Tag: CIMT

Blue Horseshoe Stocks: Commenting on PBR & More

Petroleo Brasiliero S.A. (Petrobras) PBR

Amid allegations of money-laundering and bribery which extend high up into the Brazilian government (including former PBR board member and President Dilma Rousseff) the sixth-largest energy company in the world, and a point of focus for us all year, could be forced to write down billions in assets and reduce dividends. The company’s Q3 financials are being delayed indefinitely as a result.

The long-term implications of such a scandal are too vast and varied for us to make even a brief assessment accurately. What we can do is stay extra tuned to the PBR newsfeed to stay as up-to-date as possible on current events and adhere to our technicals, because we can still see potential on the chart.

On Tuesday, PBR hit its all-time low of 8.80. but has since made higher lows and higher highs over the proceeding sessions. After we tagged it on Friday morning, there was a 9% intraday move from 10.08 to $11, and this morning the premarket high is 11.51, which will act as immediate resistance as the session kicks off. We’ll want to see support hold at roughly 10.85, but if PBR can break past this morning’s high to confirm its continued uptrend, the next thing we’d be looking for is the filling of a gap on the chart from approximately $12-12.50.

As far as options go, we’re presently looking at the Jan 17th $10 and $11 Calls, provided the current trend continues.

Prosensa Holdings (N.V.) RNA

RNA is a stock that we tracking periodically this spring and summer, and we just wanted to comment quickly on the buyout offer the company announced this morning. In a $680M deal, Prosensa will receive around $17.75/share from buyer BioMarin Pharmaceutical.

Following an alert we put out on RNA back in May, the stock was trading at a low of 7.96; this morning’s premarket high of $19 means we’ve seen more than a 130% move in this play over a span of about 5 months.

Extended Watchlist:
MOLG, GERN, CIMT, SYN, AEMD, MY

GOGO, NQ, GERN & Extended Watchlist

Gogo, Inc. GOGO

We’ve been pounding the table on GOGO for the past couple of months, and the stock had a great session following yesterday’s mention on the strength of their earnings release. From our initial alert price at 14.79, yesterday’s high of 24.85 represents a gain of 68% on roughly 6 times the 3mo average volume.

3rd Quarter Earnings Highlights

GOGO ATG4 Video

NQ Mobile, Inc. NQ

NQ also had a fruitful session to kick off the week yesterday, trading from a low of 11.55 up to 13.55, a 17% intraday gain.

The low following our first alert on NQ was 8.42; yesterday’s high represents an increase of 61%

Geron, Corp. GERN

GERN behaved as expected yesterday; if you recall, we were looking for the stock to reverse its downtrend, and it did find a bottom at 4.69. The resulting bounce pushed the price up 10% to 5.18, and the stock closed at 5.05.

Moving forward were looking for GERN to achieve higher lows, holding support above yesterday’s low of 4.69.

Extended Watchlist:
REVI, VNDA, ARIA, PERI, DNDN, CIMT, RNA

DCTH, ZLCS & Extended Watchlist

Delcath Systems, Inc.  DCTH
Following its inclusion in yesterday morning’s extended watchlist, DCTH would go on to have a massively successful day of trading. The stock, after briefly touching a bottom at the .402-mark, went on an absolute tear as it reached a high .66 around lunchtime.

A single-session gain of 64% on the first day we placed DCTH on our watchlist is certainly nothing to sneeze at, and given the circumstances behind the upward surge, that may have only been the beginning.

The company received word from the FDA that its Primary Liver Disease treatment, ChemoSat, had received “orphan drug” designation, a classification which denotes a drug or procedure that is aimed at a disease which affects less than 200,000 people. About 26,000 Americans are diagnosed with Primary Liver Disease each year.

(Thomson Reuters ONE via COMTEX) — New York, NY – October 1, 2013 – Delcath Systems, Inc. (NASDAQ: DCTH), a specialty pharmaceutical and medical device company focused on oncology, announced today that the U.S. Food & Drug Administration (FDA) has granted the Company orphan drug designation for melphalan in the treatment of patients with hepatocellular carcinoma (HCC, or primary liver cancer). >>>FULL STORY

Side Note:
We rarely see stocks in this price range with an active options chain, but DCTH is an exception. The 12/21 .50 Calls jump out at us at first glance. If the stock were to approach a dollar between now and the expiration date, one could be looking at triple-digit gains.

Zalicus, Inc. ZLCS

Coincidentally, ZLCS, a stock that we’ve been following since the beginning of last month, also received a recent FDA orphan drug designation for its experimental Z160 drug, intended for the treatment of pain related to the Shingles.

Hitting a high of 1.38 yesterday, we finally saw ZLCS fill the gap on the chart that we had been pointing out for some time. Since we’ve been following ZLCS, we’ve seen a low of .78, and yesterday’s high represents a 77% gain off of that bottom. The filling of that gap was a pretty good indicator that it was time to take profits off of the table, so we certainly hope that folks were able to take advantage.

This morning, they also announced a reverse split, the result of which should be the stocks continued listing on the Nasdaq Capital Market, as it should enable shares to remain above the 1.00 minimum bid price required for listing. We would expect shares to come away from this split valued in the $6.00-range, and sure enough, we are seeing trades go off as high as 6.45 pre-market.

Zalicus Inc. (Nasdaq Capital Market: ZLCS) today announced that it has filed a Certificate of Amendment to its Sixth Amended and Restated Certificate of Incorporation, with the Secretary of State of the State of Delaware to effect a 1-for-6 reverse stock split of Zalicus common stock, effective as of October 3, 2013 at 12:01 a.m. Eastern Time…The reverse stock split will reduce the number of shares of common stock issued and outstanding from approximately 147.5 million to approximately 24.6 million. >>> FULL STORY

Extended Watchlist:

VICL, CRRS, CIMT, MNTG, RNN, MSTX