Blue Horseshoe Stocks

ONTC, RFMK, CMGO & Extended Watchlist

Onteco Corp. ONTC

ONTC proved to be an excellent alert for us yesterday. The stock began trading premarket at .0008, and subsequently hit a high of .0012, trading over ten times the three month average volume. Even those unable to catch the bottom and hang on for maximum gains (50%), a 22% profit was possible from the .0009 PPS at the open, to .0011. Any way you slice it, ONTC was a successful pick for Wednesday. As our included video chart suggested, resistance began cropping up at the 20 and 50DMA at .0012.

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Rapid Fire Marketing, Inc. RFMK

This stock first appeared on our watchlist on September 20th. Yesterday marked a new high since we’ve been following RFMK. Being as low as .0021 on the day of our alert, and yesterday touching a high of .0041, we’ve seen the opportunity to make a profit of 95%

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CMG Holdings, Inc. CMGO

CMGO first appeared in our newsletter on the 17th, and we re-alerted it again on Tuesday. From Tuesday’s low of .026 to yesterday’s high of .035, represents a gain of 35%

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Extended Watchlist:

EGCT, ECOB, MRNA, MJNA, CBIS, CCAJ, CLRX,

ONTC | Onteco Corp. | Special Alert

Onteco Corp. ONTC

As promised, we bring a brand new sub-penny play this morning, in the form of ONTC. We are thoroughly excited about the potential in this stock. For those wholly unfamiliar with ONTC, here’s a little background on what they do:

The company focuses on alternative energy, both domestically and internationally. Its wholly-owned subsidiary, NexPhase Lighting, Inc. designs and develops proprietary LED (light-emitting diode) lighting fixtures and control systems for large commercial/industrial applications.The company strives to make its products available at the lowest cost, highest efficiency LED fixtures available in the industry. The company is focused on the development of green technology in the field, and the commercial lighting industry is a prime target for an environmentally-sound shift toward less consumptive systems. In a world where policies continue to lean toward cleaner, more efficient use of energy, ONTC is in a prime position to to take full advantage.

Here are a few facts about LED lighting of which you may or may not have been aware:

LEDs include up to 60,000 hours of maintenance free lighting, while expending nearly half the energy of standard lighting solutions.
LED fixtures as a result, lead to reduced costs associated with the replacement of standard lamps and tubes for business owners.
LEDs are replacing fluorescent and incandescent lighting systems everywhere; LED light fixtures last twice as long and are just as efficient as fluorescents.
LEDs are 4-6 times more efficient than incandescent, and the tubes do not get especially hot, reducing the potential for fire.
The LED lighting industry has been projected to be worth upwards of $20B by 2014.

Apart from the advantages of LED’s over traditional lighting sources, Onteco in particular is doing a lot to ensure success in the marketplace, setting lofty goals for itself. The company intends to reach $150M in sales by the fifth year of production, and has positioned all of the pieces to make that happen. This includes becoming a Government Service Administration Vendor. In essence, what this means, is that when government agencies are in the market to update their lighting standards, Oteco is on the short list of providers to get the job done.

From a stock standpoint, we are excited about the opportunities ONTC could provide. While observing the Level 2 yesterday, we noticed the bid support at .0007 was strengthening, as you can see on the included snapshot below. We also saw some decent size buys at the offer, looking like it wanted to uptick. The stock held a higher low than the previous trading session, holding above the previous day’s low of .0006. Today we are looking to see a continuation of higher lows and added momentum. A low of .0008 this afternoon would reconfirm our assumption that ONTC is ready for a significant uptrend.

We have also provided you with a video presentation of the chart which you can reach by clicking below:

Also take a look at this morning’s press:

MIAMI, Oct. 3, 2012 /PRNewswire via COMTEX/ — Onteco Corporation (OTC.QB: “ONTC”), (the “Company”, or “Onteco”), provided additional information today on the spin-off of its wholly-owned subsidiary, NexPhase Lighting, Inc., (“NexPhase”), by means of a distribution of shares of common stock of NexPhase to the Company’s shareholders of record as of October 14, 2012 (the “Spin Off”), as announced on September 14, 2012.

The Company reports that it had filed the required Information Statement under Section 14(c) of the Securities Exchange Act of 1934, as amended, with the Securities and Exchange Commission (“SEC”), and is currently preparing a response to SEC comments received on the Information Statement. The Company intends to clear these comments as quickly as possible so that it can move forward with sending copies of the Information Statement to its shareholders. As previously stated, it is further contemplated that the shares of common stock of NexPhase to be distributed in the spin-off will be registered with the Securities and Exchange Commission with the result that a market will be created for trading of NexPhase shares and NexPhase will become a fully reporting company>>FULL STORY

For More Info Visit: http://www.onteco.com

GGHO, CMGO & Extended Watchlist

One thing we try hard to do, is continually offer up as many different, and hot plays as we can possibly find. Unlike other newsletters, we are not compensated for the vast majority of our picks. As a service to you, we sift through thousands of stocks on our scanners in a daily attempt to bring forth as many large-upside stocks as possible. Today we have hand selected two 3-cent stocks that both had some nice gains yesterday, and are now working with a fair bit of momentum. Based on yesterday’s performances, and how the charts are setting up, we felt that GGHO and CMGO both deserved a spot on our watchlist. We’ve included annotated charts for each one.

