Blue Horseshoe Stocks

Blue Horseshoe Stocks: AVNR, SINO, FREE & More

Avanir Pharmaceuticals, Inc. AVNR

We included AVNR in our extended watchlist yesterday and we were glad that we did. The company released an announcement concerning the positive clinical trials of its drug “AVP-923” which is used to treat Alzheimer’s >>Read The Release and what followed was one heck of a bullish session.

The stock saw an early low of 9.32, and steadily pushed its way up all session long, with the high of 13.09 coming just prior to the close. That mark represented a solid 40% intraday gain, as well as a new 52-week high! The amount of volume traded was also impressive, on the order of more than 89M shares, an annual record and more than 25X the three-month average, so we really like the timing of our alert on AVNR.

AVNR provides another good example of why we always remind our subscribers to check through our daily extended watchlist selections thoroughly, as hidden gems like this one tend to pop up with surprising regularity.

Sino-Global Shipping America Ltd. SINO

SINO began to run when the company released financials that included some significant highlights just prior to the close yesterday, and the stock is gapping up heavily this morning for what should be an interesting session.

Generally in these instances we’ll be on the lookout for the phenomenon we refer to as the dip-and-rip. Stockholders see the huge run, and the resultant profit-taking usually leads to a subsequent pullback. That’s where we’re waiting to catch the bounce and snipe some rapid profits.

FreeSeas Inc. FREE

FREE made its way down to a new 52-week low of .29 yesterday and could be in prime position for a possible bounceplay. This morning, the company has revealed that it has concluded the sale of one of its vessels for $12.25M and entered into a long-term charter with the new owners >> View PR

FREE is gapping up as a result and provided that the stock can break through resistance at roughly .45 which we’ve pointed out on the following chart, things could get very interesting.

Options Trading Ideas

We’ve got a couple of possibilities we’re looking at in the options arena today as well:

– RWLK $38-$40 Calls

– PBR $16.50 & $17 Calls

Extended Watchlist:
GRT, NWBO, DNDN, MSTX, STRI

Blue Horseshoe Stocks: APPG, RSH & OTIV Updates

Apptigo International, Inc. APPG

Our readers may recall that we tagged APPG as a potential bottom-play in Friday’s premarket report, as the stock was coming off its 52-week lows a couple of sessions prior.

We mentioned that we liked APPG “provided it can hold support above .365 in order to break the pattern of its recent downtrend”, and it did in fact maintain support above that level. We saw a daily range from .37-.43 which is equal to a 16% move, and the stock closed just a penny below its high-of-day.

We’ll be monitoring APPG as we kick off a new trading week, and looking for the stock to register higher lows and higher highs to confirm a sustained uptrend.

RadioShack Corp. RSH

Despite recent uncertainty caused by talk of possible bankruptcy proceedings, RSH did well on Friday. We’ve been tracking the stock heavily since the beginning of August, where we caught it at its 52-week low of .55.

Following a gradual incline to a high of 1.77, the stock has been under recent consolidation, and toward the end of last week we were looking for it to maintain support above its then-50DMA of .83, and it did just that.

On Friday it traded in a daily range from .86-1.00 (+16%), and closed at .91. Like the previously mentioned stock we’ll need to see RSH record higher lows and higher highs, and test its next key areas of resistance at 1.15 and 1.30.

It should go without saying that we’ll also want to keep our ear to the tracks for updates on RSH’s tenuous financial situation.

On Track Innovations Ltd. OTIV

OTIV made an appearance in Thursday’s newsletter on our extended watchlist. We saw the stock touch a low of 3.12 that morning, and then begin a gradual ascent spanning through Friday’s session as it went on to a subsequent high of 3.94 (+26%).

It’s going to remain high on watchlist today, as we’ve already seen trades in the premarket going off as high as 4.39. At that level, our total possible gain on this stock over the course of just a few sessions is expanded to 41%

Extended Watchlist:
AVNR, HALO, TWGP, API, MILL, NVFY

Blue Horseshoe Stocks: APPG, LULU, SCOK Updates & More

Apptigo International, Inc. APPG

We flagged APPG on August 25th after noticing that the stock was being subjected to a rapid sell-off, and was setting new 52-week lows. That period of consolidation continued over the past couple of weeks, as APPG finally found support just above .25 and began to bounce on Wednesday.

Yesterday we saw it recover nicely, briefly breaching the .40-mark before settling in to close at .38. The chart is exhibiting some signs of a premium-potential bottom play, so we’ll remain very interested in APPG provided it can hold support above .365 in order to break the pattern of its recent downtrend.

Lululemon Athletica, Inc. LULU Calls

Our options trading idea from yesterday’s newsletter was spot-on, with the dip-and-rip scenario we suggested playing itself out within the first twenty minutes of trading action. If you recall, we expected to see opportunities somewhere in the range of the $41-$43 Calls, and we weren’t disappointed.

The $42 Calls traded as low as 1.00 before ripping to a daily high of 3.38 (+238% intraday move), while the $43’s would trade up over an even more impressive span. Those saw a low of .59 and subsequent high of 3.02, making rapid gains of up to 411% a possibility.

Those were some serious opportunities, so a big cheer goes out to anyone who was able to take advantage.

