Blue Horseshoe Stocks: SKTO Report

SK3 Group, Inc.  (aka Medical Greens) SKTO

Our regular readers are more than familiar with SKTO, as our coverage of this stock goes all the way back to last year (We actually caught this when it was trading as low as .0023!), but for the sake of our newest members, allow us to profile SKTO once again, and look into recent developments.

SKTO is, of course, part of the enormously successful marijuana sector, which sprung to life several months ago, leading up to the beginning of legal sales in Colorado. We’ve been heavily tracking this market space all the while, and have been afforded chances at percentage gains totaling in the tens-of-thousands as a result.

There are several things going on with this stock that make it ripe for the picking, from operating in such a popular sector, to recent alliances, and one heck of a chart setup.

Before we get into that, let’s touch upon the latest news on the cannabis legalization front.  Last Friday, at an appropriations committee hearing, US Attorney General Eric Holder offered this on the legal reclassification of marijuana: “We [the administration] would be more than glad to work with Congress if there is a desire to look at and reexamine how the drug is scheduled”.  There is evidence of a very real desire to do just that, with nearly 20 congressional members already having called upon Obama to take the matter into his own hands.

At present, marijuana is actually considered and treated as a Schedule I substance, placing it on par with drugs as dangerous as heroin. Any person with a little common sense and education can tell you that by no means do these two substances belong in the same category.

This comes as the latest in a series of position-softening comments by members of the Obama administration, including the president himself, that signify to us that the groundwork for widespread legalization is already being laid. It’s truly just a matter of time.

This cultural revolution is making it possible for stocks just like SKTO to make small fortunes for quick-witted traders , and one of the things that makes this play exciting is the alliance it has formed with yet another of our favorite past pot plays, AEGY.

Operating as PharmaJanes, AEGY has teamed up with SKTO (operating as Medical Greens) as outlined in a recent PR, with the intent being to “merge the two companies for better market efficiencies and to create a single medical marijuana market support company which can qualify for a higher (AMEX, NASDAQ) market listing.”
If it were just any company involved in such a pact, we might not take it as seriously, but coming from a revenue-producing company like SKTO, it begs our attention. After all, reported gross revenues increased for each of the first three consecutive quarters of 2013, and we wouldn’t be surprised to see that number climb with the upcoming release of 4th quarter financials.  The company recently put in for a late filing, and per that statement, we can expect those numbers to be released by April 15th.

Lastly, we’ll take a look at the SKTO chart, which is looking ripe at the moment.  The stock has begun to bounce, and indicators suggest we could easily pile on further gains from here.

As you can see on the chart, the RSI is rising sharply, and the MACD is exhibiting the beginnings of a bullish pattern. The main area of resistance we are looking at is the 50DMA of .034, and beyond that, recent swing-highs at .042 and .052 and .0735.

If SKTO were to break resistance at its 50DMA, a return to those levels would mean gains from 65-188% over the current price of .0255, so we’ll definitely be watching SKTO closely.

Blue Horseshoe Stocks: AVOP, PBR, FRMC, UTRM

AV1 Group, Inc. AVOP
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First thing’s first; we want to congratulate anyone that caught AVOP off of yesterday’s Extended Watchlist. Marijuana-related news strikes again! The stock traded as low as .0006 early in the morning, and would go on to push as high as .0015 just prior to the close.
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That was good for an intraday run of 150% from this play on the heels of a press release stating that the company had been the subject of a friendly takeover by the Marijuana Incubator Group, which specializes in cultivation technology. We’ll definitely be following along with this story moving forward.

Petroleo Brasiliero S.A. (Petrobras) PBR

Yesterday we saw PBR make its first big consolidation since we began tracking its recovery off of all-time lows, but not before gapping up to a new high. It provides a good lesson as to why it’s always a good idea to sell into a gap-up and lock in those profits on strength.

Despite the dip, yesterday’s low of 13.70 is still significantly higher than its 11.25 price when we first came across the play on 03/21. We’d like to see support hold at or above that 13.70-mark, or risk seeing a more substantial pullback. Below that, the next level of support is the 200DMA at 13.47.

Overall, PBR and its options chain has exceeded our expectations at every turn, and provided it holds the level of support we just mentioned, we still like the May $12, and April $14 Calls for longer-term chances, and the $13.50 and $14 Weekly Calls for possible short-term opportunities.

Formcap Corp. FRMC

One of the potential bottom-plays we put forth in yesterday’s morning report went on to have quite a session. FRMC traded in a range from .031-.0489, representing a positive intraday move of 58%

It also marked the third consecutive session of the stock making both higher lows and higher highs, further confirming the uptrend off of its recent bottom.

United Treatment Centers, Inc. UTRM

We also want to point out one of our recent interests with fresh news hitting the wires this morning. We’ve been expecting an update from UTRM and it’s finally arrived:

LOS ANGELES, CA–(Marketwired – Apr 9, 2014) – United Treatment Centers Inc. (OTC Pink: UTRM) (PINKSHEETS: UTRM) DBA www.PotNetwork.tv: “We have closed our first round of financing and will launch full scale website/video operations on 4/20/2014. After fielding several offers, we have put together a structure that enhances shareholder value and is commensurate with our long term objectives” >> FULL PR

Speaking of marijuana-related plays, we will be re-alerting one of our old favorites tomorrow, be sure not to miss out on Thursday’s report hitting your inboxes between 9-9:30AM! This stock is primed with the potential for a serious move, so stay tuned!

Extended Watchlist:
JRCC, SNMX, MNGA, ZGNX, APP

Blue Horseshoe Stocks: PBR Update, New Bottom-Plays

Petroleo Brasiliero S.A. (Petrobras) PBR
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Our regular readers are already extremely familiar with PBR, as it has been a topic of heavy discussion since first introducing it on Mar. 21st.  At the time, the stock was just coming off of its all-time low (03/17 @ 10.20), and following our initial mention, was trading at 11.25.

The chart we included in that report showed the gap that is currently being filled, now that the stock has broken into the 14.40’s in premarket trading. That leaves a clear path for this stock to break over $15 as it continues to fill the gap.

We were particularly interested in the May $12 Calls from the very start, which were at .31 at the time, and are now approaching 3.00 just as we suggested they might.

The $13 and $13.50 weekly calls we liked for short-term opportunities yesterday morning have done well too, with the $13’s trading in a range from 80-1.40 (+75%) and the $13.50’s spanned from .33-.90, gaining as much as 173%  We also have been alerting the June $14 calls which are up over 150% since we first introduced them to our readers in the .40 range. They reached 1.08 yesterday.

Given the current conditions, we may be looking at rolling our strike price up to the $14.50 Calls for further short-term opportunities.

All in all, PBR has behaved very predictably in its recovery thus far, providing us with chances to profit at every turn. Even where the stock is concerned, a position taken at our observed low of 11.25 on March 21st, is worth roughly 25-30% more at this morning’s premarket highs in the 14.40’s, and we expect that figure to grow.

More Potential Bottom-Plays

PBR has certainly shown us the value of a good bottom-play, and we have a couple of other candidates that fit that bill to add to the radar today:

NewLead Holdings Ltd. NEWL

As you can see from the following snapshot of the NEWL chart, this stock has been on a fairly steady decline since early this year. As it is gapping up in premarket trading this morning, there is a chance that the bounce could be taking place right here, so we’ll want to watch carefully. At present, NEWL is heavily oversold.

Formcap Corp. FRMC

FRMC is coming off of its own recent lows, and has made higher lows over the past three sessions. While it is not gapping up early on today like NEWL, we’ll still want to keep an eye peeled, as a return to recent levels for this play would mean significant gains from here.

Extended Watchlist:
PLUG, FCEL, ONCY, LMNS, ARTX, AVOP (Marijuana News)

Blue Horseshoe Stocks: Updates on FRTD, TTDZ & More

Fortitude Group, Inc. FRTD
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As we embark on another week of trading action, we need to first post an update on the continued success of one of our recent picks, FRTD.

We brought our readers a prime opportunity with this cannabis play when we put it on our radar the morning of February 25th. That day, the stock would see a low of .0081 and it has been one heck of a ride ever since.

This is one marijuana-related stock that has actual substance, affirmed by a recent distribution agreement the company struck with herb vaporizer manufacturer ‘VaporVites’, that could see Fortitude processing orders from up to 80 Colorado marijuana dispensaries within the next quarter.

That mid-week news helped fan the flames that would push FRTD to a new high on Friday, as it touched .0784. That marked a whopping 868% from the low we observed roughly five weeks ago.

Triton Distribution Systems, Inc. TTDZ

TTDZ is yet another pot stock that we put on watch when it was trading sub-penny, and as a result of the investment community’s rising level of interest in everything cannabis, has burst through the penny barrier to achieve impressive new highs.

From a low of .0012 on 01/30, we’ve tracked TTDZ all the way to it’s new four-cent high on Friday; an overall increase of 3233% TTDZ has become a prime example of our continued interest in the sector.

While it’s true that the fevered hype that we saw at the beginning of 2014 surrounding the marijuana sector has normalized quite a bit, it is still one of the most high-potential market spaces. We are only just witnessing the beginnings of extreme change in this arena. It has already spread far beyond Colorado, with the Obama administration gradually softening its position on pot.

Atty. General Eric Holder, at a recent appropriations committee hearing, even said: “We’d be more than glad to work with Congress if there is a desire to look at and reexamine how the drug is scheduled”

We’ve already reaped vast rewards off of this fledgling space, with total gains numbering in the tens of thousands over the past few months, and we don’t predict an end to it any time soon, so be sure to stay with us!

Hemp, Inc. HEMP

HEMP, another of our favorite cannabis plays (Followed it from subpenny up to .34 earlier this year) came with dividend news this morning that we wanted to pass along:

Options Trading Side Note:

We’ve been tracking PBR heavily for the options trading chances it has provided us. Currently we’re radaring the May $12 Calls and the June $14 calls for longer-term trades, and are sticking with the $13 and $13.50 weekly calls for more rapid flip opportunities.

Extended Watchlist:
GCVRZ, UBIC, NTE, ISR

Blue Horseshoe Stocks: Updates on LWSP, TTDZ & PBR

Legacy Platinum Group, Inc. LWSP
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We’d like to update everyone on the status of one of this week’s successful picks. We first brought LWSP to our readers on Tuesdaymorning, at which time the stock opened up at .187.LWSP spent the next two sessions on the upswing, culminating in yesterday’s push to  a new high of .33. That marks a three-day overall increase of 76%

Moving forward, we’ll need to see support hold at or above .21 in order for us to remain interested in LWSP.

Remember, per Tuesday’s PR, we’re waiting for an upcoming name and symbol change, expected to begin on May 16th.  We’ll also be on the lookout for further updates from the company on its new direction in the e-cigarette and portable vaporizer market.

Triton Distribution Systems, Inc. TTDZ

For some of our newer readers, allow us to do a quick recap of how TTDZ has become one of 2014’s superstar picks for us. Beginning with our first alert on the stock on January 30th, we observed a low of .0012. and it has been pushing its upper boundaries ever since.

By the time mid-March rolled around, the stock had punched above .015, gaining well over 1200% from our first call, but the party was just getting started.

Flash forward to the present, and TTDZ has pressed its way all the way to an impressive high of .0385. Which means that in less than two months, we’ve seen a total increase of 3108% out of TTDZ.

This is another play that recently transitioned into the cannabis sector that has applied for a name and symbol change, and we expect to have an update on that within the next few weeks.

Petroleo Brasiliero SA (Petrobras) PBR

After picking up on PBR exactly two weeks ago today, we’ve seen some impressive trading action in that short time, especially with regard to the options chain.

Besides coming across this stock shortly after it hit all-time lows, and witnessing the start of one heck of a recovery, we also received news this week of PBR’s boosted production numbers from February, which were significantly higher than those of previous months.

Today we’ll be looking at the $13 and $13.50 Weekly Calls for possible intraday flip-opportunities. For those without the ability to stay glued to your screens all day, for longer-term possibilities, we’ve noted our interest in the May $12 Calls and the April $14 Calls.

In the event that PBR fails to hold support at or above the 13-dollar mark, we would have to reassess our opinions.

Extended Watchlist:
UDHI (News), LATF (Financials), JRJC, RGDX, ROSG, USAT, ZGNX

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