Blue Horseshoe Stocks: Kicking Off the Short Week

INSYS Therapeutics, Inc. INSY

This morning we kick off the holiday shortened week, during a time of year that typically sees subdued activity for the markets as a whole, as people spend time with their families, and stay busy with holiday festivities.

We still strive to identify possible opportunities even in this environment, and the first thing to hit our scanner this morning was INSY. INSYS Therapeutics recently initiated Phase II trials of its synthetic Cannabidiol (CBD) Oral Solution for Treatment of Refractory Childhood Absence Epilepsy.

The FDA, we’re learning today, has also granted Fast Track status to INSY for the ‘drug’ for the treatment of Prader-Willi syndrome, a rare and complex genetic disorder. (View PR)

The stock registered its 52-week lows at the beginning of last month, and has been in a general uptrend since, but we’ll be looking for further bullish activity on the heels of this FDA news, both on the stock chart, and in the options chain as a secondary idea. For that, we’ll look to the INSY 01/19 $8 & $9 Calls for opportunities.

DelMar Pharmaceuticals, Inc. DMPI

Speaking of FDA Fast Track designations, we’re looking to DMPI this morning as well, which was granted the status by the FDA for its lead-product cancer treatment, VAL-083.

The chart itself was already set up as a possible bottom play, and despite gapping up considerably on this morning’s news, there is still room to the upside, including a sizable gap that’s been left on the chart since this past spring, the eventual filling of which would spell gains of more than 100% from the current PPS.

Extended Watchlist:

Blue Horseshoe Stocks: ICLD, XGTI Recaps & More

InterCloud Systems, Inc. ICLD

ICLD stood out as a solid mover from yesterday’s premarket report. From a morning low of 3.01, the stock made an authoritative move on up to a high of 4.30 just prior to the closing bell.  That represents an increase of 43% on heavy volume to the tune of nearly 38X the three-month average. That figure has been extended to 46%  in the premarket today with the stock touching a high of 4.40 so far.

We’ll want to monitor ICLD for a sustained run; if it can manage higher highs and higher lows today, it would mark the third straight session. The boost it received yesterday was due, in part, to the announcement of a new product launch, the link to which we’ve included below.

InterCloud Systems Announces the Launching of NFVGrid, a Network Functions Virtualization Orchestration Platform (Mon, May 4)

xG Technology, Inc. XGTI

XGTI was another stock from yesterday’s report that made a significant move on the day. It saw a an early low of .40, and would go on to run toward the end of the session, hitting a high of .5474. That worked out to an intraday move of 37%

The stock managed to hold .54 into the close, and the performance came on volume exceeding the monthly average by more than 6X. Anytime we observe action of this kind, we want to be on the lookout for continued activity in subsequent sessions. Already in early trading today we’re seeing the beginnings of a dip-and-rip pattern. We’ll keep our eyes peeled for added chances to take advantage of this play.

OSL Holdings, Inc. OSLH

We tracked OSLH throughout the month of April, and we’re highly rewarded for our vigilance. Between April 2nd (Low: .0021) and April 15th (High: .0274) we witnessed an amazing 1294% run.

Toward the end of last week, OSLH found a bottom after pulling back off of that historic move, and began to rebound from the .0075-mark, and has definitely won back our attention. Yesterday’s session carried OSLH as high as .0144, a 92% swing. We’ll watch this play for the possibility of a protracted rebound off of Friday’s low.

PlasmaTech Biopharmaceuticals, Inc. PTBI

We pulled up PTBI on a routine scan today, and it’s a stock that has been invested in by activist investor George Soros, as we’ve learned in the PR out this morning.. Occasionally, we like to watch stocks that are in the portfolios of high-profile investors. Just last month we followed VLTC over a huge run that was fueled by the involvement of Carl Icahn.

