NEW BULLISH Plays

PRD Energy - PREGF - close: 1.01 change: +0.13

Stop Loss: TBD
Target(s): TBD
Current Gain/Loss: unopened

Entry on September 27 at $--.--
Listed on September 26, 2013
Time Frame: 6 to 9 weeks
Average Daily Volume = 130 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
It's been a long time since we listed a "lottery-ticket" style of trade. Tonight's new candidate definitely fits that description. When you buy a lottery ticket, you spend a dollar (maybe depending on where you live) and if you win, you can win big. If you don't win, you throw the ticket away. That's sort of the strategy for this speculative trade.

We almost never list a stock that trades on the "pink sheets" (i.e. the Over the Counter Bulletin Board exchange). Stocks that trade OTC tend to have very low volume and can be extremely volatile. That's another reason we consider this a higher-risk trade.

I will also point out that we didn't find this trade. The folks at Casey Research did. I normally don't follow Casey Research but when John Mauldin, of Mauldin Economics, emailed his 1.4 million readers about this particular trading idea we noticed.

Here's the quick summary. Casey Research claims they have found a small oil company that could be on the verge of tapping the next "Bakken" field. The Bakken is the huge field in N. America that is estimated will produce between 7 and 20 billion barrels of oil or oil equivalent. So the company in question is supposed to drill their first well in the next few weeks in the next "Bakken". If it's a successful well the stock could soar. If the first well isn't successful, well, I told you this was speculative. If Mauldin is emailing over one million investors about this trading idea the stock could rise anyway as other investors speculate whether the company's first well is successful or not.

It looks like the company in question is PRD Energy Inc. The OTCBB stock symbol is PREGF. I am suggesting small bullish positions at the open tomorrow morning. I'm not listing a stop loss and we are not listing an initial target. Both will be determined later.

This trade isn't for everybody but it did look interesting. We wanted to share it with our readers.

*launch positions at the open tomorrow*

Suggested Position: buy PREGF stock @ (the open)

Annotated chart:

Weekly chart:



Tesaro, Inc. - TSRO - close: 41.02 change: +1.80

Stop Loss: 39.25
Target(s): 47.50
Current Gain/Loss: unopened

Entry on September -- at $--.--
Listed on September 26, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 120 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
TSRO is an oncology-focused biotech firm. Biotech stocks have been a bright spot in the market of late. The recent market pullback hit shares of TSRO harder than its peers but traders are buying the dip near support in the $40 area. We want to take advantage of the correction and buy the bounce.

We do consider this an aggressive, higher-risk trade. I am suggesting investors use small positions to limit their risk. Tonight we're listing a suggested entry trigger at $41.50. If triggered our target is $47.50. More aggressive traders could aim higher.

Trigger @ 41.50 *small positions*

Suggested Position: buy TSRO stock @ (trigger)

Annotated chart: