February 2012 - Page 2 of 6 - Blue Horseshoe Stocks

BIOF, PEIX & Today’s Extended Watchlist

BioFuel Energy Corp. BIOF

Pacific Ethanol, Inc. PEIX

Although these companies are not linked, because of sharing a common sector (alternative fuels), it appears as if they are subject to many of the same trends and outside influences.

BIOF was first added to our radar back in mid-November. We caught it in the middle of a run, and watched it break out from .80-1.25, making overnight gains of more than 50%

We added PEIX on the same day as BIOF, due to a similar surge in buying. The stock saw a subsequent run from 1.01-1.85 (83%)

Both of these stocks have seen a pickup in buying much like we saw in November, and with many analysts calling for gas prices to continue to rise to $4.00 and beyond, we want to keep a close watch over alternative energy plays.
–

BIOF News:
DENVER, Feb. 22, 2012 /PRNewswire/ — BIOFUEL ENERGY CORP. (NASDAQ: BIOF – News) announced today that it will be releasing its fourth quarter and year-end 2011 earnings on Thursday, March 1, 2012, after the market closes.

The Company plans to host a conference call on Friday, March 2, 2012, beginning at 11:00 a.m. (EST) to discuss the results. To participate, please dial (800) 944-8766. The participant code for the call is 84358. This call will be available for phone playback for 30 days by dialing (866) 281-6782. The access code for the replay is 167702.

–

A look at the charts on these plays reveals almost identical situations, and more reason for mentioning these two plays in the same breath.
–
Charts:

PEIX Chart
BIOF Chart
–
Barchart Opinions:

PEIX: “Strong Buy”
BIOF: “Strong Buy”

–

America West Resources, Inc. AWSR

This is the latest promo stock that has been bouncing, on Friday running intraday from .50-.93 for an 86% gain. It has been the subject of a lot of chatter over the past week, so we are keeping our eyes peeled on this one.

Today’s Extended Watchlist:
AGCZ, BUCS, CRPZ, EXTO

BUCS, AGCZ & Today’s Extended Watchlist

Business Continuity Solutions Inc. BUCS

BUCS was first added to our watchlist a week ago today, as a bottom bounce play. We noticed the RSI recovering off of being slightly oversold, as well as a hint of a turnaround showing in the MACD.

At that time the PPS sat at just .025. Yesterday, the stock saw trades going off at .033, marking a 32% uptick in a week’s time. We notice that the bid support on this play is growing stronger, in the mid-to-high .02’s.

Last year, the stock was used to trading in the .05-.08, and has been as high as .055 as recently as Jan. 26th, leading us to believe that at the current PPS is in a good range to see additional upside.

–

Andes Gold Corp. AGCZ

AGCZ has been on a steady uptrend this month, making higher lows and higher highs. On Thursday, the stock was up another 33% on the highest volume it has seen in over a year, yet there has been no recent announcements from the company.

With all of the volume that has begun to flow through AGCZ, we want afford it a spot on our watchlist moving forward, as the added activity could be a catalyst for added gains, should the momentum persist.

–

Today’s Extended Watchlist:

Explortex Energy, Inc. EXPX

Exit Only, Inc. EXTO

America West Resources, Inc. AWSR

EXPX – Explortex Energy, Inc. – Possible Bounce-Play?

Explortex Energy, Inc. EXPX

EXPX has traded nearly 10X its 10-day average volume, and was down considerably this afternoon. When we see this phenomena, it always gets our bounce-play sense tingling.

Three times in the past ten weeks, EXPX has produced gains ranging between 50-200%, and today the stock has begun to exhibit signs of a bounce after having undergone a fairly large sell-off.

That is why we wanted to add this play to our radars this afternoon- it should be interesting to see how things unfold with this heading into the end of the week.

BUCS, EXTO | Today’s Stock Watchlist

Business Continuity Solutions Inc. BUCS

We called the bottom on BUCS on the 16th, at which time, the stock was trading around a low of .025. We saw a new high of .035 yesterday, for a gain of 40% from our initial mention.

We are still confident in the stock performing well from these levels. We of course would like to see the stock make both higher highs and lows, reaffirming its bullish status.
–

Exit Only, Inc. EXTO

For those of you wondering why we continue to cover EXTO week in and week out for month upon months, we have drawn up a chart that illustrates our reasoning. This bouncy stock has created a flipper’s paradise, complete with predictable swings which are fit snugly into a substantially-pronounced uptrend.

From where it now stands, it doesn’t look like we are too many cycles away from testing previous highs reached this past summer at .0129. As if its predictable patterns didnt give enough of an indication, we are also seeing MACD and RSI states which are highly indicative of a continued uptrend in the short term.

VHGI, GRDO, EXTO | Today’s Stock Watchlist

Guard Dog, Inc. GRDO

As we stated yesterday, GRDO has a key resistance point at .0012, and it did bump into it before closing out the day flat at .0011.

It has performed well in the past for us, which is why you continue to see it on our watchlist. Accumulation/Distribution has been steadily rising since the the 13th, as you can see on this chart. In addition, the parabolic SAR is in an uptrend, not to mention the fact that the 50dma is rising toward the 200dma, heading for a Golden Cross.

GDRO is currently receiving a “Strong Buy” rating from BARCHART.com

–

VHGI Holdings, Inc. VHGI

We first called VHGI on December 9th, it was as low as .21, a fraction of today’s price (.70). The stock has been as high .749 (+257%), before undergoing a consolidation. The stock is now trading in a narrow channel between the mid-.50’s and the .70’s.

The RSI recently bounced off of the .50 mark, and we have seen two consecutive days of modest gains. With a favorable MACD setup, we are liking the look of the chart from a long-term standpoint.

VHGI is currently receiving a “Buy” rating at BARCHART.com

This Morning’s News:

VHGI Holdings, Inc. Completes Acquisition of Lily Group Inc. and Secures $13,000,000 Debt Financing

FT. WORTH, Texas, Feb. 22, 2012 /PRNewswire via COMTEX/ — VHGI Holdings, Inc. (OTC.QB: VHGI) announced today that its wholly-owned subsidiary, VHGI Coal, Inc. has completed the acquisition of all of the stock of Lily Group, Inc., and in connection therewith, Lily Group has secured a $13,000,000 debt financing in order to refinance certain existing debt of the Company, pay vendors, pay costs of the transaction and for short-term working capital purposes.

–

Exit Only, Inc. EXTO

We mentioned the tight channel in which EXTO has been trading of late, between .006-.007. Well, we once again saw a break in that pattern yesterday, with the stock running 50% intraday from .006 to .009. It closed out the day up 21%, exhibiting its ability to bounce for some nice gains.
–
The RSI is indicating some room left to grow, and we are witnessing a MACD kiss, so we will be keeping EXTO in the forefront of our minds, and near the top of our tickers.
–
EXTO is receiving a “Strong Buy” rating at BARCHART.com