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Blue Horseshoe Stocks: A Word on Ebola & Much More

A Word on the “Ebola Effect”

In a hype-filled environment that is beginning to resemble early-2014’s cannabis “green rush”, most stocks with news announcements even remotely connected to the Ebola virus have been seeing exponential spikes in activity. Fear, no matter how irrational, can be one of the market’s most potent driving forces, and we are seeing affirmations of this left and right. Regardless of the cause or rationale, we are always standing at the ready to take advantage of powerful trends, and so far we’ve done a pretty good job of tracking down some Ebola-related winners in the last couple of weeks.. There were two in yesterday’s report alone.

NanoLogix, Inc. NNLX

NNLX was a standout which announced yesterday morning that it was “configuring its N-Assay Rapid diagnostic kits for both Ebola Virus and Enterovirus detection” and as a result, the stock leaped out of the gate to make a serious move first thing in the morning. It traded in a massive range, running rapidly from .06 to .18; a full 200% intraday move!

Aethlon Medical, Inc. AEMD

AEMD was another one we were tracking from yesterday’s newsletter, and the company subsequently published a report stating that it had used its “Hemopurifier” to treat an Ebola patient in Sierra Leone. It led to a 37% intraday swing (.19-26).

New Entry on Our Ebola Watchlist:

We’re also going to radar WholeHealth Products, Inc. GWPC after we caught an after-hours PR yesterday evening. With untraded-upon news on such a hot topic, we’ll be anxious to see how the stock responds today.

WholeHealth Products Inc. is extremely pleased to announce that it has completed its Phase 2 of the creation of a Rapid Ebola Test, which can be done as easily as a pregnancy test (Tue, Oct 14)

Accentia BioPharmaceticals, Inc. ABPI

While not an Ebola-connected biopharma play, were glad to have included ABPI in yesterday’s premarket report. Its SinuNase sinusitis treatment has been fast-tracked by the FDA, and the company happened to release word that “several unnamed pharmaceutical companies… have approached the company over SinuNase.”

The announcement caused a monstrous spike in early trading with stock jumping up from the open at .0065 and reaching .027! That works out to a mammoth move of 315% and there was also a subsequent dip-and-rip as the stock came off that initial high. It bounced off of a penny and ran back to .023, adding a 130% swing, and that was followed by yet another from .0107 to .018 (+68%).

In total, we witnessed 513% in cumulative gains for the day, so congrats to anyone who caught our tag, because even if you only took advantage of a fraction of those intraday moves, chances are you still walked away with a tidy profit.

ChinaNet Online Holdings, Inc. CNET

We’ve been tracking CNET pretty closely since we first caught it on a momentum scan back on Sept. 22nd, and re-tagged it in yesterday’s report. Following some news, we saw a couple of respectable intraday swings out of the stock. First, from 1.55 to 2.17 (+40%), and then again from 1.83 to 2.16 (+18%).

The company announced it was teaming with credit search engine Haodai and the Yooli crowdfunding outfit to offer “Zero Down Payment Loans” to entrepreneurs. >>View PR

Extended Watchlist:
APT, VSR, PPHM, RCPI, IBIO,

Blue Horseshoe Stocks: Great Way to Start the Week

Yesterday’s Winners

We’re happy to report that two of the mentions from yesterday’s premarket newsletter yielded prime-time opportunities for our members.

Alpha Pro Tech Ltd. APT

APT made a nice move for the second straight session; we called this one on Friday, and saw a low of 5.72 at that time. Toward the end of the day, as it did on Friday, the stock began to ramp up and set a new high for us, touching 10.47. That marks a two-day overall gain of 83% so cheer to whomever has been following along with us on this one.

Nanosphere, Inc. NSPH

NSPH was our other wildly-successful pick from yesterday, and like the aforementioned play, it too saw the bulk of its daily gain come in the latter portion of the session. The stock rose from a morning low of .70, and pushed its way to a high of 1.27 in the late afternoon.

That was good for an intraday gain of up to 81%, so cheers go out to all those who took advantage!

Options Trading – PBR

We want to touch base with our most recent options trading idea, the PBR November $16 Calls. With PBR showing some movement to the upside yesterday we did observe some positive momentum in those contracts.

We originally caught them at a low of 2.26 and they were able to reach a high of 2.63 yesterday, a 16% increase. Albeit a modest move, there is still plenty of time before expiration, so we won’t let these slip off of radar just yet.

Versar, Inc. VSR

We want to quickly put VSR on our radars today. Last week the company announced a couple of lucrative contracts, and the stock made some pretty heavy swings during yesterday’s session. It had gapped up big in the morning, and came all the way back to the 2.70’s in the afternoon before catapulting back to the 3.60 just prior to the close of the session.

We’ll be interested to monitor a play with this kind of volatility as we head into mid-week. A sharp eye could help us to catch any further opportunities that might present themselves.

Extended Watchlist:
AEMD, CERS, CNET, INO, RFMD, MNGA,

Blue Horseshoe Stocks: MKHD Recap & More

Mount Knowledge Holdings, Inc. MKHD

MKHD was a stock that we had to tag yesterday after noticing the company’s big announcement on our premarket news scanner that it would be acquiring 100% of cyber-security firm Civenergy, Inc., which did $35M in revenues in 2013.

