ABAT, SOCR, ICLD, FREE & Extended Watchlist

Over the 2+ years since we turned our long-running daily newsletter into the Blue Horseshoe Stocks blog, we have covered an extremely wide pool of stocks. In fact, the number of plays we’ve passed along since the site’s inception is now approaching 1000.(Click here to view the symbol index.) We also have a couple of new plays to add this morning:

Advanced Battery Technologies, Inc. ABAT

ABAT has been on a full-fledged breakout for the past four sessions, and momentum has been building. With volume increasing, and a golden cross setting up on the chart, this is definitely a stock that will be drawing our attention this morning.

Following this monstrous run, in the weeks ahead, we’ll also be on the lookout for a pullback and any eventual bounce opportunities it could afford.

Solpower Corp. SOCR

SOCR seemed to awake from hibernation yesterday as it traded up on light volume, causing it to pop up on our unusual activity scanner.  We’re going to want to keep this one on our radar moving forward.

FreeSeas, Inc. FREE

After re-alerting FREE as it was coming off of a bottom, the stock continued its progress, opening up at .36 and trading as high as .4048 on greater-than average volume. That marks an intraday gain of roughly 12.5%

As is the case with all stocks on the rebound, we are looking to see higher highs and higher lows posted on the chart.

Just prior to this stock’s last major run, we called out resistance in the .33-.38 area, the breaking of which led to serious gains. Those levels have been breached again, so FREE now has us back on high alert.

InterCloud Systems, Inc. ICLD

After having been as low as 4.41 following our initial alert of  ICLD on Friday morning, and as low as 8.67 following our Friday afternoon update, the stock continued to roll on Monday.  We saw a high of 16.69, which could have provided gains of up to 278% for those that caught the first alert, 93% following the second.

Congrats to anyone who has been able to ride the waves of gains that ICLD has provided over just a few short days.

Extended Watchlist:

DCTH, ZLCS & Extended Watchlist

Delcath Systems, Inc.  DCTH
Following its inclusion in yesterday morning’s extended watchlist, DCTH would go on to have a massively successful day of trading. The stock, after briefly touching a bottom at the .402-mark, went on an absolute tear as it reached a high .66 around lunchtime.

A single-session gain of 64% on the first day we placed DCTH on our watchlist is certainly nothing to sneeze at, and given the circumstances behind the upward surge, that may have only been the beginning.

The company received word from the FDA that its Primary Liver Disease treatment, ChemoSat, had received “orphan drug” designation, a classification which denotes a drug or procedure that is aimed at a disease which affects less than 200,000 people. About 26,000 Americans are diagnosed with Primary Liver Disease each year.

(Thomson Reuters ONE via COMTEX) — New York, NY – October 1, 2013 – Delcath Systems, Inc. (NASDAQ: DCTH), a specialty pharmaceutical and medical device company focused on oncology, announced today that the U.S. Food & Drug Administration (FDA) has granted the Company orphan drug designation for melphalan in the treatment of patients with hepatocellular carcinoma (HCC, or primary liver cancer). >>>FULL STORY

Side Note:
We rarely see stocks in this price range with an active options chain, but DCTH is an exception. The 12/21 .50 Calls jump out at us at first glance. If the stock were to approach a dollar between now and the expiration date, one could be looking at triple-digit gains.

Zalicus, Inc. ZLCS

Coincidentally, ZLCS, a stock that we’ve been following since the beginning of last month, also received a recent FDA orphan drug designation for its experimental Z160 drug, intended for the treatment of pain related to the Shingles.

Hitting a high of 1.38 yesterday, we finally saw ZLCS fill the gap on the chart that we had been pointing out for some time. Since we’ve been following ZLCS, we’ve seen a low of .78, and yesterday’s high represents a 77% gain off of that bottom. The filling of that gap was a pretty good indicator that it was time to take profits off of the table, so we certainly hope that folks were able to take advantage.

This morning, they also announced a reverse split, the result of which should be the stocks continued listing on the Nasdaq Capital Market, as it should enable shares to remain above the 1.00 minimum bid price required for listing. We would expect shares to come away from this split valued in the $6.00-range, and sure enough, we are seeing trades go off as high as 6.45 pre-market.

Zalicus Inc. (Nasdaq Capital Market: ZLCS) today announced that it has filed a Certificate of Amendment to its Sixth Amended and Restated Certificate of Incorporation, with the Secretary of State of the State of Delaware to effect a 1-for-6 reverse stock split of Zalicus common stock, effective as of October 3, 2013 at 12:01 a.m. Eastern Time…The reverse stock split will reduce the number of shares of common stock issued and outstanding from approximately 147.5 million to approximately 24.6 million. >>> FULL STORY

Extended Watchlist:


Blue Horseshoe Stocks: FB & AAPL Options, INO, NOK, ZQK

Facebook FB OptionsThe FB 09/13 $41 Calls first appeared in our reports on September 4th, as we stated: “…if FB can breakout to $45 by next Friday, we could be looking at multi-bag gains from these contracts.” While we fell just shy of our target by .39 at Friday’s high of 44.61, the price action on those calls was still enough to provide us with those multi-bag gains with a whole trading week still remaining until expiration! So far, from their low following our 09/04 alert at 1.29, we saw a subsequent push to 3.80, good for a gain of 251% over a period of just a couple of days.

We’re going to remain bullish on these $41 Calls as we head into Friday’s expiration, as we think the chances are fair that FB as a whole remains on a general uptrend. It could lead us to move up on our strike price and contract duration as well. The 09/21 $45 Calls closed at .82 on Friday, and if Facebook does continue its upward momentum, those are likely to be the next contracts that will catch our interest.

Apple (AAPL) Options

There has been much speculation surrounding the possible focus of Apple’s big event tomorrow, which is widely believed to be an unveiling of the new iPhone 5S, although there have been no confirmations. Whenever a situation like this comes along, we always try to stay ready to advantage wherever possible. The public’s reaction to tomorrow’s event will determine our reaction in playing the Apple options chain. A successful reception and subsequent rise in PPS would obviously draw our attention to the Calls, while a disappointing result would force us to look at the Puts.

Inovio Pharmaceuticals, Inc. INO

We’ve been hot on the trail of INO since the beginning of July, when the stock was trading below a dollar (.7953 at its low). Within a month of that, by early August the stock had hit 3.03, which represented a move of 281%

We reminded everyone on August 23rd that we were observing higher highs and higher lows after the subsequent consolidation ( to a low of 1.60). Then on Friday, sent another reminder that INO was beginning to bounce back. We then saw a run back to 2.45, which marked a gain of 53%

This morning, the stock hit a high of 2.85 in pre-market trading, and trades are currently going off in the low 2.70’s.

Nokia Corp. NOK

Another stock that has done extremely well for us over an extended period is Nokia (NOK), especially recently, as its shares price ballooned on news that Microsoft had acquired its devices division as well as licensing rights to several of its patents. We’ve been following this stock for over a year now, and in that time we’ve seen a low of 1.91 run all the way up to recent highs in the high 5.50’s, a move of over 190%

Quiksilver, Inc. ZQKZQK appeared in Friday’s extended watchlist following release of an earnings report. After establishing a low at 5.99, the stock ran as high as  7.09, granting us the chance at an 18% intraday gain.

Extended Watchlist: