Blue Horseshoe Stocks: More Bottom-Plays

Seres Therapeutics, Inc. MCRB 

It was a pretty slow start to the week yesterday with the markets gapping up early, but falling into decline throughout the session. That didn’t stop the one fresh idea we did have in our morning report from posting a respectable performance on the day.

We referred to MCRB as a ‘prime bottom play’ and while it didn’t exactly explode out of the gate, what we did see was certainly a step in the right direction. From a low of 2.63, the stock ran a modest but solid 16% to a high of 3.06. More importantly, it preserved its momentum by holding the three-dollar mark into the close. A good first day by any stretch of the imagination.

We’ll continue to monitor our longer term options idea that we included, the MCRB 07/19 $2.50 Calls which stand to do well in coming weeks if the stock can continue to maintain the current trend. Yesterday’s session was the fourth consecutive day that the stock has recorded higher lows, and we’ll want to see more of that moving forward.


Verastem Inc. VSTM 

Speaking of bottom plays, we’ve got another one to add to our radars this morning in VSTM. This stock has lost a ton of value over the past year, and recently began to show signs of a rebound. We like it for its technical setup and volatility potential. We will remain interested in tracking VSTM for as long as it can maintain support at 1.72 or better.

VSTM is considered by some to be a speculative buyout play as well. Just this week the company has reported positive early stage data on Copiktra, the company’s leukemia treatment under development. Definitely an interesting story to follow.

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Celestica Inc. CLS

Perhaps even more attractive as a bottom play than the above mentioned stock, we’ve got CLS, which just began to show signs of life after recording a new annual low at the beginning of this month.

If the stock can manage to break its 50DMA at 7.09, there’s a real chance that it could produce significant gains, filling the gap to the topside on the chart. Interesting to naote about CLS as well, is that the company’s EPS has grown by nearly 90% over the past year. When taking that into consideration, its current valuation doesn’t make a whole lot of sense.


Extended Watchlist:
CBAY, DERM, SAVA, NERV, NDRA, PHUN, VIVE

Blue Horseshoe Stocks: CPXX Buyout & More

Celator Pharmaceuticals, Inc. CPXX

Just under a couple of weeks ago, we chose to alert CPXX in our morning report from May 19th. The stock had been gaining significant ground in sessions prior to that, to the point we felt it warranted our attention.

It was a good thing we drew attention to it when we did, because what followed was a solid run-up from our observed low of 15.73 into the $18-range. This morning, our witnessed gains received yet another big boost, as a takeover has been announced that will see CPXX acquired by Jazz Pharmaceuticals for $1.5B, or, 30.25 a share.

As of this morning’s premarket high on CPXX, our observed PPS increase on the stock in a matter of just seven trading sessions has been extended to a very solid 95%


Lending Club Corp. LC

Speaking of extended gains from plays that we’ve been discussing recently, we also had LC put up a noteworthy performance on Friday that culminated in new highs for us since we began tracking the stock.

Just to refresh our readers’ memories, we called LC as a bottom-bounce candidate last Monday, at which time we observed a low of 4.19. Friday’s run carried it to a high of 5.10, marking an intraweek move of 22%

We’re going to want to continue to monitor its progress as the chart is still looking quite ripe for a continued uptrend. As you can see on the provided chart snapshot, we’ve got a steadily-strengthening RSI combined with a recent bullish MACD cross in addition to a significant gap on the chart that runs from the 5.50’s to the 6.70’s.


Cliffs Natural Resources, Inc. CLF

We’re also going to place a tag on CLF this morning. We like the recent activity and the look of the current chart. Like the aforementioned play, we’re faced with a number of bullish indicators that are urging us to keep CLF on our radars as we kick off a new trading week.


Extended Watchlist:
CATS, NHMD, SQI, GEVO, NERV, FRO

Blue Horseshoe Stocks: Reviewing Yesterday’s Winners

SITO Mobile Ltd.  SITO
We kicked off yesterday morning’s report by mentioning SITO, which cropped up on our scanner with some big news, and it turned out to be an excellent call. The stock touched a morning low of .1489 briefly, before running up as high as .197 around lunchtime. That accounted for an intraday jump of 32%

SITO ended the session with strength as well, maintaining the majority of its daily gains into the close at .187, and did so on roughly 4X the average monthly volume.

Remember, we caught this play on the heels of its recently established 52-week low, so our timing couldn’t have been much better. Any way you slice it we can chalk our initial play on the stock up as a win, but opportunities may yet remain. SITO was trading as high as .40 as recently as October, and regaining even a fraction of that level would spell significant gains from here, so it will certainly be on our radar moving forward.


Netflix, Inc. NFLX – Options Ideas

Some of the other top opportunities from yesterday’s report were the options ideas we offered up, all of which presented the chance at intraday gains as we suggested they might.

Starting with the NFLX $395 and $410 Calls; these contracts saw some intraday fluctuations which made significant gains a possibility.

The $395’s dipped to an initial low of 12.44 before running to 17.55 (+41%), followed by another pullback to the 13.65 level before rallying back as high as 20.05 (+47%), and in the last hour made one more dip-and-rip from 13.20 to 15.50 (+17%). That means those contracts registered an impressive 105% in cumulative gains on the day.

The $410’s bounced around just as dramatically with their own series of big swings; 5.20-9.05 (+74%),  5.40-7.70 (+42%) , 4.60-8.55 (+88%), and 3.80- 5.30 (+39%), collectively accounting for more than 240% in upward movement.

We also cited GPRO for possible chances in options calls, and there were indeed opportunities there as well. $48 and $49 Calls both made moves approaching the 200% mark, as the following snapshot shows. GPRO is gapping up today above $51 in the premarket, so we’ll look to see a possible extension of the gains we’ve already witnessed.


Side Note on American Leisure Holdings, Inc. AMLH:

We also want to make a note of AMLH. We caught it on our scanner after publishing our report Tuesday morning, however we did include it on the Stock Tracker on our blog on that day, and through to yesterday.

After gapping up on huge volume Tuesday, we observed a dip to the .17-.18 range. Since then it has made some nice gains, and closed with strength yesterday. It’s a little late to chase it now but we wanted to make mention of it to illustrate a point we always try to drive home to our readers.  Whether you consume our reports via email, through a third-party website, etc. It’s always a good idea to visit our blog at BlueHorsehoestocks.com frequently and check for updates to the tracker, which may or may not differ from those in our daily reports! New content is published to the blog each morning prior to the market open.


Extended Watchlist:
FXCM, SDRL, NERV, NADL, CLRX