Blue Horseshoe Stocks: FRO Review & More

Frontline Ltd. FRO

FRO has definitely turned out to be one of our biggest success stories of the past several weeks. Just to refresh people’s memories, we caught this play coming off of some of its lowest prices of the year back on December 1st. Our observed low on FRO was 1.33 at that time, and in two huge upward moves the stock has traversed quite a bit of territory since then.

Yesterday FRO achieved a high of 5.05, which marks a total increase of 280% in just under six weeks! As we did after the initial push, we could now see a possible dip-and-rip scenario. We’ll remain interested provided the stock maintains support at or above the $3-area on the pullback.

As we can see on the chart above, there is a potential Golden Cross in the making, and with tens of millions of barrels of crude to be held on tankers over the next few months given the current oil landscape, this may not be the last time we point to big moves from FRO.

BARCHART.COM is currently giving FRO a “100% Buy” rating.


Twitter, Inc. TWTR – Options

Following up on one of the options ideas we were mulling over on TWTR last week; the TWTR February $40 Calls. When we first mentioned them last Wednesday (Saw a low of 2.15), we mentioned that they “could be in line for significant gains if TWTR continues to recover off of recent lows” and we did in fact see some substantial movement.

Those Feb. $40’s hit a high of 3.70 during the day yesterday, for an overall increase of 72% in a span of just four sessions! Even further gains could be forthcoming provided TWTR continues the current trend, so we’ll want to reserve it a slot on our watchlist as we head into mid-week.


Extended Watchlist:
NLST, CTIC, NSPR, RSH, ELX, ANV