Blue Horseshoe Stocks: KGNX, HERO Recaps & More

KollagenX Corp. KGNX

We tagged KGNX in yesterday morning’s premarket report, and were met with a fantastic intraday gain opportunity from this subpenny runner that has brought us good chances to gain in the past. (We’d initially tagged it coming off of its 52-week lows in March)

Yesterday we observed a low of .00189 in the stock before it took off, running hard and reaching a high of .0037 shortly before 1PM. That marked an upswing of 96% on close to nine times the monthly average trading volume, and KGNX closed with enough strength (.003) to qualify it for further observation as a possible momentum play.


Hercules Offshore, Inc. HERO

Speaking of momentum, that was what led us to feature HERO in yesterday’s report. The stock had already strung together three consecutive sessions of building higher lows, and it continued that trend for us with a solid performance on the day.

HERO traded in a range from 1.52-1.99, a respectable rise of 31% and it did so on a little over three times the 3-month average volume. This morning we’re seeing a slight gap-up in HERO to a premarket high of 2.15, which extends our observed range to an overnight gain of 42% We’ll keep tracking this one for a potential continuation of momentum as well.


Fresh Options Idea 

Target Corp. TGT – Target is tumbling in the premarket this morning on disappointing sales and Q2 guidance, leading us to submit a bearish idea for the stock’s options chain. We’re going to put TGT Weekly $69-65 Puts on our short-term radars today. We’ll remain interested in these contracts


Extended Watchlist:
GTHP, TRKK, APA, ORMP, FCAU, FAC(Bottom watch)
CBYL(Gap to fill up to 2.25)

Blue Horseshoe Stocks: Earnings Calls, Bottom-Plays & More


Momo, Inc. MOMO

We began tracking MOMO on Friday after noticing the stock coming off of a bottom, and we’ve seen an appreciable move to the upside in the ensuing sessions.

The stock is gapping up this morning on a strong earnings report (>>View Highlights), reaching a high of 12.73 in the premarket. We caught MOMO at a low of 11.52 on Friday and have thus far seen an 11% increase, so we’ll want to leave it on the radar and watch for higher lows and higher highs.


NQ Mobile, Inc. NQ

Speaking of earnings plays, we’re going to be tracking NQ closely over the next couple of sessions. The stock has been trending off of a bottom for the past three sessions and this morning, we’re seeing the stock gap up considerably.

Things are likely to get interesting as the company is slated to release earnings post-market today, and a big PR hit wires just an hour ago.

Today’s News: NQ Mobile Inc. Enters into a Definitive Agreement for the FL Mobile Divestment (>>View PR)


Hercules Offshore, Inc. HERO

We’re also going to be monitoring HERO, which, like the aforementioned stock, has been establishing a solid move up off of recently-registered two-month lows.

As you can see on the included snapshot of the chart, HERO went on a massive run from the .70-range to more than 4.00 from February to April. Indicators are ripening for what could be the next big leg up after the recent consolidation, so we’ll be sure to keep an eye peeled for the possibility of a continued upsurge.


The Children’s Place, Inc. PLCE

PLCE is yet another bottom-bouncer with earnings that is gapping up in early trading. We’re going to signal a range of options contracts for observation to possibly take advantage of the momentum. Our target range is going to be the PLCE Weekly $70-75 Calls.


Chatroom Call:

Our daily live traders chats are a great way to get involved with what we do. Regular participant DJ spotted another big runner and shared with the room shortly after the opening bell. We saw it at .03 before it went on a monumental run to hit a high of .465 on news with TOMS Shoes. Gains of over 1500% were possible. Feel free to join our traders chats by sending a Skype request to user ‘stocksumo’.


Extended Watchlist:
AMMX, ONCI, KGNX, OREX, LIVE, KGJI

Blue Horseshoe Stocks: Several Updates, New Ideas & More

Linn Co. LNCO & Linn Energy LINE

We often include this related pair together and have mentioned them several times in past reports. Most recently was a week ago today, when we called attention to the fact that their [nearly identical] charts were trading at a relative bottom and looking ripe for a rebound. It didn’t take long for our expectations to come to fruition, with both stocks posting solid performances during yesterday’s session.

LNCO ran from .355-.515 for a move equaling 45%, while LINE did slightly better with a run from .32-.50, representing a  56% intraday upswing.


Rex Energy Corp. REXX

We took notice of the momentum that had built up in REXX yesterday, leading us to include a mention of it in our premarket report. We liked its chances of continuing the pattern it had established on the heels of a purchase agreement announcement, and that’s just what it did.

From a morning low of 1.03 we witnessed REXX run as high as 1.44 shortly after 1PM. That registers as an intraday pop of 40% We’ll continue to keep an eye on this play provided it can maintain support above a dollar on any pullbacks.

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Added Note: GEVO was another one from yesterday’s report to trade solidly in the morning and early afternoon. The stock made a relatively small 20% intraday move from .25-.30. It’s still hovering around that high early on today, so we’ll be leaving GEVO on our radars also, for the time being.


Oil-Related Plays

We also wanted to remind our readers of the plays we’ve been tracking recently that are tied to big oil:

VelocityShares 3x Long Crude Oil ETN – UWTI
Petroleo Brasiliero SA (Petrobras) PBR

Both have been putting up solid performances with oil having been on a bullish tear in recent sessions. It appears as if many oil stocks are gapping up in the premarket, so we’ll be interested to follow the resultant action in our own oil-related interests. In the case of Petrobras, we want to go ahead and signal a possible options idea: We’ll be looking at observing PBR Weekly $6 & $6.50 Calls over the remainder of the week.


Strikeforce Technologies, Inc. SFOR – Recap

We also want to take a second to comment on the early move made by another of our recent items of interest, SFOR. In the video chart we published, we mentioned needing to see it hold above a specific support level and it managed to do so for the first part of the session. The stock caught a bounce off of the .0026 level and ran 62% intraday to .0042.

That daily high represented an overall new high for us as well. We’ve now seen a total jump of 500% over our observed low of .0007 from the day of our initial alert on March 31st.


Extended Watchlist:
MDVN, GSS, SDOC, AGTK, TALK, KGNX(Bottom-bouncer)