DRL Archives - Page 2 of 3 - Blue Horseshoe Stocks

Blue Horseshoe Stocks: DRL, PLUG Earnings & More

Doral Financial Corp. DRL

Following yesterday morning’s mention of DRL and the opportunities it has sent our way over the past couple of months, the stock once again provided for us. This time, it came in the form of a classic dip-and-rip, making its way down to an early-morning low of 6.80 before spending the rest of the session on the rise. We saw shares changing hands at 7.68 just prior to the close, a modest yet solid intraday move of 13%

Estimates have DRL’s earnings release pegged for the end of next week, so it should be interesting to see how this play fares over the next handful of trading days.

Petroleo Brasiliero SA (Petrobras) PBR Update

PBR has fallen into a consolidation pattern over the past couple of sessions, and we are monitoring the chart for signs of a bottom. The stock crept below 15.50, its lowest price in a month.

We’d like to see PBR get back above the 50DMA of 15.68, but in the meantime, we’ll need to see support hold above the 14.50-mark. Once we observe the telltale signs of another turnaround, we’ll be able to re-form our options trading strategies.

Plug Power, Inc. PLUG– Earnings Released

Our regular readers are well familiar with PLUG, a stock that has graced our reports dozens of times over the years, which we tracked over a mind-numbing range, .135-11.72, from early 2013 to March of this year. This morning will be a good time to turn our attention back to this hall-of-famer.

We want to keep an eye on PLUG in the wake of its earnings release early this morning. The stock is presently gapping up on the strength of record revenues, and looks to be gearing up for an interesting session. We’ve taken an excerpt from the PR, and provided a link to the full release below:

Total revenue for the second quarter of 2014 was $17.3 million, comprised of $12.6 million of product revenue, $4.4 million of service revenue and $0.3 million of research and development (R&D) contract revenue. This compares to total revenue of $7.5 million in the second quarter of 2013, which was comprised of $5.6 million of product revenue, $1.5 million of service revenue and $0.4 million of R&D contract revenue.

The Company shipped 687 units during the second quarter of 2014 compared to 246 units in the second quarter of 2013. >>> FULL RELEASE

Extended Watchlist:
KRED, ASTI, SYN, OIBR, FRO, FREE

Blue Horseshoe Stocks: MCPI, DRL, KNDI & More

Med-Cannabis Pharma, Inc. MCPI

First up this morning is an update on MCPI, which has been a juggernaut over the past week, beginning on August 4th at a price of .355. We’ve tracked the stock every step of the way, and yesterday, were pleased to see it break over a dollar.

At the high of 1.14, we were looking at an overall increase of 221% over the span of only seven sessions. Those who may have just picked up on MCPI following yesterday morning’s report, still had the opportunity to score some quick intraday gains as the stock ran 42% over its daily range from .80-1.14.

Anytime we see such rapid gains over so short a period, it starts to feel like the time to take at least a portion of our profits off of the table. However, unsustainable increases often lead to dip-and-rip scenarios as we’ve already seen from MCPI, so we aren’t done tracking it by any means.

Doral Financial Corp. DRL

Another recent successful call is DRL, which we first took notice of back on June 9th, at which time the stock traded at a low of 3.53. More recently, we re-tagged DRL on the 23rd of July, at a price of 5.23.

No matter where you mark our starting point from, yesterday’s move to a high of 7.47 represented chances for significant gains. From the 07/23 alert, it marked a solid move of 43%, and from our earlier 06/09 call, an overall increase of 112%

Kandi Technologies, Inc. KNDI Options

We’ve had KNDI in our reports and on our radars quite a bit this year. We’ve watched recently as the stock has consolidated over the past couple of sessions, and yesterday’s pullback to 17.03 seemed a bit exaggerated. The stock appears to be a gapper this morning, currently trading up in the high 17.50’s.

Should a reversal occur we’re going to have interest in the options chain, specifically the 09/20 $17.50 Calls. As usual, we’ll adjust our strategy accordingly as the overall trend becomes clear.

Side Note:

We want to radar NII Holdings, Inc. NIHD this morning as well, a stock that was recently hammered back to 52-week lows. We’ll monitor for the eventual bottom and any bounce opportunities that may present themselves.

Extended Watchlist:
ICTL, BTCS, LIVE, HPJ, FCEL

Blue Horseshoe Stocks: MCPI, DRL Updates & More

Med-Cannabis Pharma, Inc. MCPI

To start things off this week, we’d like to congratulate any members that followed our coverage of MCPI last week to their benefit. We tracked this play as it ran from .355-.55 (+55%) between Monday-Wednesday.

On Thursday, the stock had consolidated back down to a low of .3776, and we mentioned that we were on the lookout for follow-up from the initial spike to provide us with a dip-and-rip opportunity, and that’s precisely what occurred. As we headed into the end of the week, the stock made another push that would exceed the first, and we actually observed a new high of .64 into the close.

The second spike of the week offered up by MCPI amounted to possible gains of up to 69% while Friday’s new high marked an overall increase of 80% from the low we observed on Monday.

Cheers to anyone who was able to take advantage of our timely coverage on this Washington State marijuana play.

Doral Financial Corp. DRL

We tagged DRL for the first time back on July 23rd, and since that time, have seen this stock trading as low as 5.20. This play caught our interest mainly because of the lawsuit they’ve claimed against the Puerto Rican Government.

As a result of a tax discrepancy, it has been alleged that the treasury owes DRL as much as $229M. This morning, the stock is flying high in the premarket on word that hearings for the suit have been suspended until next Monday, so that a settlement between the two parties may be reached.