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Genesis Group Holdings, Inc. GGHO

The accumulation/distribution on GGHO is steadily rising, and the RSI passed the 50MA, headed into the powerzone. The PPO just crossed, and the histogram just flipped up to the bullish side. The stock broke this year’s previous high of .0279. Should there be a pullback, we’d like to see that hold as the future level of support.
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CMG Holdings, Inc. CMGO

The CMGO chart has many similarities, with the RSI heading north past the 50MA overlay. The stock has been holding support off of the 200DMA, and yesterday it broke above the 20, 50, 100DMA’s. We have a pinching PPO looking for a cross, and a Slow STO that has just crossed over.

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Extended Watchlist:

WSGI, AAPT, BLRX, TPI, JAG, ATRS,

LGBS, MTG, FONR & Extended Watchlist

Legends Business Group, Inc. LGBS

We like the chart on LGBS, another new play that stood out to us today as a good chart-play. The RSI has been holding firm having recently bounced off of the 50-line and getting ready to pass the 50MA overlay. There has been a solid level of support in the .0028 (100DMA) range, The histogram recently flipped up to the bullish side, and the PPO had a bullish crossover. We want to keep an eye on this play this week, as chart conditions are looking pretty ripe.

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MGIC Investment Corp. MTG

This morning we caught MTG on our scanner, as it is trading up 20% pre-market. Taking a look at the chart, there is a large gap to fill from the beginning of August, when the stock fell from the 2.50 range, on down to .66. Considering the fact that the stock is, today, gapping up past September’s resistance, there is a fair possibility that we could see MTG continue to rally to the two dollar range, where it could fill its gap.

We’ve pointed out the gap on the chart below for your convenience.

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Fonar Corp. FONR

Also gapping up this morning is FONR, a stock that made a big run earlier this year, trading as low as 1.81 in March, and rocketing to a high of 6.80 in April. The company released some really encouraging news this morning regarding some extremely heightened financials. We want to keep an eye on FONR moving forward as we see how this promising news affects the current momentum.

MELVILLE, NY, Oct 01, 2012 (MARKETWIRE via COMTEX) — FONAR Corporation (NASDAQ: FONR), The Inventor of MR Scanning(TM), reported today its year-end financial results for the year-ended June 30, 2012. The Company has now had nine straight quarters of profitability. For the 2012 fiscal year as compared to the 2011 fiscal year, the Company made improvements in revenues and profit across both of its operating segments, those being the UPRIGHT(R) MRI segment that includes product sales, service and repair fees, and HMCA, its STAND-UP(R) MRI center management subsidiary. All of these utilize the FONAR UPRIGHT(R) Multi-Position(TM) MRI which is also known as the STAND-UP(R) MRI. >>FULL STORY

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Extended Watchlist:

EGCT, RFMK, GDSM, CWTR, ALVR

Ecologic Transportation, Inc. | EGCT & Extended Watchlist

Ecologic Transportation Inc. EGCT

We’d like to welcome all of our new subscribers today. Those of you who have been with us for awhile, know that we have covered EGCT consistently for a good long while now. We first added it to our radar back on July 16th, and have no plans to cease our coverage any time soon.

This stock has given us tons of opportunities along the way. When we first began covering EGCT, it was trading as low as .30, subsequently running as high as .48. Next it dipped to .22 before turning up and surging back to .46. Again the stock pulled back, this time to .21, before reversing once again and touching .40. This week, EGCT has maintained a higher level of support, not trading any lower than .35, which is now acting as the new support level. Below .35, we seem to have support sitting at .30, and .25 as well.

We have prepared a detailed annotated chart this morning to illustrate some of the key technical points of EGCT. Looking at the chart, you can see that the stock has traded in a tight channel, achieving higher highs and higher lows, and offering savvy traders the chance to take advantage of large percentage gains from the bounces it has seen. In the time of our coverage, there has been the opportunity to lock in over 260% in cumulative gains. We’ve identified the key levels of resistance to be .40 and .45, a move past which point could send us into blue sky breakout mode.

It has been quite the rollercoaster thus far, but we feel that the ride is a long way from over. In fact, it has yet to even truly begin. The impending acquisition of ACE Rent A Car is the main element in what we feel should be an exciting future for EGCT. Once the recently announced financing is secured for said acquisition, things should really get interesting.

If you didn’t catch the special report we put out on EGCT a couple of weeks back, we strongly encourage you to do so now:

EGCT Special Report

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Extended Watchlist:

RFMK, BBDA, BLVT, CEII, ASTX, CYTX, TPI, BYFC, WSGI (Potential Bottom),