Blue Horseshoe: PBR, MLCG, MNGA & Extended Watchlist

Petroleo Brasileiro SA Petrobras (PBR)

We spotted this NYSE stock recently as it has bounced off of 10-year lows. PBR is going to be one that we monitor on more of a long-term basis. It has been awhile since we’ve come across a good recovery play, and the conditions on the PBR chart certainly point to the possibility of some nice upside potential.

As we point out on the following chart, PBR needs to break key resistance at 11.84 and 12.50 in order to make a run at the gap on its chart from 14.50-15.70. The filling of that gap from current prices would spell gains of more than 35%

In the meantime, we’re looking at the the PBR Options chain. The May 2nd $12 Calls could be promising, in the event that we continue to see a general recovery. Those contracts that are currently trading in the mid-.30’s could be worth as much as 3.00 if the stock returns to the $15-level.

For a quick daytrading idea, we are looking at the $11 Calls that expire at the end of the day. It appears as if PBR wants to gap down to start the session and we may see a possible dip-and-rip scenario.

ML Capital Group, Inc. MLCG

Speaking of dip-and-rip opportunities, that’s what we saw out of MLCG yesterday. After a morning gap-up, the stock came down to .09 before taking off again to hit a high of .12, a 33% intraday gain.

MLCG has proved to be a volatile mover since we’ve been following it (03/05), and has risen as much as 227% from its recent four-cent low.

MagneGas Corp. MNGA

We’ve been following MNGA throughout the week. We saw it start out by coming from a low of 1.15 on Monday, and subsequently run up to 1.78.

It then bottomed out in the low 1.20’s around mid-week, only for yesterday’s news that the company had been commissioned to provide torch-cutting fuel to four major demolition projects, carried it back up to 1.66.

We’re now watching its activity as it pulled back a third time, finding support at the 1.43-level, and is currently gapping up to reach new highs in the 1.90’s. From Monday’s low of 1.15, to this morning’s high of 1.97 marks an overall increase of 71%

Extended Watchlist:
UTRM, UPIP, DEJ, PAL, AVEO, GNK, RGSE, BGMD, ECYT

Happy New Year from Blue Horseshoe Stocks

With tomorrow’s holiday splitting another week right down the middle, we’d like to take this opportunity to wish our audience a very safe, healthy and Happy New Year. 2013 was an extremely successful year for us, and we are really excited to make 2014 even better!

At this point all of our regular readers are aware of our ongoing interest in marijuana -related stocks. We’ve covered this relatively new and rapidly growing industry tenaciously over the past year-and-a-half, and to our great pleasure, it has provided us with countless opportunities to profit.

Cannabis Science, Inc. CBIS

CBIS is an old favorite of ours that has delivered the goods on several occasions. Most recently, following our latest report which included the stock (12/19), CBIS touched its 52-wk low at .028, and has been really heating up since that time, reaching a high of .04 yesterday, good for a rebound of 43%

The stock closed at the high-of-day on more than 5.5x its 3mo. average volume, which certainly qualifies CBIS as a potential momentum play.

Here are some of the other stocks we’ve been continuously tracking in the cannabis industry:

Hemp, Inc. HEMP,

Medical Marijuana, Inc. MJNA

Growlife, Inc. PHOT

Also consider: FITX, GRNH, SKTO, TRTC (Click here to view a past report containing much larger list of marijuana-related stocks)

We want to have the sector as a whole on watch as these plays are heating up, and seem poised to begin the New Year on a strong note. That fact, in concert with all of the recent progress that marijuana has made on both legislative and social levels, has us thinking that 2014 could be a landmark year for marijuana related stocks.

We also prepared a video chart presentation on the subject:

Progress Watch Corp. PROW

We first alerted on PROW back on Dec. 20th, at which time the stock saw a low of .0065, and we subsequently followed it to a high of .013. (+100%) After pulling back to .008 the following day, the stock has now surged back to re-test that .013 mark, giving us chances at up to an additional 65% gain.

PROW is likely to remain on our radar and in our reports well into the New Year.

Kandi Technologies Group, Inc. KNDI

KNDI came off of yesterday’s morning report to have a solid session, so we wanted to congratulate anyone who was able to take advantage. The stock saw a daily low of 11.50, followed by the high at 12.79, marking an intraday gain of just over 11% A pretty good move for a stock in that price range, and a nice addition to the significant gains we’ve already seen from KNDI.

Extended Watchlist:
DROP, ONVO, CYTR, IMMU, LIVE, DRYS, FREE, GNK, MDNT(Readers pick, coming off recent 52week lows, thanks to John)

CNDO, FREE, WPCS & Extended Watchlist

Coronado Biosciences, Inc. CNDO

When we last visited CNDO, we made mention of the large gap on the chart that we were looking to see filled. At the time (Dec.12th), we observed prices as low as 1.75. Now two weeks later, we have seen some real strides toward the filling of that gap, with yesterday’s high of 3.09 marking a gain of 77%

The stock has been making higher lows for the past four sessions, and we’ve mentioned that a break of the 50DMA could lead to further gains. Now that it has happened, we are going to be extra vigilant over this play.

We took the liberty of drawing up a video chart on CNDO for your convenience:

As far as options trading is concerned, we are currently eyeballing the 01/18/14 2.50 Calls, which closed at .72 yesterday. A return of the stock to previous levels in the $4-5 range would likely yield multi-bag gains on those contracts.

FreeSeas, Inc. FREE

FREE has been a big winner for us in the recent past. Following our last alert, the stock was trading as low as 1.12. We had previously ridden FREE for gains of more than 400% and after watching it consolidate heavily, we mentioned that chart indicators were signaling the beginning of what we assumed would be another significant run.

Once again, our assumptions proved to be highly accurate. The stock has found its way off its bottom, yesterday reaching as high as 2.40. That marks an opportunity for gains on the order of 114% in just a couple of weeks.

WPCS International, Inc. WPCS

On December 23rd, WPCS appeared in our extended watchlist. It didn’t take long to see a positive move out of this stock; yesterday as it traded from a low of 1.46 to 1.619, it afforded traders the chance at a modest 11% gain.

We really want to keep an eye out for further movement on WPCS, as the stock is gapping up heavily this morning, to the tune of roughly 80% This comes on the heels of yesterday’s news that the company has developed a Bitcoin trading platform to capitalize on the recent digital currency fad.

EXTON, PA, Dec 26, 2013 (Marketwired via COMTEX) — WPCS International Incorporated (NASDAQ: WPCS), (“WPCS” or the “Company”), today announced that its wholly-owned subsidiary, BTX Trader, LLC (“BTX Trader” or “BTX”) has released a beta version of its Windows-based trading platform that is now available to the public at www.btxtrader.com. BTX Trader, which was recently acquired by WPCS, is the first trading platform to enable Bitcoin traders and industry researchers to access market data and execute orders on the five most popular Bitcoin exchanges in a single application.

Extended Watchlist:
PROW, DRYS, GNK, NEWL, EGLE, RSOL, SHIP