Month: September 2015

Blue Horseshoe Stocks: HRTX Recap, Bottom-Play & More

Heron Therapeutics, Inc. HRTX

During premarket trading on Wednesday, we spotted a unique opportunity in HRTX, which was in the process of surging on news of some positive Phase II study results. We pointed out that despite the excitement and subsequent knee-jerk reaction tied to the announcement, the chart had been looking bearish and “ripe for further losses” leading up to that point.

That’s what caused us to formulate an idea for the HRTX Weekly $45 and $42.50 Puts for when the stock began to pull back off of its hype-driven spike, and the ensuing chain of events followed our expectations to the letter.

From Wednesday’s high of 42.25, the stock tumbled back to a low of 35.12 during yesterday’s trading, and in the process the contracts we were monitoring put on quite a session-over-session performance. Over that short span, the $45 Puts traded in a range from 6.50-9.20 for a 42% move, while the $42.50’s made a slightly bigger move from 4.10-7.20 for gains of up to 76%

Boreal Water Collection, Inc. BRWC

BRWC was a mention in yesterday’s morning report, and the stock made a noteworthy intraday spike of 33% from a low of .0009 to .0012.

From the look of the chart, for us to remain interested, we’d need BRWC to maintain support above the current 50DMA of .0008 on any pullbacks and test its previous swing high of .0013. Beyond that point, there isn’t much in the way of resistance on up to the .0018-level.

Sientra, Inc. SIEN

We’re looking at SIEN as a potential recovery-play after news of a securities fraud investigation absolutely pushed the stock off of a cliff from the $20-level down to a new 52-week low at 9.38 yesterday. Even with the caveat of a pending investigation, we’re always looking at the possibility of snapping up highly-discounted shares when a stock tumbles so dramatically on events where no material changes in the company have taken place.

Already in the premarket we’re seeing a bit of a course-correction from SIEN as it has made its way back to the $11-mark. We’ll keep a continuous eye on this stock in coming sessions for the possibility of a rebound, and keep a lookout for any further updates regarding the accusations levied against Sientra.


Markets Gapping Up – Options Ideas

After taking a beating for the majority of the week leading into a late-day rally yesterday, the overall markets as a whole are gapping up early this morning, and we’d like to float a set of corresponding options ideas if the trend carries the way we suspect it might.

We’re going to be looking for some dip-and-rip action, and in doing so, have our sights focused on Weekly Calls* in both the SPY and AAPL chains. In particular, we’re zeroing in on SPY Weekly $193-194.50 Calls, and AAPL Weekly $115 and $116 Calls.

*Just to reiterate what we’ve said in the past- trading options with a weekly expiration on a Friday carries an inherently elevated risk-reward factor, and is certainly not for the faint-of-heart, or beginning traders.


Extended Watchlist:
PCSV, THCZ, QLTS, CHIT

Blue Horseshoe Stocks: PZOO News & More

Pazoo, Inc. PZOO

We come back to touch base with PZOO this morning as the company has released an update on its marijuana testing facility in Las Vegas. It’s significant in that PZOO has secured a loan for the capital to put the finishing touches on the laboratory, the terms of which state that the full amount will be paid from the proceeds of the lab itself.

The company also made some lofty claims, namely that it has such an impressive roster of clients-in-waiting, that when the labs do open, they will be in a position to break even in the first month of operation! We’re being told that this cash infusion will have things on track for a November grand opening, so we’re going to begin to monitor PZOO more heavily in the weeks ahead as more updates are sure to be forthcoming.

We also want to point out the current setup on the PZOO chart on the annotated snapshot below:

WHIPPANY, N.J., Sept. 24, 2015 /PRNewswire/ — Pazoo, Inc. (OTC: PZOO) is pleased to report that Pazoo has received a $200,000 Loan to be paid back from the revenue and earnings of the Las Vegas Facility.  There can be no debt to equity conversion as this is a more conventional form of financing.

The Note holder was so impressed by the Las Vegas Lab, and more so by the amount of growers that have committed to exclusively test with Pazoo, Inc subsidiary MA & Associates, LLC, that he was comfortable to be paid back from the revenue and earnings that will be generated from the Lab.  In fact, based on the commitments from growers, Pazoo management is confident that the lab will be at least break even within the first 30 days of operation, and will quickly transition to profitability.

Pazoo expects to have the Colorado testing facility to officially be under the control of Harris Lee Colorado, LLC on or about October 14 and have the Las Vegas Facility operational and testing product in the latter part of the 4th quarter.

David Cunic, CEO, states, “The moment is finally upon us. This is going to be an watershed 4th quarter for Pazoo and hoping for an explosive 1st quarter of 2016. We are very excited for the ownership transition in Colorado.  We have several growers in Colorado that are just waiting for Harris Lee Colorado, LLC to take over so they can begin testing with Harris Lee Colorado, LLC. Everyone can just feel the momentum and it has energized the team to see what’s in front of us.”  >> Full PR

We also suggest that our readers check out the official webcast the company recently published which essentially addressed every facet of the business: >>>VIEW WEBCAST

Extended Watchlist:
ARWR, CNAT, EGYH, SGNL, BRWC

Blue Horseshoe Stocks: GBSN Review & More

Great Basin Scientific, Inc. GBSN

If it wasn’t already clear why we kept GBSN on bottom-watch for the past three weeks since our initial flag, yesterday’s continued uptrend brought it into much clearer focus.

Yesterday, after we re-alerted our readers that it had finally lifted off from its annual lows with a nice 50% intraday move, we mentioned that we wanted to see the stock establish a higher base of support as well as new highs, and it got a good start toward that end.

From its morning low of .098, the stock hurtled its way up to a daily high of .1389, which represents an intraday swing of 63%, and from its ultimate low of a nickel from the session prior, an overall increase of 178%

Once again, we’ll look for GBSN to exhibit signs of a more sustained recovery in sessions to come; as a quick view of the current chart reveals, the stock is still in heavily oversold territory and still looking bullish. We’ll want to see it maintain support at a minimum of .0785 to consider the uptrend still in effect.

Heron Therapeutics, Inc. HRTX

HRTX is gapping up heavily in the premarket today on the heels of yesterday’s revelation that the company’s bunionectomy pain drug generated exceedingly positive top-line results in Phase II studies. There is a conference call that just got underway at 8:30AM Eastern discussing the results of that study.

Despite the excitement being shown presently, leading up to this series of events, the HRTX Chart was on its way down and looking ripe for further losses, with the PPS sinking below the 50DMA for the first time since early August, a weakening RSI, and a bearish MACD.  We’re going to be looking at a way to take advantage as the stock pulls back off of this morning’s perhaps over-inflated excitement.

If it turns out as we suspect it may, we’ll look for action in the HRTX Weekly $45 and $42.50 Puts, however, in the event that it appears a bigger move up is imminent, we’d need to hop to the other side of the fence, and in that case, we’d most likely look to the Weekly $40 Calls.

Clean Coal Technologies, Inc. CCTC

We first put CCTC on watch a couple of weeks back, including in our reports on both the 9th and 10th of this month. On those first two days, we witnessed a 42% run from .45-.64, which preceded a pullback to a low of .36 the following day (11th).

Since that time, CCTC has been on a steady incline, and yesterday stock reached a new high of .7238, which marks a seven-session swing of 101% Both it and GBSN have clearly demonstrated why it’s smart to keep a continuous eye on stocks appear to present a good opportunity. Occasionally it takes several days for an idea to mature, but as we saw in both cases here, our initial instincts did prove correct.

Extended Watchlist:
SIRG, STTX, EVTI, CMGO