XNRG came out of the gate strong yesterday and touched .011. It fought to hold support, dipping as low as .0077 before returning to .0095 (+24%), but ultimately pulled back to .0055 in the late afternoon. The stock did however manage to regain much of that dip, closing at .0083, a 51% increase off of the bottom.
The volume and trading on XNRG stayed consistent with the prior day’s activity. We saw some bounces that made quick-strike gains possible, so we want to be on the lookout for similar activity today. Currently .0055 is the new support level, and we are still on the lookout for several chart indicators to ripen, as we pointed out yesterday.
Form 4 Watchlist
When conducting our various daily scans for promising plays, we try to look for any indications that might give us an edge. One of the things we check for periodically, is insider buying activity, especially when the purchase price exceeds the current market value of the stock. So after conducting a thorough search for Form 4 filings, we’ve come up with an Insider Buying Watchlist:
NBS, ETRM, EVC, GLDD, CPSS, GGS, JRN, USU, RWC, IDRA, GTE, WELX,
Central European Media Enterprises Ltd. CETV
Also popping up on our Form 4 scan, was something of great interest in CETV, a media and entertainment company operating broadcasting businesses in six Central and Eastern European markets. On Wednesday, a block of shares equal to $74.7M was purchased by the company’s largest shareholder of record, none other than Time Warner. Further details of the purchase can be found in the corresponding press release below. This developing story is of extreme interest to us, and we will be watching CETV like a hawk in coming weeks, ready to pounce on any opportunities it may provide.
HAMILTON, Bermuda, May 03, 2013 (GLOBE NEWSWIRE via COMTEX) — Central European Media Enterprises Ltd. (“CME”) (Nasdaq:CETV) (Prague Stock Exchange:CETV) announced today the pricing of an underwritten public offering of 54,436,582 shares of its Class A common stock, par value $0.08 per share (“Class A common stock”) at a public offering price of $2.75 per share before underwriting discounts and commissions.
J.P. Morgan Securities LLC is acting as the sole book-running manager for the offering. CME has granted the underwriters an option to purchase from CME up to an additional 5,443,658 shares of Class A common stock. Time Warner Media Holdings B.V. (“Time Warner”), an affiliate of Time Warner Inc. and CME’s largest shareholder, has exercised its preexisting contractual preemptive right and has committed to purchase 49.9% of the number of shares of Class A common stock sold in the offering, subject to certain limitations.
The offering is expected to close on May 8, 2013, subject to customary closing conditions. In addition, subject to the closing of this offering and approval by our shareholders and certain other conditions, CME will sell to Time Warner $200,000,000 of its Series B Convertible Redeemable Preferred Stock, par value $0.08 per share (“Series B Convertible Redeemable Preferred Stock”), a new series of its preferred stock, in a private placement.
CME intends to apply $300,000,000 of the aggregate net proceeds from the public offering and the issuance and sale to Time Warner of shares of Series B Convertible Redeemable Preferred Stock to fund the repurchase or redemption of a portion of CME’s 11.625% senior notes due 2016. CME intends to use the remainder of the net proceeds from the public offering for general corporate purposes.
African Copper Corp. ACCS
This is a high-volume momentum play that has recently awakened and come off of a bottom, so we wanted to include it as well. The stock posted higher highs and higher lows yesterday, making it a prime candidate for our watchlist as we close out the week.