SinoCoking Coal & Coke Chemical Industries, Inc. SCOK

SCOK, which has been a point of focus for us for most of this week, had another respectable day yesterday after we included in our extended watchlist. After a morning low of 5.60, the stock subsequently ran to 7.78, affording traders the chance to bag up to 39% in profits. Congratulations if you were among them!

Extended Watchlist:
S, ASTI, EFOI, OPTT, CGA

Blue Horseshoe Stocks: RSH, KNDI, PBR & More

Some Recent Favorites on Bottom Watch

Each of the following stocks brought us large gains earlier this year, and have all been in recent consolidation patterns. They began to exhibit signs of a turnaround on Wednesday. We want to have them all fresh in our minds in coming sessions as we scan for potential bounce-play opportunities that present themselves.

Kandi Technologies Group, Inc. KNDI

We mentioned last Friday that we would be monitoring KNDI for a bottom this week, and began to witness it yesterday as the stock came down to hit 14.79 before snapping all the way back to 16.30, a 10% intraday move. We’ll be on the lookout for signs of continued recovery.

Petroleo Brasiliero S.A. (Petrobras) PBR

PBR appeared to find its low at 17.06 yesterday, and began to rebound into the close at 17.38. As our readers already know, it’s the PBR options chain that has provided us with the most opportunities this year, so once we get a good indication that the bounceback will be sustained, we’ll get a better gauge of the most interesting contracts.

RadioShack Corp. RSH

RSH took a substantial dip to the .77-range to start the day yesterday in anticipation of a disappointing quarterly earnings call taking place at 9am this morning. There was a brief bounceback over a dollar and the stock did end the day back up in the lower .90’s. Rumor has it that there is a high probability of the company declaring bankruptcy, so while there is still a lot of uncertainty in the air, we’re just going to want to monitor RSH to hold support at or above the 50DMA of .83, otherwise we may want to prepare for further decline.

Others to Watch

We’ve got another pair of plays that carry some potential as we head into week’s end, ones that have yet to appear in our reports prior to today.

Wet Seal, Inc. WTSL

WTSL was a hit on a routine scan today; the stock is gapping up this morning. We’ve noticed a large gap to fill on the chart between .90 and 1.00, and trades are presently going off in the pre-market at .73, up over 7% already. The filling of that gap and returning to 1.00+ would mean sginificant gains from here so we’ll be watching this one closely.

Natural Health Trends Corp. NHTC

Yesterday we took notice of NHTC hitting its own low point on Tuesday, and the stock did actually see a significant bottom bounce to more than $17 before pulling back into the close to fall below $13. We’ll want to keep an eye peeled to see if we can use some of that volatility to our advantage.

Added Note:
Lululemon Athletica, Inc. LULU Calls

LULU is gapping up on an earnings beat this morning, so we’ll be looking for profit-taking to create a potential dip-and-rip scenario that could lead us to opportunities in the $41-$43 Calls.

Extended Watchlist:
SCOK, OTIV, AKS

Blue Horseshoe Stocks: SCOK Update & more

SinoCoking Coal & Coke Chemical Industries, Inc. SCOK

SCOK was a huge standout call from yesterday’s newsletter. The play came off of our extended watchlist and it was pretty apparent right from the get-go that we had a breakout runner on our hands.

After trading for a little as 3.35 at the open, the stock quickly shot skyward, bulling its way up to an astonishing afternoon high of 9.37. That was an incredible intraday pop totaling 180% on volume exceeding the monthly average by more than 151X (an all-time record!) so cheers go out to anyone who caught this monster mover with us!

The major chart development came concurrently with an announcement by the company regarding an upcoming coal-to-gas conversion project in China which is “expected to be completed in February 2015 and yield syngas output of 60,000 cubic meters per hour, which the company says will equate to $30 million-$45 million in added gross profit by 2015.” >>>READ PR

It’s important to temper enthusiasm after a huge news-fueled run like this, and to keep in mind that even after yesterday’s huge pop, the company does still only have a market cap of roughly $170M, so a course correction would not be a surprise from this point. For anyone who isn’t already in on the action, a safe route would be to wait for a pullback and subsequent bounce.

Alkame Holdings, Inc. ALKM

We sincerely hope some of our readers were able to capitalize on our flag of ALKM in yesterday’s report. We radared this play after it was yielded up by a routine morning scan showing significant trading action, and it was a good thing we did.

ALKM started out trading at .157 in the early morning, and began to steadily uptrend. Around lunchtime, things really began to kick into high gear, as the stock would go on to reach a high of .27. That marked an intraday increase of 72%

The volume in ALKM was rather significant as well, to the tune of just over 38X its 3-month average, and the stock held a vast majority of its gains into the close, however we would still urge readers to use extreme caution in dealing with this stock beyond this point. We’ve identified it as the latest pick from the notorious group of promoters formerly known Awesome Penny Stocks, who says that they “expect to receive” a whopping $4.6M for the promotion of ALKM by a group calling themselves “LaLuna Services, Inc.”

If the group’s past exploits are any indicator, the stock is likely to fall flat after its rapid upward surge, and runs a real risk of being halted by the SEC (like their next most recent play, PGFY). For that reason, we would categorize ALKM as extremely high-risk moving forward, but with large funding of that nature behind the promotion, a continuation of momentum into today does remain a possibility.

Regardless of what happens from here, we’ll chalk up our happenstance inclusion of ALKM in yesterday’s email as a big win!

Extended Watchlist:
PULS, CAMT, DRL, MNDL, MNOV