Blue Horseshoe Stocks: CBGI Update, Form-4 Scan & More

Cannabusiness Group, Inc. CBGI

After adding CBGI to our radar on Monday, (At a low of .0321), and putting the stock on high alert yesterday, we’ve managed to do very well with this new player in the medical marijuana game. If you recall, yesterday, we sounded the alarm on CBGI in our pre-market report, putting it on “high alert” after receiving news that the company had acquired a plot of land in California to commence its plans for a licensed cannabis grow operation. In addition, we pointed out the Golden Cross that was forming on the chart as another reason why CBGI was in a prime position to blow its top.

That’s exactly what took place, as the stock opened at .045, dipped briefly to .041, and the it was off to the races. We saw CBGI run 217% to .13, which also marked an overall gain of 305% from Monday’s low. Following that initial rip, the stock would pull back and bounce several times for added intraday opportunities, and landed us at the top of the Penny Stock Rumble:

Congratulations to anyone who was able to take advantage of the chance for quick-strike profits!

CBGI ended the day at .076 up over 120% from its previous close, and we’d like to see support hold in the .06-.07 range in order for this play to retain our interest. We are still on the cusp of seeing that Golden Cross, so we’ll be keeping an eye on CBGI through to next week, when it looks like that might occur.

Extended Watchlist Winners:

Pixelworks, Inc. PXLW

We’ve got to take a minute to applaud ourselves for another of yesterday’s selections. PXLW appeared in our Extended Watchlist and went on to have a beast of a day. The stock shot up from 6.31 to 9.05, a solid 43% increase, and did so on more than 30x  its 3-month average volume.

Fanny & Freddie (FNMA & FMCC)

Also making several appearances in our recent reports, we like the gains we’ve seen from this mortgage-lending pair. Both stocks have recently come from the $3.00-range and are now trading well over $5.00.

Form-4 Scan

Our regulars know that we periodically like to conduct Form-4 (Insider Trading) Scans, and have gleaned some big winners by doing so in the past (e.g. CETV made a 147% move for us). As a result of the one we ran this morning, we have a couple of stocks we’d like to throw into the mix:

Biodel, Inc. BIOD

BIOD popped up after several company officers filed their form-4’s which denote an exercise price of 3.37 (Currently trading in the mid-3.40’s), so we’ll be placing this one on our radar for sure. For our readers who may not be as well-versed, let us explain the significance. While Form-4’s reflecting the acquisition of shares by insiders shouldn’t be taken as a definite sign of something big brewing behind the scenes, it does suggest a certain in-house confidence in the stability of a stock that we like to see. It never hurts to put a stock on watch just in case there is something bigger going on.

Career Education Corp. CECO

The other one we spotted on this scan was CECO. A good number of Form-4’s have been submitted over the course of this week, so we’ll be throwing this one up on our radar sceens as well.

Side Note:

MLCG and MDCN are a couple of longer-term marijuana stocks that we think folks should have on their watchlists.

Extended Watchlist:

ENTB, BMSN, VELT & Extended Watchlist

Entest BioMedical, Inc. ENTB
BioMatrix Scientific Group, Inc. BMSN

We’ve talked about each of these stocks in the past, and wanted to bring them back into the discussion this morning. Both of these subpenny biomed plays has been trading in a sideways channel and have found new levels of support, and we’d like to start monitoring for any signs of increasing volume. In both cases, a relatively small amount of buying pressure could give way to some serious gains.

Earlier this year, ENTB brought us gains in excess of 960% as we called its run from .001 to .0104, and BMSN generated the opportunity at a mind-numbing 5400% in in monstrous spike from .0003 to .0165. Thus we are well aware of each of these stocks capability of making huge moves. We’ll be following closely through the upcoming fall season for any signs of history repeating itself.

Velti Plc. VELT

We added VELT to our watchlists yesterday, stating it was “gapping down to all time lows…” and to “keep on watch for a potential bounce”. We observed the stock fall to a low of .33, and this morning it appears that VELT is gapping up to the tune of 17% It’s possible that this is a signal of the bounce we were looking for, so this one will be near the top of our tickers today.

Extended Watchlist:

BMSN, NEWL, KNDI & Extended Watchlist

Bio-Matrix Scientific Group, Inc. BMSN
BMSN is an old-time favorite of ours, that we’ve most recently mentioned in both Friday and Monday‘s extended watchlists. On Friday, the stock was as low as .0032, which, at yesterday’s .0048 high, marked a two-session spike of 50% BMSN managed to get above the 200DMA, and broke above resistance at a recent swing high (05/06/13 @.0045). The next key resistance comes at .0062.

Side Note:
Also included in Friday’s report with BMSN was Entest Biomedical, Inc. (ENTB). The two companies are headed up by the same management team. After trading as low as .0019 yesterday, ENTB also made a run, closing at its high of .0026, a 37% move. We’ll be monitoring for a continuation of that momentum this morning.

NewLead Holdings Ltd. NEWL
Speaking of momentum plays, here’s one fresh off our morning scan: NEWL was rebounding off of a recent 52-week low and having a breakout session yesterday. The stock closed at its high of day, and even continued its ascent after-hours. We are going to want to watch this mover into today’s trading. Momentum like that often produces extended multi-day runs, and if that is the case here, we’ll want to take full advantage.

Kandi Technolgies Group, Inc. KNDI & Other EW Winners
We also wanted to give ourselves a hearty pat on the back for our timely inclusion of KNDI in yesterday’s Extended Watchlist. This NASDAQ-traded stock made quite an impressive daily run for a security in this its price-range, trading from a low of 7.20 up to 8.31, gaining 15% on the day.

Other gainers on the day from yesterday’s win-filled extended watchlist include OSH, IGLD, & RNN.

Extended Watchlist: