Blue Horseshoe Stocks: DRL, PLUG Earnings & More

Doral Financial Corp. DRL

Following yesterday morning’s mention of DRL and the opportunities it has sent our way over the past couple of months, the stock once again provided for us. This time, it came in the form of a classic dip-and-rip, making its way down to an early-morning low of 6.80 before spending the rest of the session on the rise. We saw shares changing hands at 7.68 just prior to the close, a modest yet solid intraday move of 13%

Estimates have DRL’s earnings release pegged for the end of next week, so it should be interesting to see how this play fares over the next handful of trading days.

Petroleo Brasiliero SA (Petrobras) PBR Update

PBR has fallen into a consolidation pattern over the past couple of sessions, and we are monitoring the chart for signs of a bottom. The stock crept below 15.50, its lowest price in a month.

We’d like to see PBR get back above the 50DMA of 15.68, but in the meantime, we’ll  need to see support hold above the 14.50-mark. Once we observe the telltale signs of another turnaround, we’ll be able to re-form our options trading strategies.

Plug Power, Inc. PLUG– Earnings Released

Our regular readers are well familiar with PLUG, a stock that has graced our reports dozens of times over the years, which we tracked over a mind-numbing range, .135-11.72, from early 2013 to March of this year. This morning will be a good time to turn our attention back to this hall-of-famer.

We want to keep an eye on PLUG in the wake of its earnings release early this morning. The stock is presently gapping up on the strength of record revenues, and looks to be gearing up for an interesting session. We’ve taken an excerpt from the PR, and provided a link to the full release below:

Total revenue for the second quarter of 2014 was $17.3 million, comprised of $12.6 million of product revenue, $4.4 million of service revenue and $0.3 million of research and development (R&D) contract revenue. This compares to total revenue of $7.5 million in the second quarter of 2013, which was comprised of $5.6 million of product revenue, $1.5 million of service revenue and $0.4 million of R&D contract revenue.

The Company shipped 687 units during the second quarter of 2014 compared to 246 units in the second quarter of 2013. >>> FULL RELEASE

Extended Watchlist:
KRED, ASTI, SYN, OIBR, FRO, FREE

Blue Horseshoe Stocks: MCPI, DRL, KNDI & More

Med-Cannabis Pharma, Inc. MCPI

First up this morning is an update on MCPI, which has been a juggernaut over the past week, beginning on August 4th at a price of .355. We’ve tracked the stock every step of the way, and yesterday, were pleased to see it break over a dollar.

At the high of 1.14, we were looking at an overall increase of 221% over the span of only seven sessions. Those who may have just picked up on MCPI following yesterday morning’s report, still had the opportunity to score some quick intraday gains as the stock ran 42% over its daily range from .80-1.14.

Anytime we see such rapid gains over so short a period, it starts to feel like the time to take at least a portion of our profits off of the table. However, unsustainable increases often lead to dip-and-rip scenarios as we’ve already seen from MCPI, so we aren’t done tracking it by any means.

Doral Financial Corp. DRL

Another recent successful call is DRL, which we first took notice of back on June 9th, at which time the stock traded at a low of 3.53. More recently, we re-tagged DRL on the 23rd of July, at a price of 5.23.

No matter where you mark our starting point from, yesterday’s move to a high of 7.47 represented chances for significant gains. From the 07/23 alert, it marked a solid move of 43%, and  from our earlier 06/09 call, an overall increase of 112%

Kandi Technologies, Inc. KNDI Options

We’ve had KNDI in our reports and on our radars quite a bit this year. We’ve watched recently as the stock has consolidated over the past couple of sessions, and yesterday’s pullback to 17.03 seemed a bit exaggerated. The stock appears to be a gapper this morning, currently trading up in the high 17.50’s.

Should a reversal occur we’re going to have interest in the options chain, specifically the 09/20 $17.50 Calls. As usual, we’ll adjust our strategy accordingly as the overall trend becomes clear.

Side Note:

We want to radar NII Holdings, Inc. NIHD this morning as well, a stock that was recently hammered back to 52-week lows. We’ll monitor for the eventual bottom and any bounce opportunities that may present themselves.

Extended Watchlist:
ICTL, BTCS, LIVE, HPJ, FCEL

Blue Horseshoe Stocks: MCPI, PBR & More

Med-Cannabis Pharma, Inc. MCPI

Exactly one week after we first brought it to our reports, MCPI continued to impress during yesterday’s session. The stock made an intraday move of 35% from .65-.88, and did so on nearly three times the 3-month average volume.

Calculating from our initially-observed low, the 88-cent high represented a one week overall increase of 148%, so congrats to any readers who were able to take a piece of the action.

This is going to be a play we’ll continue to track; per the timetable released in the Aug 4th PR regarding the opening of three retail marijuana stores in Washington, we should be receiving another update sometime in the next couple of weeks.

Petroleo Brasiliero S.A. (Petrobras) PBR

It’s beginning to seem as if we can peer through a crystal ball into PBR’s future with the way it seems to obey our predictions of late. Our subscribers will recall yesterday’s report  wherein we mentioned our intent to monitor the $16 Weekly Calls for the second consecutive week, and that we’d be “on the lookout for a substantial move” provided the stock could once again surpass the $16-level.

As it has so many times in recent weeks, PBR behaved exactly as we’d hoped it would, smashing through $16, and eventually reaching as high as 16.48. As a result, our contracts made a solid move from .35-.62, an intraday spike equaling 77%

Following the same strategy from last week’s successful play on the $16 Weeklies, when the stock continued to run past the 16.30’s, those who had moved their strike price and rolled into the $16.50 Calls could also have collected a nice profit, with those contracts trading in a range from .12-.32 (+166%).

Elray Resources, Inc. ELRA

ELRA appeared in yesterday’s extended watchlist after we caught it off of a routine scan toward the end of last week. The stock offered up a nice dip-and-rip scenario yesterday. After trading as low as .0072, we saw a subsequent high of .0134, for total possible intraday gains of up to 86%

Extended Watchlist:
FRF, SUPN, SAND, ARTX, CNAT