The stock is already up significantly in early trading, and there’s a chance we could see a major gap on the chart up to the 5.50 area filled, so we’ll have this one on our radar for just such an event. We’ve pointed this out below; if PTBI can gain support at or above the 4.40-mark, we like its chances of making a nice run.

Extended Watchlist:

Blue Horseshoe Stocks: APP, CERS Recaps & More

American Apparel Inc. APP

It appears as if we brought APP back into the discussion yesterday at an opportune time, as the stock enjoyed a healthy intraday move on more than twice the 3-month average trading volume.

After briefly seeing a low of .63 the stock gradually built its way up to an afternoon high of .69, an increase of roughly 10%, and in the premarket this morning APP has already traded as high as .78. That pushes the overnight increase on APP to 24%

Yesterday we mentioned that breaking of the 200DMA of .74 was a key event that needed to take place and we’ve seen that happen this morning, so APP is certainly going to remain high on our watchlists as we head into week’s end.

Cerus Corp. CERS

CERS was included in yesterday’s extended watchlist, and made a solid move during the day’s session. From a low of 5.26 the stock made a run at a high of 5.94, a modest yet notable 13% increase.

It came on the heels of the announcement that the company had received the green light from the FDA on its product that limits the risk of infection-transmission in blood transfusions. We always like a good FDA-approval play so we will definitely be monitoring this play in coming sessions.

CONCORD, Calif.–(BUSINESS WIRE)–Cerus Corporation (CERS) today announced that the U.S. Food and Drug Administration (FDA) has approved the INTERCEPT Blood System for plasma. The INTERCEPT plasma system is approved for ex vivo preparation of plasma in order to reduce the risk of transfusion-transmitted infection (TTI) when treating patients requiring therapeutic plasma transfusion. >> FULL PR

Eco Science Solutions, Inc. ESSI

We’ve still got ESSI on our radars, and wanted to remind our readers of this even as the stock has been trading in a tight channel between .20-.25 since we last took a look at it. The reason we still find ESSI attractive is that it boasts a tight share structure, and while we haven’t seen much in the way of volume, should that change, even the slightest amount of buying pressure could send ESSI flying.

From a business perspective, we’re also interested in the technology the company is working on, its innovative re-imagining on classic spark plug design. So despite not seeing much short-term activity, ESSI still has many of the hallmarks of a high-potential play that we’ll want to watch closely into the New Year.

We’ve drawn up a video on the current standing of the ESSI Chart, so take a look at that by clicking the graphic below:

If you missed our initial report on ESSI and its spark plug technology, go ahead and take a look now: ESSI Report

Extended Watchlist:

Blue Horseshoe Stocks: AEZS Recap & More

AEterna Zentaris, Inc. AEZS

We called AEZS in yesterday morning’s newsletter as a potential bottom play to kick off the week, and our timing really couldn’t have been much better. After opening at .55, it would run to as much as .65; a solid intraday increase totaling 18%

Any time we can make a quick profit off of a stock coming off of its all-time lows we consider it a big success, and will continue to monitor this stock for further opportunities it may present with any continuing rebound action.

The turnaround came in conjunction with a PR notice that AEterna had signed a license and technology transfer agreement pertaining to the company’s “doxorubicin” anti-cancer compound with Sinopharm A-Think Pharmaceuticals, a division of China’s largest pharmaceutical company.  >> Read PR

Energy XXI (EXXI) - Bottom Watch

Speaking of stocks trading at landmark low points, as an apparent result of the continued slide in oil prices in addition to a recent financial update that was poorly-received, EXXI has come down to find new 52-week lows.

We’re going to put this stock on bottom-watch, while noting that further losses for crude could actually cause it to continue pushing its lower boundary. That certainly seems to be the opinion of some analysts, but as ever, where others see lost ground, we see opportunity on the horizon.

Either way it shakes out, we could see a substantial recovery of the EXXI chart once oil prices begin to rebound, so we’ll tag it for our ongoing watchlist and monitor the situation moving forward.