Blue Horseshoe Stocks: Earnings Beats & Bottom-Plays

Bottom-Bouncer Watchlist

Each of the following stocks qualifies as a bottom-bouncer, a couple of which are just coming off freshly-set annual lows. They’ll be reserved a place on our radar as the week comes to a close:

Organovo Holdings, Inc. ONVO – In recent weeks this stock has been under consolidation, and yesterday it found a new 52-week low of 3.99 before rebounding into the close in the low 4.40’s. This morning ONVO is gapping up into the 4.60’s. We’ll have our eyes on this stock, likely over the next few sessions as it attempts to recover off of its annual low.

Neuralstem, Inc. CUR – Following some ill-received news on its ALS drug currently under study yesterday, CUR absolutely fell off a cliff. It’s gapping up in the premarket, so we’re anxious to follow it today. Stocks that get blasted on knee-jerk reaction to news can often see a rapid recovery, so our interest is high in this case.

Endeavor Silver Corp. EXK – This stock is also coming off of a new 52-week low that it recorded on Wednesday. It managed to make higher highs and higher lows during yesterday’s session, and we’ll look for it to continue that trend moving forward.


Earnings Beat Watchlist – Options Ideas

The next pair of companies each had an earnings beat, and are both gapping up over 10% in premarket action this morning. What we’ll do is monitor for dip-and-rip scenarios, and take advantage of In-the-money Calls on the rebound:

El Pollo Loco Holdings, Inc.  LOCO – For this one, we want to radar Weekly $25-26.50 Calls for possible day-trading opportunities.

Ulta Salon, Cosmetics & Fragrance, Inc. ULTA – Here we’ll be observing the action in Weekly $154-155.50 Calls


Extended Watchlist:
FXCM, SPPI, NSPH, WLT, NETE

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

Blue Horseshoe Stocks: EAPH, PMCM & More

Easton Pharmaceuticals, Inc. EAPH
EAPH fared very well on Thursday following our re-alert of the stock, providing us with the chance for solid gains before we broke for the long holiday weekend.  We mentioned that we liked the potential, especially if it could break its key resistance at .021.

In fact, EAPH broke through that resistance and kept on running, to a high of .031 before all was said and done. From the day’s low of .0197, that marked an intraday move good for up to 57% in quick-strike profits for nimble traders.

Take a look at the following video for chart commentary on EAPH:

Moving forward, we’ll want to see EAPH hold support at or above .021 in order to keep us interested.


Primco Management, Inc. PMCM

PMCM is another of last week’s alerts to perform well for us during Thursday’s half-session. We brought readers an update on this repeat pick on Tuesday, at which time the stock was trading at a low of .0021.

The stock made higher lows for the remainder of the short week, and touched .0031 on high volume on Thursday, which marked an intraweek move of 46%

As we begin another week, we’d like to see PMCM hold support above the 50DMA of .0021. The next key areas of resistance to watch for a break will be .0037 and .0045.

PMCM, like EAPH, is a cannabis-related play, and as we’ve been consistently reminding our readers, the sector could very well be in for a boost on the heels of the beginning of legal sales in Washington State, and already we’ve begun to see quite a bit of evidence to support that theory. By the end of the week an expected 20 or so shops will have received their recreational marijuana licenses and begun selling the plant.


Extended Watchlist:
CAMT, EVRY, SPPI, RVLT, APP, IGC