Blue Horseshoe Stocks

ARIA, CAMT, MACK, ECPN & Extended Watchlist

ARIAD Pharmaceuticals, Inc. ARIA

Lately, our scans have certainly been yielding some profitable plays, and after appearing both in Friday’s extended watchlist and yesterday morning’s report, ARIA claimed its place as the next big winner to add to that list. As we approach Thursday’s holiday hiatus, we are expecting market activity to taper as people begin to travel to their holiday destinations and generally prepare for upcoming festivities. We may decide to suspend Wednesday’s newsletter, barring some unforeseen development that may need relaying.

But for now, let’s talk about the big day ARIA had for us yesterday. After opening at 4.06, the stock came back to a low of 3.92 before running up to close at 5.13. The Northerly movement continued post-market, and the stock is gapping up this morning, so we don’t want to let ARIA slip from our radars now. Remember, this stock was trading as high as the 17.00-range as recently as last month, so it still may have some ground to recover.

So far, from Friday’s low of 3.30, the bounce on ARIA has afforded us the opportunity to make up to 55% profit (at yesterday’s closing price) and we suspect that figure could continue to grow today.

Camtek Ltd. CAMT

CAMT came off of yesterday’s extended watchlist after it had been gapping up in premarket trading, and continued to roll throughout the day. We witnessed a move from 4.11 to a high of 5.29 on 58x the 3mo. average volume, qualifying this as a serious momentum play.

It appears CAMT will gap up once again (currently trading above 6.00) so we have our eyes peeled for continued upward activity today.

Merrimack Pharmaceuticals, Inc. MACK

On November 8th, MACK appeared in our daily report, at which time we mentioned a “big gap on the chart between the 3.00-3.40 level” that would bring us excessive gains if filled. We went on to mention the key point to watch for was a break of the 3.00 mark, and we did in fact witness that event this past Friday.

The move we were watching for did come to fruition, and the party may not be over yet; the stock is currently trading in the 3.50-range, so we will be very interested to see what happens today. We’d like to see MACK hold support at the 50DMA of 3.26 in order for it to have a good chance to pile on some added gains.

El Capitan Precious Metals, Inc. ECPN

ECPN hit our scanners today as a stock coming off of a recent consolidation that followed a big run on the chart. In early October it ran off of its 52-wk low (.055) and would subsequently hit .41 (Nov 13th) before pulling back to find support at .1142 last Thursday. Since that time it has been logging higher lows and higher highs, so we’d like to see a continuation of that trend which could make ECPN fall under the category of a solid recovery play.

We prepped a video chart on ECPN, click below and take a look:

Extended Watchlist:
ECTE, IMUC, ONVO, MBIS, OTIV, ICLD, BLRX

ARIA, PVG, ATRM, TEMN, INVA & Extended Watchlist

ARIAD Pharmaceuticals, Inc. ARIA

ARIA is the first of three solid winners to come off of our Extended Watchlist from Friday morning. The stock began by touching a daily low of 3.30, followed by a run into the 4.04 high, marking the opportunity for intraday gains of up to 33%

Just a word of caution, the company has a pending lawsuit in which it is being sued by a multiple plaintiffs in a securities fraud case that will commence next month. On October 9, 2013, the Company announced that the U.S. Food and Drug Administration placed a partial clinical hold on all new patient enrollment in clinical trials of Iclusig, following reports of non-serious and serious adverse events in Iclusig-treated patients. Following this news, the price of ARIAD shares dropped nearly 66%, or $11.31 per share, from the previous day’s closing price of $17.14 per share, to a closing price of $5.83 per share on October 9, 2013, on extremely heavy volume.

As a result, investors who purchased ARIA stock between Dec.’11 and Oct.’13 are eligible to take part in the class-action suit.

Pretium Resources, Inc. PVG

PVG was another substantial gainer for us on Friday, bringing us gains to the tune of 48% as the stock tore out of the gate, pausing only briefly near its low of 3.93 before skyrocketing as high as 5.80 early in the session. For the remainder of the day, PVG held much of those daily gains, and managed a strong close at 5.32.

That kind of momentum makes PVG a good candidate for a possible continuation of momentum, so we want to make sure we’re paying close attention as we begin this short trading-week.

Aetrium, Inc. ATRM

ATRM is another one that came out of the gate with guns blazing on Friday. After opening at 8.46, the stock spiked sharply to a morning high of 10.45, nice 24% move.

Later in the session, we observed a bounce from 5.60 back up to 6.68, which added an opportunity for an additional 19% gain, bringing the total cumulative gains for ATRM to a very respectable 43%

When added to the gains we saw from our other selections, our total possible gains for Friday’s session topped out at 124% All in a day’s work!

Team Nations Corp. TEMN
&
Inova Technologies, Inc. INVA

We observed these two sub-penny plays hitting our scanner on Friday, trading substantial volume. We want to be on the lookout for any possible continuation of momentum heading into this week.

In the case of INVA, the stock was trading at more than a penny as recently as October, and is now coming off of a bottom, so it will interesting to see how much of its lost ground it can gain back. A return to October levels would mean gains up to and exceeding 100% from its current price.

TEMN Video Chart:

Extended Watchlist:
INO, OREX, CAMT, SIRI, DVAX, ONVO, GLUU

GOGO, AZC, PHOT, CBMX & Extended Watchlist

GOGO, Inc. GOGO

Yesterday after appearing as a focus in our morning report, GOGO responded by posting yet another solid performance. After sinking to a daily low of 27.11, we witnessed a 12% intraday move to 30.26 on twice the 3mo. average volume. That was followed by a strong close, as it held the majority of its gains at 29.70.

The following screenshot captures the activity of the options we were interested in: The 01/18 $30 Calls made a 78% intraday move, and with the way GOGO is trading up pre-market, it’s fair to expect these contracts to be pushed even deeper into the money, adding to our already impressive chances for profit.

Augusta Resources Corp. AZC

AZC also had a positive showing after yesterday’s report; the stock traded in a range from 1.06-1.25, giving us the opportunity to bank up to an 18% gain. We were correct in assuming that this recovery play was worth our attention, and a return to pre-11/20 levels would still mean significant gains from where it sits now.

Growlife, Inc. PHOT

We’ve continuously covered PHOT for over a year now, and the stock has definitely brought us some prime opportunities for sizable gains, as a quick glance at the chart will show. A recent dip back to the .06-range has been immediately followed by a significant bounce. We are looking at resistance sitting at .095 and from there it has a good chance to re-test recent highs.

We’d like to see higher lows today to confirm that PHOT is indeed back on an uptrend.

To take an even more in-depth look at the PHOT chart, view the video we prepared this morning:

CombiMatrix Corp. CBMX

CBMX came off of yesterday’s extended watchlist to have a big day. The stock opened at 2.48, and would ultimately touch a high of 4.44, which was good for a 79% intraday rip. This came on roughly 48X times the 3mo. average volume, so a stock with this kind of momentum flowing through it will surely continue to be on our watchlist as we close out the week.

Extended Watchlist:
MRIB, ARIA, USU, PVG, POZN, ATRM, ONVO, OIBR,

SAEE, AZC, GOGO & Extended Watchlist

7 Star Entertainment, Inc. SAEE

SAEE traded sideways yesterday, however we did see a significant amount of volume flow through the stock, to the tune of more than twice the three-month average.

The fact that SAEE didn’t lose any value, and maintained support above a penny is an encouraging sign. We are still on the lookout for further activity on this stock, because as we pointed out yesterday, the chart still looks favorable. A departure from the current holding pattern could certainly lead us to substantial realized gains.

As you can see on the chart below, SAEE is holding support above the 10 and 20DMA’s, and accumulation/distribution is as high as it’s ever been. We also have an RSI that is registering just below the 50-line, so we’ll be watching for a breach there as well. A PPS break of resistance at .013-.014 could get it there.

All in all, we are still fairly confident in SAEE’s ability to make positive stride from its current level.

Augusta Resources Corp. AZC

AZC hit our scanners this morning as a potential recovery play. Yesterday the stock tumbled more than 60% from its open just above 1.60, all the way down to the low .60’s. It appears as if we could witness a bounce off of that bottom today as the stock course-corrects following that sell-off.

The huge dip was catalyzed by the announcement that the US Environmental Protection Agency recommended the company’s application for a federal water permit be denied. That effectively puts the company’s plans to build out a copper mining facility on the scrap heap.

Still, whenever we see rapid losses of this magnitude, our thoughts always turn to reaping potential rewards off of the subsequent bounce.

GOGO, Inc. GOGO

We first began talking about GOGO on September 16th, after which time we witnessed an epic run from 14.79-31.55. Last week brought a consolidation and the stock reached a low of 24.24 earlier this week, where it found support just off of the 10DMA. Now that GOGO is headed back up, we will look for it to retest its recent highs.

Options Trading Idea:
On the options side of things, we are looking at GOGO’s 01/18 $30 Calls. They closed at 2.16 yesterday. Hypothetically, should GOGO break out to new highs by January, reaching 35.00, these Calls could be valued at upwards of $5.00 or better.

Extended Watchlist:
OXBT, CRNT, CBMX, ONCY,

7 Star Entertainment, Inc. | SAEE | Today’s Focus

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7 Star Entertainment, Inc. SAEE
SAEE is a brand new mention for today’s report, and is a play that we currently have on breakout watch. 7 Star is an online media/technology holdings company which currently has several irons in the proverbial fire.

First among the SAEE‘s endeavors are its online dating/adult match websites, of which it has several, including AdultMatchClub.com, an growing online personals community that already has over half a million members.

As many of you might already know, the online dating industry is valued at more than $2 Billion annually, and an increasing number of people are accessing that information through mobile devices. In addition to its dating websites, SEAA is working on an accompanying line of mobile apps to cater to this growing branch of tech culture.

Recently, the company has moved to increase the diversity of its business further, with its intended acquisition of Orbital Laboratories, a consumer electronics designer/manufacturer. In and of itself, Orbital has an awful lot going on. New products, a distribution agreement for existing ones, and a full complement of patents both awarded and pending.

From the Orbital Finder, an auto locator for those situations where you “misplace” your car in a crowded lot, to a line of high-end LCD televisions, the potential benefits from the addition of Orbital could add significant value to SAEE.

Carl Conte, CEO of SAEE had this to say: “We see a tremendous opportunity in the acquisition of Orbital. They bring to the table a valuable patent portfolio and an exciting pipeline of new products. We feel that the revenue potential for the combined company over the next 24 months and beyond is substantial and I believe that we are less than a week away from completing the final agreements,”

We’ll certainly be on the lookout for any further announcements from the company regarding this acquisition, after which time 7 Star has plans to begin the process of up-listing to a higher exchange that they are hoping to complete by the 2nd quarter of 2014. It is yet unclear as to whether they intend to effect a name or symbol change as part of that process; we’ll keep you posted.

From a chart perspective, we are happening upon SAEE at a relatively good time. The stock has begun to show signs of life after trading sideways for several weeks, is coming off of its bottom in the .006-.007 range, and has already pushed and held above the penny mark. The past four sessions have brought higher lows, a trend we’d like to see continued moving forward. We’ve prepared the following video to outline some of the finer points on the chart:

More Information on 7 Star, and its current acquisition target:

7 Star Website

Orbital Website