Blue Horseshoe Stocks: Friday Recap, DRL & More

Reviewing Friday’s Top Picks

iBio, Inc. IBIO

The number one mover from our Friday morning report was undoubtedly IBIO. Our recent observation that increasing concerns over the presence of the Ebola virus on American soil would drive related stocks paid off in spades.

IBIO was among those to get a huge boost on unconfirmed reports that it would aid in government efforts to speed production of the ZMapp experimental Ebola treatment.

The stock would see a low of .89 near the beginning of the session, and ended up running extremely hard into the close, reaching a high of 1.57. That equals out to an intraday surge of 76% but our total possible gains didn’t stop there. The stock continues to roll this morning, having hit a high of 2.76 in the premarket and pushing the total amount of the increase we’ve seen on IBIO since Friday morning to an impressive 210%

Alpha Pro Tech Ltd. APT

Like IBIO, APT was also affected by Ebola fears on Friday, and traded in a less extreme but similar pattern. After seeing a morning low of 5.72, the stock pushed the envelope into the close, reaching a peak of 7.43 for a 30% intraday gain. It is also gapping up bigtime today, with a premarket high of 9.25, which marks a 62% move up from Friday morning’s low.

Doral Financial Corp. DRL

Some of our more seasoned subscribers will certainly remember our coverage of DRL this year. We were waiting to get word on the company’s tax suit against the Puerto Rican governement, and Friday following market close, it was announced that the court has ruled in favor of Doral, which will be due the disputed-over sum of $229M.

As a result of this untraded-upon news, the stock is gapping up like crazy today, to the tune of a 9.46 premarket high, up well over 100% above the low we observed following our initial alert on DRL this summer.

We’ll probably see some selling pressure from profit taking in a situation like this, so we’ll be on the lookout for a potential dip-and-rip scenario to kick off the week.

Extended Watchlist:

Blue Horseshoe Stocks: SCOK Update & more

SinoCoking Coal & Coke Chemical Industries, Inc. SCOK

SCOK was a huge standout call from yesterday’s newsletter. The play came off of our extended watchlist and it was pretty apparent right from the get-go that we had a breakout runner on our hands.

After trading for a little as 3.35 at the open, the stock quickly shot skyward, bulling its way up to an astonishing afternoon high of 9.37. That was an incredible intraday pop totaling 180% on volume exceeding the monthly average by more than 151X (an all-time record!) so cheers go out to anyone who caught this monster mover with us!

The major chart development came concurrently with an announcement by the company regarding an upcoming coal-to-gas conversion project in China which is “expected to be completed in February 2015 and yield syngas output of 60,000 cubic meters per hour, which the company says will equate to $30 million-$45 million in added gross profit by 2015.” >>>READ PR

It’s important to temper enthusiasm after a huge news-fueled run like this, and to keep in mind that even after yesterday’s huge pop, the company does still only have a market cap of roughly $170M, so a course correction would not be a surprise from this point. For anyone who isn’t already in on the action, a safe route would be to wait for a pullback and subsequent bounce.

Alkame Holdings, Inc. ALKM

We sincerely hope some of our readers were able to capitalize on our flag of ALKM in yesterday’s report. We radared this play after it was yielded up by a routine morning scan showing significant trading action, and it was a good thing we did.

ALKM started out trading at .157 in the early morning, and began to steadily uptrend. Around lunchtime, things really began to kick into high gear, as the stock would go on to reach a high of .27. That marked an intraday increase of 72%

The volume in ALKM was rather significant as well, to the tune of just over 38X its 3-month average, and the stock held a vast majority of its gains into the close, however we would still urge readers to use extreme caution in dealing with this stock beyond this point. We’ve identified it as the latest pick from the notorious group of promoters formerly known Awesome Penny Stocks, who says that they “expect to receive” a whopping $4.6M for the promotion of ALKM by a group calling themselves “LaLuna Services, Inc.”

If the group’s past exploits are any indicator, the stock is likely to fall flat after its rapid upward surge, and runs a real risk of being halted by the SEC (like their next most recent play, PGFY). For that reason, we would categorize ALKM as extremely high-risk moving forward, but with large funding of that nature behind the promotion, a continuation of momentum into today does remain a possibility.

Regardless of what happens from here, we’ll chalk up our happenstance inclusion of ALKM in yesterday’s email as a big win!

Extended Watchlist:

Blue Horseshoe Stocks: DGLY, GOGO, JRJC & Extended Watchlist

Digital Ally, Inc. DGLY

DGLY came off of yesterday’s extended watchlist to perform admirably. The stock has been trading quite actively after some recent news that the company had been receiving inquiries from law enforcement agencies about its FirstVU HD Officer-Worn Video System, following recent events in Ferguson, Missouri. DGLY’s system seems like it would be a great way to achieve maximum accountability for street-level police officers.

We saw DGLY trading at 5.75 yesterday morning, and it would go on to hit 8.00 on more than 7x its monthly average volume, so cheers to anyone who was able to take advantage of that 39% intraday move.

China Finance Online Companies, Inc. JRJC

JRJC was another play off of yesterday’s extended watchlist to have a pretty good session. The stock came out of the gate trading at a low of 9.26 and gradually pushed its way up to a high of 11.88 over the course of the morning and into the early afternoon. That was good for possible gains of up to 28% on over 10x its 1-month average volume.

Gogo, Inc. GOGO

GOGO is a stock we were mentioning back in the spring, which made a small move, but then went into a months-long consolidation that culminated in recent lows in the $14-range.

After posting higher highs and higher lows over the past six sessions, GOGO cracked its 50DMA yesterday, so we thought it’d be good to watch this stock more intently as it trends off of its bottom.

While there’s nothing certain about it, we’ve heard some buyout rumors floating around about GOGO, which adds an extra element of interest to this play.

Extended Watchlist: