Blue Horseshoe: ACDU, GOGO, GERN, OXBT, NQ & More

Accredited Business Consolidators Corp. ACDU

We had included ACDU in Friday’s newsletter after noticing increased volume and building momentum in Thursday’s session. Opening strong and rallying out of the gate, the stock touched a high of .0093 before consolidating and retracing on a midday pullback. We observed as ACDU found support and bounced from .0061 back up to .0086 (+42%) and ended the day solidly at .0083.

Congrats to anyone who was able to take a quick profit from ACDU.

Gogo, Inc. GOGO

We’ve been monitoring GOGO pretty closely since Sept. 16th at which time the stock was trading at 14.79.  By Sept. 26th, we saw the stock hit a high of 19.80. Over roughly the next month, GOGO retraced back to 15.90 (10/24). This morning GOGO appears to be gapping up significantly, hitting a high of 22.30 premarket, so we’re definitely going to continue paying close attention to this stock.

Geron, Corp. GERN

After we mentioned GERN in Thurday’s report, we saw a good short opportunity as the stock fell from the high 7.70’s to below 6.00.

On Friday the stock opened in the 5.00-range, and continued its descent, trending down to the mid-4.00 range. As GERN has pulled back so drastically in a small amount of time, we are watching for the dust to settle, and poising ourselves for the potential rebound which could follow.

Oxygen Biotherapeutics, Inc. OXBT
&
NQ Mobile, Inc. NQ

OXBT made a move from a low of 1.46 to 11.40 for a 681% gain since we began following it near the end of October.

Roughly around the same period of time, we also starting watching NQ, at the time trading as low as 8.42, which would go on to hit a high of 15.85, an 88% gain.

Both of these stocks underwent big consolidations last week, and began to rebound toward the end of the week. As is often the case following major runs, large pullbacks, if properly timed can make for some excellent quick-strike opportunities to profit. Thus, we still have both of these on our radar.

From Friday’s Extended Watchlist:

Revolution Lighting Technologies, Inc. RVLT

RVLT traded as low as 2.88 on Friday before hitting a high of 3.54, a possible gain of  23%

SunEdison, Inc. SUNE

SUNE traded from a low of 11.00 to 12.75, a positive intraday move of 16%

Groupon, Inc. GRPN

GRPN traded in a range from 9.45-10.43, a 10% gain.

Peregrine Pharmaceuticals, Inc. PPHM

PPHM saw a 1.22 low and went on to close at its high-of-day at 1.30, for a modest 7% increase.

Extended Watchlist:
DROP (Coming off recent lows),TCPS, XCLL(Golden Cross), DSCO, FRO, NNVC, GURE, CLRX, ZLCS (Huge gap down, watching for possible rebound)

GERN, MACK, ADSU, ACDU & Extended Watchlist

Yesterday’s OTC Shutdown

We wanted to comment on the lack of OTC trading yesterday even though our newsletter didn’t happen to contain any OTC stocks. Due to an alleged glitch in connectivity, FINRA made the call to halt all trading on the OTC Markets. It took most of the day for a solution to be enacted, but apparently the problem was resolved, and trading will resume normally today. This wasn’t the first time this year that a US Market has been shut down for glitches in data streams, as many you of recall, NASDAQ was hit with a similar occurrence which forced a halt back in August.

Geron, Corp. GERN

We added GERN to yesterday’s extended watchlist upon witnessing pre-market trades going off in the 4.00-range. It was gapping up big-time from its previous close at 3.60, and began the day’s trading at 7.25. This was a red flag, and as is usually the case with a stock which has spiked so violently, GERN hit its top at 7.79, and began the inevitable reversal. This would have been an excellent opportunity to short the stock, and cover in the 5.00-range for a rapid profit to the tune of 40%

Merrimack Pharmaceuticals, Inc. MACK

MACK is a bottom-bounce play that we picked up on yesterday, and like it as a potential recovery play. There is a big gap on the chart between the 3.00-3.40 level, the filling of which could provide us with gains of 30% or more. We’ll have it on watch today to break that 3.00-mark.

Aden Solutions, Inc. ADSU
&
Accredited Business Consolidators Corp. ACDU

We noticed that these two plays began to breakout yesterday on abnormally high volume. We want to keep them on watch for a continuation of that momentum into today’s session.

Gainers From Yesterday’s Watchlist

Here are picks from yesterday’s extended watchlist that fared well and offered us the chance at gains:

NeuroMetrix, Inc. NURO saw a low of 2.38, and ran 20% to 2.85 roughly between the hours of 10am-1pm

LivePerson Inc. LPSN touched a low of 10.61 before hitting its daily high at 11.44, an 8% increase.

Extended Watchlist:
PPHM, GRPN, RVLT, OXBT, SUNE

OXBT, MCHX, TWTR & Extended Watchlist

Oxygen Biotherapeutics, Inc. OXBT
–
OXBT followed our expectations to the letter yesterday. We were heralding the stock for its stellar 560% gain, then mentioned that we would be “on alert for any possible pullbacks, because those will often lead to excellent bounce opportunities.” The monstrous run that had begun a few days prior found its apex, giving way to a significant consolidation. After opening at 9.73, OXBT went as high as 11.40, that’s 17% intraday, and from our original alert low of 1.46 (10/29), a tremendous 681%

Upon the anticipated pullback we saw the stock fall to 6.81, bounce, close at 7.70, and this morning pre-market trades have been going off above the 8.00-mark. Moving forward we’d like to see the stock hold support above yesterday’s low, and continue to make higher lows.

This whole thrill ride was catalyzed when OXBT’s partner Phyxius Pharma announced testing results on its heart medication, ‘Levosimendan’, which showed effectiveness in reducing mortality rates among patients undergoing surgical procedures with reduced cardiac function.Tests at the Duke School of Medicine showed it could potentially reduce unwanted outcomes from open heart surgery by as much as 50%. OXBT has a standing agreement to acquire Phyxius, and by extension, the rights to Levosimendan. This is a story we will continue to follow through to its conclusion.

Marchex, Inc. MCHX

MCHX appeared in yesterday’s extended watchlist and made a nice move, trading in a range from 8.17 to 10.00. That represents a 22% gain, and the stock did manage to close out the session maintaining much of that increase at 9.91.

The Twitter IPO – TWTR

As many of you undoubtedly know, on Wednesday, Twitter priced its shares at $26, and will begin trading on the NYSE today under the symbol TWTR. As we did with Facebook, we are using caution early on, as the conditions seem set to create a “perfect storm” of volatility out of the gate. Demand from the outset is expected to be very high, which would create buying pressure and likely cause a significant increase as the first shares begin trading hands. Some experts believe as much as a 30% initial spike could occur, which we believe would lead a sizable number of investors to take those quick profits off of the table right away. That wave of selling pressure could kick up the volatility, causing some major swings in share price.

On the other hand, if demand for the stock has been underestimated, we could be looking at a maiden run that spans multiple sessions. This is why, and the Facebook IPO certainly provided a good lesson to that effect, we are approaching TWTR with a healthy skepticism. No matter how it all plays out, it will be very interesting to watch. You can be sure we will continue to comment as the situation unfolds.

Extended Watchlist:
GSS, JCP, OXGN, LPSN, NURO, GERN, AGEN(Coming off of recent lows)