This could further speed up the process, even after the proceedings were recently ordered expedited by the Puerto Rican Supreme Court. While it is not likely to be the full sum, a settlement could mean a significant portion of that figure going onto DRL books straightaway.

We’ll keep our eyes glued to this one, as we’ve already seen the PPS rise from 5.20 to this morning’s premarket high of 7.20, a respectable 39% increase over the course of roughly seven sessions. The announcement of the completion of the settlement agreement, if and when it arrives, could catalyze even further gains.

DORAL FINANCIAL CORP Files SEC form 8-K, Other Events (Mon 8:00AM EDT)

Side Notes:

We also want to throw LKA Gold, Inc. LKAI into the mix today, a new gold play with a long history of producing mines.

Also, we’ll still be monitoring the PBR Options Calls. We played them like a fiddle last week, and will continue to utilize the action to our benefit. If the stock can get back above $16, we’ll be on the lookout for a substantial move out of the $16 Weekly Calls.

Extended Watchlist:
ELRA, IDST, MNKD, PIP, HGSH

Blue Horseshoe Stocks: DRL Update & More

Doral Financial Corp. DRL

We tagged DRL on Wednesday via our Extended Watchlist as the stock was coming off of a bottom. The low we observed came in at 5.23, shortly before DRL surged up, cutting a path all the way to 7.10, an initial spike of 35%

That led into yesterday’s session where we’d see another sizable swing, as the stock came back to bounce off of support at 5.33, and subsequently ran back to 6.06 (+14%).

We’re interested in following this play over a longer term because of what they have going on behind the scenes. It was ruled by the Supreme Court of Puerto Rico that the evidential hearing in Doral’s case against the Puerto Rican government be expedited. It is alleged that Puerto Rico owes the lender a sum of $229 million. If repayment is ordered, it could add big numbers to the company’s balance sheet, so this is one play that we’re going to want to monitor closely going forward.

You can find out more about the case of Doral vs. Puerto Rico at www.doralpuertoricofacts.com

RF Micro Devices, Inc. RFMD

RFMD is another stock we’re paying attention to, as it has gained ground in large strides this week on the heels of shattered expectations with regard to the release of the company’s quarterly figures. They saw a quarterly revenue increase of more than 23% setting a new record of $316.3 Million. There were a number of other highlights as well which you can read in the PR- we’ll provide the link below.

As a result of the news, the stock is in the midst of a heavy surge, and is gapping up significantly in premarket trading today. In scenarios such as these where a stock runs unusually hard, we like to wait for the inevitable profit-taking to occur, driving the price back down where we can accumulate cheaper shares and sell them for quick-strike profits on the subsequent bounce. It’s a strategy that has served us well many times in the past.

RFMD® Achieves Record Quarterly Revenue of $316.3 Million (Thu, Jul 24)

Side Note:

This also turned out to be another great week with regard to our options trading ideas. Our FB and ISRG Options Calls provided us with multiple chances for gains, from multiple angles. Cheers to anyone who was also able to take advantage of some great calls. We wish you a pleasant weekend, and we’ll see everyone bright-and-early on Monday morning to do it all over again!

Extended Watchlist:
BCOV, AWRE (Big gap downs), KNDI (Watching for reversal)

Blue Horseshoe Stocks: Options Trading Ideas

Intuitive Surgical, Inc. ISRG

When we first tagged ISRG back on May 6th, the stock was just making its way down to its 3-year low, which came a couple of sessions later at 346.46. From that point, we saw a powerful uptrend that carried the stock back up to 426.43 (Jun 27th). It allowed us to play the options chain quite effectively over the course of several weeks.

Following that major run, we’ve seen some consolidation, coming back to the $380-level just recently, and currently, the stock is pressing new highs in premarket trading, to the tune of $444.

We did mention a long-term interest in the Aug.-Oct. $420-440 Calls back in June, and that insight is now paying off bigtime.

Petroleo Brasiliero S.A. PBR -Options

When we looked in on PBR on Monday, we were patting ourselves on the back for some excellent picks of last week’s $16.50 and $17 Weekly Calls, mentioning that we’d stick with the same ideas to begin this week.

It has turned out to be another great call on our part; just look at the action in those weekly calls during yesterday’s session:

The 16.50’s ran from .25 to 1.07, a possible intraweek gain of up to 328% while the $17 Calls surged from .13 up to .75, a 477% move. This was just one of many, many times that we’ve used the PBR options chain to our extreme advantage this year.

New Options-Trading Ideas

As our regulars have undoubtedly noticed, a good portion of our focus these days goes to options trading. We’ve become quite adept at spotting trends and using them to our benefit, and we’ve got a couple of new potential plays to add to the mix this morning.

Alcoa, Inc. AA

Alcoa has been building one beast of a chart over the past few months, and there looks to be no end in sight. We may be able to use this strong uptrend to leverage ourselves some nice gains out of AA Options. Specifically, the 08/16 $17 Calls, which closed at .44 yesterday after having traded in a range from .25-.48 on the day.

Yum! Brands, Inc. YUM

YUM got beat up recently, falling off a cliff at the $83-area, and yesterday was the first session since that the stock has found some support, down around $74. Our options idea here is to potentially utilize the rebound for some quick-strike gains. We’ll be monitoring the 08/08 $75 Calls, which closed at .82 yesterday.

Extended Watchlist:
DRL, DARA, TLM, PLUG, FCEL, POWR, PBYI