Tag: AERI

Blue Horseshoe Stocks: CHKE Recap, Options Ideas & More

Cherokee, Inc. CHKE – Update

We flagged CHKE yesterday as a stock we felt was undervalued coming off of a particularly rough month that saw it get beaten back to new 52-week lows. Our ‘bottom-feeding’ sense immediately kicked in, and in a timely fashion at that. The stock did indeed exhibit the early signs of a recovery, registering higher lows than the session prior, and making a modest move up from 14.67-15.83 (+8%).

We’re going to want to continue to track CHKE for the possibility of a protracted rebound (Remember, there is also a massive gap to fill on the chart), and in that event we’ll be looking to possibly take advantage using the CHKE options chain. We’ll look at the only contracts that had open interest yesterday, which were the 10/16 $17.50 Calls (Last Trade: .30).

If CHKE were to regain even half of the ground lost between its current PPS and that of a month ago, those calls will be pushed deep into the money, and would provide us with a chance to profit tidily.

Santo Mining Corp. SANP

SANP is a super-subpenny play we flagged for observation on Monday, and it didn’t take very long for us to observe a nice move from the stock. Following a low of .0003 on Tuesday, SANP has made a good intraweek swing of 133%, trading as high as .0007 yesterday on volume which exceeded the monthly average volume by six times.

There really wasn’t a heck of a lot going on with this play prior to the beginning of this month, and this weeks activity has come on the heels of the company securing a new Chief Market Officer with an impressive resume, so we’ll be interested to follow along and see what he has in store in the way of changes for SANP.

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Added Note:

Speaking of super-subpennies, Embarr Downs, Inc. EMBR has caught our eye this morning as a play that bounced off of its 52-week low and made a brief move into subpenny territory yesterday. We’ll have this one on watch as well, in case further action provides a chance for quick intraday strikes.

Extended Watchlist:
AERI, CVC, SIRG, GTSO,
BGMD(Bottom-Watch)

Blue Horseshoe Stocks: NSPH, DLIA, POWR

Nanosphere, Inc.  NSPH

NSPH is the first of a few new plays that we pulled off of our scanner this morning. The stock made a big move on Monday after it was learned that Nanoshpere had landed a substantial contract. Yesterday the company received FDA clearance on one of its products (Verigene(R) Enteric Pathogens Test), but could not maintain a steady run as a result of an overall dip in the markets.

The stock is, however, gapping up again this morning. We may want to keep an eye peeled for this play, as it is still trading near a relative bottom at its current price range; the stock was trading at 2.50 and above as recently as March.

dELIA*s, Inc. DLIA

Next up, we have DLIA, which popped up on our scanner as something of a momentum play. The stock is coming off of a recent bottom, and has been exhibiting the signs of a bullish run. A quick review of the chart shows that DLIA has made higher lows and higher highs for the last three consecutive trading sessions, and continued to build up a head of steam yesterday, pushing through its 50DMA.

We’re seeing a sizable gap-up this morning as well, and as you can see the chart still looks extremely bullish. We have an RSI which looks like its just about to punch into the power zone, and a MACD which recently underwent a bullish cross. If DLIA can now manage to break through the 200DMA (.98), it appears to have a pretty clear path on up to the 1.25-1.35 range.

PowerSecure International, Inc. POWR

Last but not least we have POWR, which is another morning gapper. The stock fell off a cliff on worse-than-expected earnings back in early May. We are now seeing some of that gap being filled, and want to keep a close watch over this play for the remainder of the week at the very least.

The gap on the chart goes all the way up to more than $18, so a return to previous levels would spell gains of more than 100% Even if the stock can manage to get back above its 50DMA (Currently 12.49), it would yield profits in excess of 40% over present prices.

Today the company announced it had successfully modified the service arrangement with one of its major utility customers to improve the terms of its ongoing service as outlined in the PR below.

WAKE FOREST, N.C., June 25, 2014 /PRNewswire/ — PowerSecure International, Inc. (POWR) today announced that it has successfully modified the service arrangement with one of its major utility customers to improve the terms of its ongoing service.  The modifications include adjustments to pricing, work assignments, and expected improvements in the ongoing scope of work. >> FULL PR


Extended Watchlist:
AERI, AMPE, BGMD, SYN, FB, TWTR