Tag: CERP

CERP, SWVI & Extended Watchlist

Cereplast, Inc. CERP

After appearing on yesterday’s extended watchlist, CERP gapped up slightly at the open .0288 from the prior close of .0248. We saw a slight pullback to fill part of that gap, with the stock dipping as low as .025 first thing yesterday morning, after which it proceeded to push to a high of .0449 by early afternoon. The differential from low to high produced an opportunity for us to rake in up to 80% in profits on the day.

This stock is coming off of a dead-cat bottom, so we’d like to see it get above the 50DMA of .0552 for us to remain bullish. As you can see on the chart, indicators are starting to look strong, with the RSI coming off of being oversold and getting ready to pass through the 50-line. The PPO and the Slow STO just crossed over, and momentum is looking strong, with volume picking up over the past few days.

____

Swingplane Ventures Inc. SWVI

SWVI is another stock off of our extended watchlist from yesterday- this one gapped up to .19 after a previous close at .17. We saw a slight pullback to .1843, before the stock surged as high as .295 (closed @ .2899). In all, total intraday gains of 60% were possible, on huge volume to the tune of 88M shares.

We want to be cautious here, even while there may be gains still left to be made. We’ve seen a few large promo outfits touting this stock recently, so we just need to keep aware, and scan for the impending collapse that most often follows a big promotional push. The tail-end of those pullbacks generally produce bounceplay opportunities, of which we fully intend to take advantage. It will be all about timing when this comes to pass. We’ve been spot-on in timing the actions of SWVI so far, so join us in keeping this play on your watchlist as this round of promotions runs its course.

____

Side Note:

Of the remaining three stocks to appear on yesterday’s extended watchlist, two posted gains on the day: Pharma-plays PATH and KERX. It was actually the third day running that we mentioned PATH, which has made gains of 21% over just a few short days; quite a feat for a big board stock. This was on the strength of a news release outlining the company’s new treatment for acute migraines.

____

Extended Watchlist:
EMWW, FARE, NEWL, XRX, BIOD, CARV, RVLT

Legacy Wine & Spirits International, Ltd. | LWSP Update

Legacy Wine & Spirits International Ltd. LWSP

Just as we had hoped, LWSP made higher highs and higher lows on Tuesday to kick off this short trading week. After dipping as low as .014, the stock surged back to close at .02, gaining 43%

Our total gains since first mentioning the stock from a previous low of .004, stand on the order of 400% at yesterday’s closing price.

The company also put a PR out after market close yesterday. It is always interesting to see how a stock is affected following news that is un-traded upon.

NEW YORK, Jan 22, 2013 (GLOBE NEWSWIRE via COMTEX) — Legacy Wine & Spirits International Ltd. (Pink Sheets:LWSP), an importer and wholesaler of fine wines in China since 2008, announces that the Company intends to take advantage of the changing trends and growth that the wine industry in China is experiencing, and will be focusing its 2013 sales and distribution of mid to lower priced imported wines towards Tier 2 cities in China.

Currently there are 20 million consumers of imported wine in China, just 1.5% of the population. According to Wine Intelligence, a global wine and market research authority, they estimate that the number of wine consumers will increase to 80 million by 2020, with the bulk of the new wine drinkers coming from Tier 2 cities. Although the wine market is currently focused on Tier 1 cities like Beijing, Shanghai and Guangzhou, there are up to 30 cities in China with populations of 3 million to 8 million where wealth is increasing. The Tier 2 cities will be the main engines of growth for the wine business in China.

Legacy’s choice varietal to market in the red wine sector in 2013 will be Malbec from Argentina, which will provide excellent value for the consumer and has the potential to increase the Company’s market share given its relatively new presence in the Chinese red wine market. The fact that the affluent Chinese who normally drink higher priced imported wines are starting to appreciate the joys of finding undervalued quality wines will bode well for the Company’s selection of wines.

According to China Daily, China’s wine imports have jumped from 182 million units in 2008 to 391 million units in 2011 with no slow down in sight for 2013. Wine consumption in China has more than doubled in the last five years, according to Vinexpo, a wine industry expert.
BARCHART.COM is currently giving LWSP a “100% Buy” Rating.

____

Side Note:

We also have to give ourselves a pat on the back for including MKRS in yesterday’s extended watchlist, as the stock opened at .17 before shooting as high as .60 just 10 minutes into the session. We will never thumb our noses at such mind-numbingly rapid gains! Over 250% in a matter of minutes! There was even a chance for another play later in the day after the stock pulled back to .12 prior to running into the .20’s, tacking on an added 75% gain. This is exactly why we try to emphasize the fact that the symbols on our daily Extended Watchlists are every bit as important to monitor as our focal points.

____

(Another) Side Note:

Many analysts are predicting that the S&P will return to 2007 highs of 1550. For this reason, we will continue to monitor the activity on SPY Calls- Yesterday the SPY 148.00 call traded as low as .66 and closed at its high-of-day at 1.58,

bringing up to 140% in intra-day gains to savvy traders able to time the bottom correctly.

____

Extended Watchlist:
SWVI, CERP, TELK, PATH, KERX