessions, has maintained higher lows as the stock hints at a rebound.

Where a week ago we were looking at a steadily declining chart, we now appear to have one with several indicators turning in a favorable direction, and the price action is responding in kind.

What we want to see now, is a break of the 20DMA of .74 to really confirm that the stock is in recovery mode. We always like running across stocks coming off their 52-week lows, so we’re going to be monitoring the stock more heavily in coming sessions. The included snapshot below illustrates the indications of a ripening chart:


Med-Cannabis Pharma, Inc. MCPI

MCPI began to pull back yesterday after providing us with a good opportunity for gains this week. When all was said and done, we saw an overall increase of 55% from .355-.55, which is quite a respectable move.

In instances such as these, when profit-taking from a rapid move up creates a dip, we like to wait in the wings observing for a low point where we might collect cheap shares to ride into the next upswing.

We also want to keep an eye out for further updates on the three retail marijuana stores the company is setting up in the towns of Port Townsend, Port Hadlock, and Hood Canal, Washington.


Extended Watchlist:
JCP, MHR, VGL, DEJ, SPPI

Blue Horseshoe Stocks: PBR Options Update & More

Petroleo Brasiliero S.A. (Petrobras) PBR – Options Update

We called for a potential dip-and-rip play on PBR Calls yesterday, after following the contracts to gains exceeding 200% on Monday-Tuesday’s spike to .64. We did see the dip back down to the .30-range, and the subsequent rip came too, as the $16 Weeklies we’ve tracked from a low of .20 hit the 300% mark at .80 yesterday.

If you recall Tuesday’s report, we said: “Should PBR approach the 16.35-level, we would then have to consider moving up our strike price.”  PBR did indeed test and break that price target (HOD 16.76) during yesterday’s session, and as a result the $16.50 Calls went on a romp from a low of .18 to .46, an impressive single session move of 155%

We hope our meticulous and spot-on forecasting of the PBR Options chain this week has at the very least, illustrated why we like to cover options just as well as stocks. As you can plainly see, the chances for quick gains are plentiful under the right conditions, as evidenced by the exponential profits offered to us by this play, time and time again.

Even as the talking heads saw fit to downgrade PBR earlier this year, we’ve stuck with it as it was coming off of ten-year lows back in March at 11.25, and brought continuous coverage as the stock has bulled its way up to more than $17. This will definitely go down as one of the brightest spots in 2014, a year that has thus far been extremely good to us.


Med-Cannabis Pharma, Inc. MCPI

We mentioned that MCPI might see some momentum carryover from Tuesday’s session in yesterday morning’s report, and that’s just what we saw. The stock would make an intraday move of 25% from .4375-.5475.

.Monday’s initial alert on MCPI gave folks a chance to grab MCPI as low as .355, from which yesterday’s high marked an increase of 54%

It’s also given us a chance to get our feet wet within the slowly-forming Washington State-based cannabis industry. We’ll have our eyes peeled for others that are sure to pop up as the state makes its transition away from prohibition.


Added Note:

World Wrestling Entertainment, Inc. WWE 

Just to throw in a new options trading idea as we approach the end of the week, we’re going to be monitoring the WWE 09/20 $15 Calls, which closed at .50 yesterday.


Extended Watchlist:
HZNP, LIME, MCP, SAAS, SSYS, DDD