This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Heavily Shorted Stocks to Squeeze the Bears

Comtech Telecomm

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

My first earnings short-squeeze candidate is Comtech Telecomm (CMTL - Get Report), which is set to report its results on Tuesday after the market close. This company designs, develops and markets products, systems and services for communications solutions. Wall Street analysts, on average, expect Comtech to report revenue of $141.53 billion on earnings of 37 cents per share.

Comtech has beaten Wall Street estimates for the last two quarters and is coming off a quarter in which it beat estimates by 8 cents, reporting net income of 47 cents vs. estimates of 39 cents. If Comtech can manage to beat for this quarter and do so by another wide margin, then this stock could easily see a large short squeeze.

The current short interest as a percentage of the float for Comtech sits at around 7.7%. That means that out of the 25.42 million shares in the tradable float, 1.96 million are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 8.3%, or about 150,600 shares.

From a technical standpoint, this stock is just starting to move above both its 50-day and 200-day moving average, which is bullish. The stock has also been printing higher lows and higher highs since the stock bottomed in mid-August at $24.04 a share, which is also bullish.

I would look to buy this stock after they report their earnings if the stock can manage to trigger a breakout above $28.50 to $29 share on solid volume. Look for volume that's tracking in close to or above its three-month average action of 341,200 shares. I would target a run back toward $31 to $32 a share or possibly higher if the bulls manage to spark a short squeeze.

I would only get short this stock after earnings if it drops below $25.60 on heavy volume. Target a drop back towards $24 to $23.30 a share or possibly even lower if the bears knock this down post-earnings. If the stock losses $23.30 after earnings then it could really drop big since the next nearest support level doesn't come into play until around $19.50 a share.

>>Practice your stock trading strategies and win cash in our stock game.
2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
ZZ $2.19 0.00%
ATU $22.69 0.00%
CMTL $18.21 0.00%
JBL $19.91 0.00%
SNX $83.07 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs