Blue Horseshoe Stocks

ATOS, CTIC, APP & Extended Watchlists

Atossa Genetics, Inc. ATOS

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We tacked ATOS onto our extended watchlist yesterday morning, noting that the stock was in the midst of a “Huge gap down” and that we were “watching for a potential bounce”. Indeed that was the case, as the stock touched a low of 2.54 before a reversal carried it as high 3.18, a 25% intraday gain. As usual, when we see big gap-downs, we are looking out for quick-strike opportunities that allow us to make a rapid profit and a timely exit.We have uncovered a few other stocks fitting that profile that we will be monitoring for similar activity today:

Tower Group Intl. Ltd. TWGP

CEL-SCI Corp. CVM

Celgene Corp. CELGZ

Cell Therapeutics, Inc. CTIC
Another play from yesterday’s extended watchlist, CTIC opened at its low of day, and rumbled upward for a 23% move, closing at the high of day on nearly 12X its 3mo. average volume. In doing so, it managed to break a previous swing high at 1.80, a level we’d like to see hold as support moving forward.

We prepared the the following video chart on CTIC:

With the kind of momentum CTIC built up over the course of the day yesterday, this is one play that will be near the top of our watchlists in the near future. The catalyst here seems to be an agreement announced yesterday between the company and the FDA as outlined in the press release below.

SEATTLE, Oct. 7, 2013 /PRNewswire via COMTEX/ — Cell Therapeutics, Inc. (CTI) (NASDAQ and MTA: CTIC) today announced that the company reached agreement with the U.S. Food and Drug Administration (FDA) on a Special Protocol Assessment (SPA) for the planned pivotal Phase 3 clinical trial, known as the PERSIST-2 trial, evaluating pacritinib compared to best available therapy, including approved JAK2 inhibitors such as ruxolitinib, in patients with myelofibrosis whose platelet counts are <100,000/uL. The SPA is a written agreement between CTI and the FDA regarding the design, endpoints and planned statistical analysis approach of the trial to be used in support of a potential New Drug Application (NDA) submission. The PERSIST-2 trial is the second of two planned Phase 3 clinical trials in patients with myelofibrosis. CTI expects to initiate the PERSIST-2 clinical trial in the fourth quarter of 2013. >>> FULL STORY

American Apparel, Inc. APP

APP is another stock we have tracked for an extended period of time. We have been watching this one to sniff out a bottom for the past few months, and wanted to re-enter it into the conversation today, as that point may be drawing near. A quick peek at the chart below clearly shows just that:

Extended Watchlist:

JCP, AGEN, CBMX, NAVB, TKMR

EWSI, FREE, PLUG, IDRA, DSCO & Extended Watchlist

E-Waste Systems, Inc. EWSI

Following Friday’s newsletter, EWSI opened at its low of day at .043, and would go on to close at its high of day at .05, marking an increase of 16% This comes after we pointed out the stock coming off of a recent bottom, and with a bullish close like we saw on Friday, we are going to be watching this one to make higher lows and higher highs to confirm the current uptrend.

We were clued into re-alerting EWSI on Friday as a result of a good chart setup on both the RSI and the MACD. With no morning gap-up, Friday’s 16% move was purely realized gain.

We have witnessed EWSI run to ten cents in the past, so we know for a fact that it is capable of much larger gains. Indicators seem to point to the current push spanning multiple sessions, leaving it high on our watchlists as we begin a new trading week.

FreeSeas, Inc. FREE
Over the course of a few weeks since we alerted FREE for the first time on 09/10, we have seen FREE go on a mammoth run from .2213 all the way up to .9287, an increase of 320%

Following that peak, the stock has pulled back to find support in the .60-.70 range, and now have it on watch for another possible leg up from these levels. The next key area of resistance from here is going to be the 200DMA at .98.

Plug Power, Inc. PLUG

We first called PLUG on 02/15 as a “potential recovery play” right after we noticed the stock hitting its 52-week lows. What we ended up seeing from PLUG was a recovery, and then some. Over the past several months, the stock not only regained the ground to where it had fallen off a cliff in early February, but the stock has continued its ascent, touching a high of .80 in early September.

As you can see, gains of nearly 600% were possible for anyone who had caught this play at or near its 52-week low on the heels of our initial alert.

Idera Pharmaceuticals, Inc. IDRA
& Discovery Laboratories, Inc. DSCO

Both of these stocks gapped up on Friday after appearing in our extended watchlist, and we still have them on our radars heading into this week.

Each stock traded large volume during Friday’s sessions, so we’re interested to see if they can build up some momentum.

Extended Watchlist:

RNN, ONVO, ONTY, CTIC, TKMR, ATOS(Huge gap down, watching for a potential bounce)

Blue Horseshoe: EWSI & Extended Watchlist

E-Waste Systems, Inc. EWSI

Following our last mention of EWSI, on August 21st, the stock was trading at a low of .0425, and in just six trading sessions, the stock had topped out at .10, racking in gains to the tune of 135%

Following that run, the stock gradually consolidated, as it searched for a bottom throughout the month of September. This morning, we are entering EWSI back into the conversation, as it appears to have found that bottom, and begun to show signs of another uptrend.

The stock breached its 50DMA at .043, and managed to close at that level. The chart is looking extremely ripe, as we’ve pointed out with the annotations below. We definitely want to keep a sharp eye on this stock today, and heading into next week. A return to its previous swing high could mean another triple digit gain from EWSI.

Extended Watchlist:

PTSC, DSCO, IDRA, ASTI, HSOL, STXS

DCTH, ZLCS & Extended Watchlist

Delcath Systems, Inc. DCTH

Following its inclusion in yesterday morning’s extended watchlist, DCTH would go on to have a massively successful day of trading. The stock, after briefly touching a bottom at the .402-mark, went on an absolute tear as it reached a high .66 around lunchtime.

A single-session gain of 64% on the first day we placed DCTH on our watchlist is certainly nothing to sneeze at, and given the circumstances behind the upward surge, that may have only been the beginning.

The company received word from the FDA that its Primary Liver Disease treatment, ChemoSat, had received “orphan drug” designation, a classification which denotes a drug or procedure that is aimed at a disease which affects less than 200,000 people. About 26,000 Americans are diagnosed with Primary Liver Disease each year.

(Thomson Reuters ONE via COMTEX) — New York, NY – October 1, 2013 – Delcath Systems, Inc. (NASDAQ: DCTH), a specialty pharmaceutical and medical device company focused on oncology, announced today that the U.S. Food & Drug Administration (FDA) has granted the Company orphan drug designation for melphalan in the treatment of patients with hepatocellular carcinoma (HCC, or primary liver cancer). >>>FULL STORY

Side Note:
We rarely see stocks in this price range with an active options chain, but DCTH is an exception. The 12/21 .50 Calls jump out at us at first glance. If the stock were to approach a dollar between now and the expiration date, one could be looking at triple-digit gains.

Zalicus, Inc. ZLCS

Coincidentally, ZLCS, a stock that we’ve been following since the beginning of last month, also received a recent FDA orphan drug designation for its experimental Z160 drug, intended for the treatment of pain related to the Shingles.

Hitting a high of 1.38 yesterday, we finally saw ZLCS fill the gap on the chart that we had been pointing out for some time. Since we’ve been following ZLCS, we’ve seen a low of .78, and yesterday’s high represents a 77% gain off of that bottom. The filling of that gap was a pretty good indicator that it was time to take profits off of the table, so we certainly hope that folks were able to take advantage.

This morning, they also announced a reverse split, the result of which should be the stocks continued listing on the Nasdaq Capital Market, as it should enable shares to remain above the 1.00 minimum bid price required for listing. We would expect shares to come away from this split valued in the $6.00-range, and sure enough, we are seeing trades go off as high as 6.45 pre-market.

Zalicus Inc. (Nasdaq Capital Market: ZLCS) today announced that it has filed a Certificate of Amendment to its Sixth Amended and Restated Certificate of Incorporation, with the Secretary of State of the State of Delaware to effect a 1-for-6 reverse stock split of Zalicus common stock, effective as of October 3, 2013 at 12:01 a.m. Eastern Time…The reverse stock split will reduce the number of shares of common stock issued and outstanding from approximately 147.5 million to approximately 24.6 million. >>> FULL STORY

Extended Watchlist:

VICL, CRRS, CIMT, MNTG, RNN, MSTX

IWEB, ZLCS & Extended Watchlist

IceWEB, Inc. IWEB

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Most of you will recall our coverage of IWEB, which began on July 9thand lasted through August. During that time, we saw the stock make a nice move off of its then-52 week lows, traversing its way from a low of .023 all the way up to .042, an 83% overall move, while also posting several hundred percent in cumulative gains during that time.You might also remember our outlining of the company’s aspirations to make the shift from cloud storage alone, to a full-range cloud services provider, and today, we received confirmation that the transition has been achieved, with the completion of the company’s most recent acquisition.

This is occurring shortly after we’ve seen IWEB come off of a new 52-week low, so the timing on this could actually work in our favor. We are going to have IWEB on bottom-watch as it searches for a base here, as well as watching for reaction to the good things the company obviously has going on behind the scenes.

STERLING, Va., Oct 01, 2013 (BUSINESS WIRE) — IceWEB, Inc. – (OTC BB:IWEB), today announced that it has completed its acquisition of Computers and Tele-Comm, Inc. and KC-NAP, LLC of Kansas City (collectively “CTC”). Details will be filed in a Form 8-K with the Securities and Exchange Commission. >>> FULL STORY

More Info:
www.iceweb.com

Zalicus, Inc. ZLCS

We caught ZLCS at a low of .78 last Friday, and mentioned it once again yesterday morning as we believed the stock was in for “another substantial move upward”. The stock did indeed turn in a nice performance yesterday, hitting a high of 1.20, a 17% intraday move, and an increase of 54% from Friday’s low. Rapid increases over such a short time period for a NASDAQ-traded stock are impressive to say the least.

In addition to another fruitful trading session with regard to price-per-share, ZLCS landed us an honorable mention on yesterday’s Penny Stock Rumble for picking the stock with the highest daily dollar volume.

Extended Watchlist:

NNRX, ALVR, EDG, LXRX