Blue Horseshoe Stocks: PBR Options Recap & More

Petroleo Brasileiro SA (Petrobras) PBR – Recap

Yesterday morning, one of the primary focal points our premarket report was a pair of PBR options contracts, the PBR Weekly $14 & 14.50 Calls.

We cited the stock’s volatility and rapid rise over recent relative lows as the reasons for our interest, and despite yet another reversal for the markets in general, we got very solid single-session results for our PBR ideas. The $14’s traded up 95% from .21-.41, while the $14.50’s logged a double-bagger as they ran from  .05-.11, a gain of 120%

PBR is gapping up once again this morning, so we expect these figures to open up even higher. We will then be looking for a possible dip-and-rip scenario.

BioXcel Therapeutics, Inc. BTAI

We mentioned BTAI for the first time in yesterday morning’s extended watchlist, and got a solid first day performance from that stock as well, as it went in the books as the 2nd highest gainer on the Nasdaq for the session.

From a low of 4.00, BTAI went on to hit a high of 5.84, which worked out to a respectable 46% rise that also bucked the overall trend of the day. The move was facilitated by news that the company achieved positive human proof-of-concept data for acute treatment of agitation in patients with Alzheimer’s Disease, and other degenerative neural disorders. (>>View PR)

Extended Watchlist:

PROP, FU, GOGO, AAPL & Extended Watchlist

Propell Technologies Group, Inc.   PROP

Last Wednesday, we began taking a look at PROP.  On Thursday, we mentioned that the stock had a hurdle at the 200DMA of .56 to contend with, and if it failed to break that resistance, we would likely see a pullback. The stock did indeed test that .56-mark, but could not break through to the next level, rendering our prediction accurate. From Wednesday’s low of .44 to yesterday’s high of .57 marks a 30% increase.

We’d like to see PROP hold support above .45 moving forward, and are anxious to hear more news from the company in the future regarding its oil production status. News out on Monday pointed to the company’s proprietary “plasma pulse” treatment increasing the production of one of the company’s oil wells by a significant margin.

HOUSTON, Texas, Oct 14, 2013 (GLOBE NEWSWIRE via COMTEX) — via PRWEB – Propell Technologies is pleased to report 6-month results from the first well that was treated with the company’s proprietary plasma pulse technology in the Tulsa, Oklahoma area.
Cottonwood #9-11 located in Creek County, Oklahoma was drilled to a depth of 2667 feet in December 1967 in the Redfork Sandstone formation with initial production of 35 barrels of oil per day (BOPD). For the several years prior to treatment the well had been approximately a one or two BOPD producer.

The plasma pulse treatment was performed on March 28, 2013. Immediately before treatment the well was barrel tested showing 1.4 barrels of oil per day. Thirty days after the plasma pulse treatment, a barrel test showed Cottonwood #9-11’s production had jumped to 5.5 BOPD where it had held fairly steady with a substantial increase in production.

On October 4, 2013, six months after treatment the well was barrel tested showing a rate of eight (8) BOPD, an increase of 408%. The well was barrel tested again on October 10, 2013 and showed an even higher rate.

Currently BARCHART.COM is giving PROP an 80% “Buy” Rating on Short-Term Indicators.

More Info –

Fab Universal Corp. FU
After providing us with a 28% intraday gain on Monday, FU did actually manage to continue piling on gains Tuesday, before closing out the session slightly in the red. The stock touched 7.83 for a time, which marks an increase of 43% off of the 5.46 bottom we observed on Monday.

This week’s run comes on the heels of a previous consolidation, which resulted from a run spanning a period of a few weeks which took the stock from the $4-range up to 11.48. On the current consolidation, we’d like to see support hold at or above the 50DMA (5.34).

Gogo, Inc. GOGO

GOGO, like FU, is another stock that recently made a significant surge, and is currently in pullback mode. This is an instance where monitoring for a bounce off of the eventual bottom can provide us with the opportunity to make hefty gains on the rebound. The stock has been hunkering down, and building a solid base at the $16-range. Below that we have support at 14.05 (50DMA), and above, resistance sitting at the 20DMA of 17.27.

Apple, Inc. AAPL – Big News

Yesterday, Apple made the announcement that it would be enlisting the help of Burberry’s CEO, Angela Ahrendts, as head of retail operations. This is a development that we will be following closely. Ahrendts is responsible for increasing Burberry’s sales by more than 100% since 2006. This development could mean a serious boost for AAPL over the long term.
Not only does the hiring end a year-long search for a new head of retail operations, but it marks the first time a woman has served on the AAPL Board of Directors.

In other news, Apple earnings are expected on Monday, October 28th, so on the options-trading side of things, we are beginning to monitor the 11/01 $505 & $510 Calls.

Extended Watchlist:

ACYD, PROP & Extended Watchlist

American Community Development Group, Inc.  ACYD
ACYD appears on our radar today as a full-bore breakout play, having increased over 3800% in less than a month. In June we tagged this stock as one to watch, and then again on 09/23. This illustrates why it is of vital importance to stay tuned to not only our daily focal points, but our extended watchlists as well.

At this point, ACYD has burst into the stratosphere, making entry from these levels extremely risky, if not inadvisable. We are not in the business of chasing extreme runners like this one, so what we’re going to do is monitor this play for a pullback and subsequent bounce.

It wouldn’t be the first time we’ve reaped profits from a stock in the same situation, if you recall BRND as an example. Over the summer, we timed the pullback after a series of tweets by Dennis Rodman caused the stock to spike violently over a very short period. On the heels of a gain in excess of more than 700%, that play afforded us a chance at over 80% on the dip-and-rip from .0077-.014.

Propell Technologies Group, Inc.  PROP
Another extended watchlist play, yesterday we placed PROP on watch after noticing it had broken its 50DMA in recent sessions. It turned in a solid intraday performance to the tune of 20%, having traded as low as .44 before hitting a high of .527, and closing strong at .52.

The next key resistance resides at .56, coinciding with the current 200DMA. Just a heads-up: Failure to breach that hurdle at .56 would likely give way to a pullback.

Extended Watchlist: