Blue Horseshoe Stocks: APP, CERS Recaps & More

American Apparel Inc. APP

It appears as if we brought APP back into the discussion yesterday at an opportune time, as the stock enjoyed a healthy intraday move on more than twice the 3-month average trading volume.

After briefly seeing a low of .63 the stock gradually built its way up to an afternoon high of .69, an increase of roughly 10%, and in the premarket this morning APP has already traded as high as .78. That pushes the overnight increase on APP to 24%

Yesterday we mentioned that breaking of the 200DMA of .74 was a key event that needed to take place and we’ve seen that happen this morning, so APP is certainly going to remain high on our watchlists as we head into week’s end.

Cerus Corp. CERS

CERS was included in yesterday’s extended watchlist, and made a solid move during the day’s session. From a low of 5.26 the stock made a run at a high of 5.94, a modest yet notable 13% increase.

It came on the heels of the announcement that the company had received the green light from the FDA on its product that limits the risk of infection-transmission in blood transfusions. We always like a good FDA-approval play so we will definitely be monitoring this play in coming sessions.

CONCORD, Calif.–(BUSINESS WIRE)–Cerus Corporation (CERS) today announced that the U.S. Food and Drug Administration (FDA) has approved the INTERCEPT Blood System for plasma. The INTERCEPT plasma system is approved for ex vivo preparation of plasma in order to reduce the risk of transfusion-transmitted infection (TTI) when treating patients requiring therapeutic plasma transfusion. >> FULL PR

Eco Science Solutions, Inc. ESSI

We’ve still got ESSI on our radars, and wanted to remind our readers of this even as the stock has been trading in a tight channel between .20-.25 since we last took a look at it. The reason we still find ESSI attractive is that it boasts a tight share structure, and while we haven’t seen much in the way of volume, should that change, even the slightest amount of buying pressure could send ESSI flying.

From a business perspective, we’re also interested in the technology the company is working on, its innovative re-imagining on classic spark plug design. So despite not seeing much short-term activity, ESSI still has many of the hallmarks of a high-potential play that we’ll want to watch closely into the New Year.

We’ve drawn up a video on the current standing of the ESSI Chart, so take a look at that by clicking the graphic below:

If you missed our initial report on ESSI and its spark plug technology, go ahead and take a look now: ESSI Report

Extended Watchlist:
RAD, JNUG, EXXI, FRO, RGSE, AGEN, NQ, THCZ

Blue Horseshoe Stocks: UTRM, MLCG, ROTH & More

United Treatment Centers, Inc. UTRM

Another pick, another great day of gains! UTRM became the latest new cannabis-related stock to make its mark. We were on top of it, placing it on high alert in yesterday morning’s report and reaping profits on the way up, employing the tried-and-true strategy of selling into strength.

It really was quite a session; extremely high liquidity (traded more than 642 million shares) allowed many to profit, as UTRM roared up from .0085 to hit a high of day at .0146 (a gain of 72%), just before closing two ticks below at .0144.

This onslaught of activity is going to have us paying attention to UTRM for quite some time. It’s possible that the company could produce a PR this week regarding the official launch of its new website on Thursday.

It’s also worth mentioning that UTRM is currently receiving a 100% “Buy Rating” on BARCHART.COM.

ML Capital Group, Inc. MLCG

MLCG continued to be one of our most productive recent points of interest yesterday. If you recall, we caught this play at the beginning of this month, and have seen a low of .04 as recently as the 12th which was followed by double-bag gains.

Yesterday, the stock posted another bang-up session, running 85% from a low of .10 all the way up to .185 on substantial volume.

From its recent low following our initial alert, MLCG has now risen as much 363% in just under two trading weeks.

PharmaRoth Labs, Inc. ROTH

ROTH is a momentum play that we’ve been keeping our eye on over the past few days. Currently the chart is exhibiting the telltale signs of a bullish trend, as you can see below. The RSI has punched into the power zone for the third time this month, there has been a recent golden cross, and the MACD is diverging.

We’ll be watching for a possible continuation of the recent trends this mid-week. Like UTRM, BARCHART.COM is also giving ROTH a 100% “Buy Rating” at the moment.

Petroleo Brasiliero SA Petrobras (PBR)- Options

After the $11 PBR Calls made a nice triple-digit move for us on Friday, we continue to take advantage of the stock’s recovery. The 05/02 $12 Calls, also mentioned Friday, that we re-tagged in yesterday’s report are now up considerably, and could be on the way to making similar gains.

Extended Watchlist:
BGMD (News Out), VTNR, RGSE, ARIA, EXEL

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