Blue Horseshoe Stocks: FB, TWTR, POWR, ONVO & More

Facebook, Inc.  FB
& Twitter, Inc. TWTR

After we included FB and TWTR in our extended watchlist yesterday, the two social media giants both made positive moves on the day. The uptrends made trading in the options chains of each of these plays a lucrative venture for the session.

For example, looking at some of the options contracts that were relatively close to the money, FB $66 calls went from .48-1.64, and $67 Calls were as low as .21 and closed at .86. TWTR $39 Calls were also moving, trading in a range from  .24 to .90. No matter what big-board stock you’re looking at options in, the heaviest action will usually be close to the money (i.e. Current market price as it relates to the “strike-price” of a given contract)


PowerSecure International, Inc. POWR

POWR was a feature in yesterday’s report, wherein we tagged the stock for its potential to fill in a huge gap on its chart that goes all the way to the $18-range. We began to see the gap beginning to fill as POWR would make a modest intraday run to a high of 9.79.

We’re going to leave this play on our watchlist as we head into the week’s end and beyond, as it still has much ground to recover. A return to pre-gap levels on the chart would still equate to gains in excess of 100% from here, and there isn’t a whole lot in the way of obvious resistance until we hit the 50DMA (12.27).

On the options side of things, we’re particularly interested in the August $10 Calls (Closed at .75 yesterday), because if POWR can test that 50DMA by 08/16, we could be looking at triple-bag gains from those contracts.


Organovo Holdings, Inc. ONVO

We placed ONVO on watch in Tuesday’s report, as we noticed that unlike some of the other players in the 3D printing industry, it had yet to show a significant uptrend on the chart, and we thought it might be due to make a move.

It appears that alert was quite timely, as the stock is beginning to rear its head,  gapping up today to the tune of 13% in premarket trading. Key resistance at the 200DMA (8.07) has been broken, and if we can hold above that mark, the next areas of resistance crop up at 8.65, and 9.35.


Comments on Today’s GoPro IPO

A large portion of the buzz on the Street today is emanating from the highly-anticipated GoPro Initial Price Offering, and we’re going to take the same stance we always take in these situations.

Our M/O when a big IPO comes out has always been to wait in the wings until we can gauge the price action. Once we get a good feel for the nature of the beast, it’s then that we’ll step in and utilize the trends to our best advantage in the options chain. This strategy served us well on both the FB and TWTR IPO’s, so we’ll continue to use it here.


Extended Watchlist:
AA, ROYL, DRWI, AGEN, UNXL

Blue Horseshoe Stocks: NSPH, DLIA, POWR

Nanosphere, Inc.  NSPH

NSPH is the first of a few new plays that we pulled off of our scanner this morning. The stock made a big move on Monday after it was learned that Nanoshpere had landed a substantial contract. Yesterday the company received FDA clearance on one of its products (Verigene(R) Enteric Pathogens Test), but could not maintain a steady run as a result of an overall dip in the markets.

The stock is, however, gapping up again this morning. We may want to keep an eye peeled for this play, as it is still trading near a relative bottom at its current price range; the stock was trading at 2.50 and above as recently as March.


dELIA*s, Inc. DLIA

Next up, we have DLIA, which popped up on our scanner as something of a momentum play. The stock is coming off of a recent bottom, and has been exhibiting the signs of a bullish run. A quick review of the chart shows that DLIA has made higher lows and higher highs for the last three consecutive trading sessions, and continued to build up a head of steam yesterday, pushing through its 50DMA.

We’re seeing a sizable gap-up this morning as well, and as you can see the chart still looks extremely bullish. We have an RSI which looks like its just about to punch into the power zone, and a MACD which recently underwent a bullish cross. If DLIA can now manage to break through the 200DMA (.98), it appears to have a pretty clear path on up to the 1.25-1.35 range.


PowerSecure International, Inc. POWR

Last but not least we have POWR, which is another morning gapper. The stock fell off a cliff on worse-than-expected earnings back in early May. We are now seeing some of that gap being filled, and want to keep a close watch over this play for the remainder of the week at the very least.

The gap on the chart goes all the way up to more than $18, so a return to previous levels would spell gains of more than 100% Even if the stock can manage to get back above its 50DMA (Currently 12.49), it would yield profits in excess of 40% over present prices.

Today the company announced it had successfully modified the service arrangement with one of its major utility customers to improve the terms of its ongoing service as outlined in the PR below.

WAKE FOREST, N.C., June 25, 2014 /PRNewswire/ — PowerSecure International, Inc. (POWR) today announced that it has successfully modified the service arrangement with one of its major utility customers to improve the terms of its ongoing service.  The modifications include adjustments to pricing, work assignments, and expected improvements in the ongoing scope of work. >> FULL PR



Extended Watchlist:

AERI, AMPE, BGMD, SYN, FB, TWTR

OXBT, MCHX, TWTR & Extended Watchlist

Oxygen Biotherapeutics, Inc. OXBT

OXBT followed our expectations to the letter yesterday. We were heralding the stock for its stellar 560% gain, then mentioned that we would be “on alert for any possible pullbacks, because those will often lead to excellent bounce opportunities.” The monstrous run that had begun a few days prior found its apex, giving way to a significant consolidation. After opening at 9.73, OXBT went as high as 11.40, that’s 17% intraday, and from our original alert low of 1.46 (10/29), a tremendous 681%

Upon the anticipated pullback we saw the stock fall to 6.81, bounce, close at 7.70, and this morning pre-market trades have been going off above the 8.00-mark. Moving forward we’d like to see the stock hold support above yesterday’s low, and continue to make higher lows.

This whole thrill ride was catalyzed when OXBT’s partner Phyxius Pharma announced testing results on its heart medication, ‘Levosimendan’, which showed effectiveness in reducing mortality rates among patients undergoing surgical procedures with reduced cardiac function.Tests at the Duke School of Medicine showed it could potentially reduce unwanted outcomes from open heart surgery by as much as 50%. OXBT has a standing agreement to acquire Phyxius, and by extension, the rights to Levosimendan. This is a story we will continue to follow through to its conclusion.


Marchex, Inc. MCHX

MCHX appeared in yesterday’s extended watchlist and made a nice move, trading in a range from 8.17 to 10.00. That represents a 22% gain, and the stock did manage to close out the session maintaining much of that increase at 9.91.


The Twitter IPO – TWTR

As many of you undoubtedly know, on Wednesday, Twitter priced its shares at $26, and will begin trading on the NYSE today under the symbol TWTR. As we did with Facebook, we are using caution early on, as the conditions seem set to create a “perfect storm” of volatility out of the gate. Demand from the outset is expected to be very high, which would create buying pressure and likely cause a significant increase as the first shares begin trading hands. Some experts believe as much as a 30% initial spike could occur, which we believe would lead a sizable number of investors to take those quick profits off of the table right away. That wave of selling pressure could kick up the volatility, causing some major swings in share price.

On the other hand, if demand for the stock has been underestimated, we could be looking at a maiden run that spans multiple sessions. This is why, and the Facebook IPO certainly provided a good lesson to that effect, we are approaching TWTR with a healthy skepticism. No matter how it all plays out, it will be very interesting to watch. You can be sure we will continue to comment as the situation unfolds.


Extended Watchlist:
GSS, JCP, OXGN, LPSN, NURO, GERN, AGEN(Coming off of recent lows)