Blue Horseshoe Stocks: MCPI, PBR & More

Med-Cannabis Pharma, Inc. MCPI

Exactly one week after we first brought it to our reports, MCPI continued to impress during yesterday’s session. The stock made an intraday move of 35% from .65-.88, and did so on nearly three times the 3-month average volume.

Calculating from our initially-observed low, the 88-cent high represented a one week overall increase of 148%, so congrats to any readers who were able to take a piece of the action.

This is going to be a play we’ll continue to track; per the timetable released in the Aug 4th PR regarding the opening of three retail marijuana stores in Washington, we should be receiving another update sometime in the next couple of weeks.


Petroleo Brasiliero S.A. (Petrobras) PBR

It’s beginning to seem as if we can peer through a crystal ball into PBR’s future with the way it seems to obey our predictions of late. Our subscribers will recall yesterday’s report  wherein we mentioned our intent to monitor the $16 Weekly Calls for the second consecutive week, and that we’d be “on the lookout for a substantial move” provided the stock could once again surpass the $16-level.

As it has so many times in recent weeks, PBR behaved exactly as we’d hoped it would, smashing through $16, and eventually reaching as high as 16.48. As a result, our contracts made a solid move from .35-.62, an intraday spike equaling 77%

Following the same strategy from last week’s successful play on the $16 Weeklies, when the stock continued to run past the 16.30’s, those who had moved their strike price and rolled into the $16.50 Calls could also have collected a nice profit, with those contracts trading in a range from .12-.32 (+166%).


Elray Resources, Inc. ELRA

ELRA appeared in yesterday’s extended watchlist after we caught it off of a routine scan toward the end of last week. The stock offered up a nice dip-and-rip scenario yesterday. After trading as low as .0072, we saw a subsequent high of .0134, for total possible intraday gains of up to 86%


Extended Watchlist:
FRF, SUPN, SAND, ARTX, CNAT

Blue Horseshoe Stocks: MCPI, DRL Updates & More

Med-Cannabis Pharma, Inc. MCPI

To start things off this week, we’d like to congratulate any members that followed our coverage of MCPI last week to their benefit. We tracked this play as it ran from .355-.55 (+55%) between Monday-Wednesday.

On Thursday, the stock had consolidated back down to a low of .3776, and we mentioned that we were on the lookout for follow-up from the initial spike to provide us with a dip-and-rip opportunity, and that’s precisely what occurred. As we headed into the end of the week, the stock made another push that would exceed the first, and we actually observed a new high of .64 into the close.

The second spike of the week offered up by MCPI amounted to possible gains of up to 69% while Friday’s new high marked an overall increase of 80% from the low we observed on Monday.

Cheers to anyone who was able to take advantage of our timely coverage on this Washington State marijuana play.


Doral Financial Corp. DRL

We tagged DRL for the first time back on July 23rd, and since that time, have seen this stock trading as low as 5.20. This play caught our interest mainly because of the lawsuit they’ve claimed against the Puerto Rican Government.

As a result of a tax discrepancy, it has been alleged that the treasury owes DRL as much as $229M. This morning, the stock is flying high in the premarket on word that hearings for the suit have been suspended until next Monday, so that a settlement between the two parties may be reached.

This could further speed up the process, even after the proceedings were recently ordered expedited by the Puerto Rican Supreme Court. While it is not likely to be the full sum, a settlement could mean a significant portion of that figure going onto DRL books straightaway.

We’ll keep our eyes glued to this one, as we’ve already seen the PPS rise from 5.20 to this morning’s premarket high of 7.20, a respectable 39% increase over the course of roughly seven sessions.  The announcement of the completion of the settlement agreement, if and when it arrives, could catalyze even further gains.


Side Notes:

We also want to throw LKA Gold, Inc. LKAI into the mix today, a new gold play with a long history of producing mines.

Also, we’ll still be monitoring the PBR Options Calls. We played them like a fiddle last week, and will continue to utilize the action to our benefit. If the stock can get back above $16, we’ll be on the lookout for a substantial move out of the $16 Weekly Calls.


Extended Watchlist:
ELRA, IDST, MNKD, PIP, HGSH

Blue Horseshoe Stocks: RSH Coming Off 52-Week Lows

Radio Shack Corp. RSH

The last time RSH appeared in one of our reports was back in mid-May, and we’ve passively monitored the stock’s gradual consolidation over the few months since. On Tuesday, it registered an annual low of .55, and in each of the proceeding sessions, has maintained higher lows as the stock hints at a rebound.

Where a week ago we were looking at a steadily declining chart, we now appear to have one with several indicators turning in a favorable direction, and the price action is responding in kind.

What we want to see now, is a break of the 20DMA of .74 to really confirm that the stock is in recovery mode. We always like running across stocks coming off their 52-week lows, so we’re going to be monitoring the stock more heavily in coming sessions. The included snapshot below illustrates the indications of a ripening chart:


Med-Cannabis Pharma, Inc. MCPI

MCPI began to pull back yesterday after providing us with a good opportunity for gains this week. When all was said and done, we saw an overall increase of 55% from .355-.55, which is quite a respectable move.

In instances such as these, when profit-taking from a rapid move up creates a dip, we like to wait in the wings observing for a low point where we might collect cheap shares to ride into the next upswing.

We also want to keep an eye out for further updates on the three retail marijuana stores the company is setting up in the towns of Port Townsend, Port Hadlock, and Hood Canal, Washington.


Extended Watchlist:
JCP, MHR, VGL, DEJ, SPPI