We were anxious to see how the news would affect this low-float stock, and on 9x the average volume, it traded in a range from .042-.085, an intraday spike equaling 102%

We’re going to leave this play on our watchlist, at least until we receive further updates on the acquisition.

MKHD is also receiving a rare “100% Buy” Rating at BARCHART.COM

Terra Tech Corp. TRTC

Also among our interests from yesterday, and indeed the past couple of sessions, was TRTC. We re-flagged this play on Friday at a low of .25, and have witnessed a solid two-day uptrend since then. After seeing a low of .3060 yesterday, the stock would run into the close, ending the day at its high of .37.

That marked a 21% intraday gain, and an increase of 48% over our observed low on Friday.

dELiA*s, Inc. DLIA

DLIA is appearing this morning as a possible bottom-play. The stock is gapping up this morning, and there seems to be a gap to fill on the chart roughly to the 50DMA of .46. Per a PR out this morning, DLIA is “considering a possible sale, merger or ‘other form of business combination‘”, so this is another one that we want to continue to follow as a potential story plays out.

Extended Watchlist:
CNET, CPRX, WYY, SPEX, NXTD

Blue Horseshoe Stocks: Cannabis Stock Resurgence

Marijuana Stocks Making a Comeback

The biggest standout of yesterday’s session was the unmistakable resurgence of the cannabis sector. Many of you will recall that we have tracked this sector throughout the year, and indeed, dating much further back than that. The gains we’ve seen from this market in 2014 have been nothing short of historical. Over the past few months, however, we had been witnessing a huge beatback sector-wide, with pot plays steadily declining across the board.

You can see below from the random chart examples we’ve pulled, that similar action has been occuring in most every related stock. Familiar plays like HEMP, TRTC, and GRNH all exhibit strikingly similar paths. Steady, heavy losses followed by distinct signs of a turnaround.

Presumably the pickup we’re seeing as we head into the end into week’s end is due at least in part to campaign season kicking off for proponents of cannabis in places like Alaska, Florida, Oregon and Washington, D.C, who will all be voting on marijuana initiatives in some form or other on November 4th.

Other states are sure to be paying attention, especially those that are tight on cash. Colorado estimates that tax revenues from its first year of recreational sales stand at $60-70M. Meanwhile, Washington State’s measure roll-out of retail sales continues slowly, with only the second Seattle marijuana outlet scheduled to open up next Tuesday. In a study conducted by NerdWallet.com, the nationwide legalization of pot would produce over $3B annually.

So here we are, having waited patiently for the marijuana space to begin to heat up again, finally seeing the kind of rebound activity that can provide us with quick in-and-out gains. We’re going to want to watch anything even remotely tied to the industry as voting time draws even closer.

Extended Watchlist:
RPRX, CNET, NAVB, DRYS, GALE

Blue Horseshoe Stocks: LPCN Recap, LPDX & More

Lipocine, Inc. LPCN

LPCN served up an opportunity at some decent intraday gains after appearing on yesterday morning’s extended watchlist.

The stock played out a classic dip and rip scenario, falling to a morning low of 6.89 before surging back in the afternoon to a subsequent high of 8.42. That offered traders a chance at intraday gains of up to 22% on plenty of liquidity- the stock would trade 23.5X its 30-day average volume.

The productive session came on the heels of the company announcing favorable results from Phase-3 clinical testing of “LPCN 1021”, its oral treatment for low testosterone >>> VIEW PR

LipoScience, Inc. LPDX

LPDX is gapping up heavily in the premarket, and the interesting story behind it is one that we’re definitely going to want to give our close attention. Early this morning, the company announced that it was the subject of a buyout that would be executed at a share price of $5.25. Barely an hour later, another PR hit the LPDX newswire, concerning an investigation of the managerial board’s handling of the deal, and whether or not they have secured the best possible buyout price.

According to the investigative firm leading the case, “The $5.25 per share acquisition price is far less than where the stock has recently traded. In fact, on January 25, 2013, LipoScience stock opened for trading at $9.75 the day the Company sold 5.0 million shares of stock in its initial public stock offering.” >>> VIEW PR

The playing out of this scenario is going to be an interesting story moving forward, which is why we wanted to flag LPDX this morning, and fill everyone in on this morning’s happenings. The possibility that the investigation could lead to a potential restructuring of the buyout is enough to have us keep our ears to the tracks on this one for the foreseeable future.

Magnum Hunter Resources Corp. MHR

MHR is another morning gapper that we’re putting on our radars. This morning Magnum announced impressive throughput volumes on its “Eureka Hunter” gas gathering pipeline. According to the CEO, “increased capacity has resulted in a record day of approximately 316,500 MMBtu of natural gas”. >>> VIEW PR

Options Trading Idea: PBR Calls

We’re interested in the PBR October 31st $15.50 Calls last traded at 1.88. If we can see PBR make its way back to recent $20+ highs within a month, it could put us in position to see returns of up to 150-200% on those contracts.

Extended Watchlist:
RNN, MNKD, CNET, VHC, MPET