Warrant Watchlist 4/24/19

Markets were slightly lower today, but stocks showed little signs of weakness as they hovered around historic highs. Facebook (FB) was trading around 9 points higher after announcing earnings after the close.

Oil had been trending higher before President Trump announced the waivers allowing countries to skirt U.S. sanctions on Iranian oil would not be renewed. At a minimum this should put a floor under oil prices, and will more likely keep the oil rally going.

This puts oil and oil related warrants squarely in our crosshairs.

In addition we’re looking at a few earnings and technical plays that show promise here.

Rosehill Resources (ROSE, ROSEW)

Rosehill warrants came alive the past few days after trading flat for the past several months. Rosehill is a SPAC formed from KLR Energy Acquisition Corp.

Rosehill is an oil and natural gas driller operating in the Permian Basin. The warrants are exercisable at $11.50 for one share of ROSE common stock. The warrants offer good leverage here if the stock continues higher.

The warrants don’t expire until April of 2022.

Magnolia Oil and Gas (MGY, MGY.WS)

Magnolia is another oil driller operating in the Eagle Ford Shale and Austin Chalk formation in Texas.

This one is another former SPAC once trading under the name TPG Pace Energy. The Magnolia warrants, MGY.WS, offer a little less leverage than the Rosehill warrants, but are already in the money.

If shares of the common can trade and hold above $14 there is little resistance for the stock to trade back to 2018 highs just above $15. This would provide a nice percentage gain in the warrants.

The warrants are exercisable at $11.50 for one share of MGY and expire in July of 2023.

Blink Charging (BLNK, BLNKW)

Blink is a non-oil play on the rising price of oil (I’ve mentioned this one before in an earlier post). The company makes charging stations for electric automobiles.

With Elon Musk announcing 1 million driverless taxis by next year (whether you believe him or not), and rising oil prices, Blink now has more than one catalyst pushing it higher.

Technically the stock is trading in an ascending triangle pattern, and I’m looking for it to break resistance and trade above the $3.24 level where it closed today.

The warrants are exercisable at $4.25 for one share of BLNK and expire in February of 2023. I picked up a few warrants today at $1.

IMAC Holdings (IMAC, IMACW)

IMAC may be completing a flag pattern here after drifting lower from a big move higher on March 27th. I’d like to see the stock trade back above $4.61 before initiating any position in the warrants.

IMAC operates a chain of chiropractic and minimally invasive medical clinics. The company focuses on back, knee, joint and soft tissue pain and strains.

The warrants are exercisable at $5.00 for one share of IMAC and expire in February 2024.

Limbach Holdings (LMB, LMBHW)

Limbach jumped higher after a good earnings release April 16th. The stock has now closed a gap created by an earlier negative earnings release in November of last year.

Limbach provides HVAC services in the form of contracts for current units as well as construction for new buildings.

The warrants are exercisable at $11.50 for one share of LMB and expire in July of 2021. I’ll be looking at this one to see if it moves higher after digesting the current earnings move.

New Post. If you haven’t already, check out my new post on how important it can be to your returns to identify issues, or catalysts, that may move a stock or warrant.