An earnings short-squeeze idea in the software and programming complex is on-demand employee spend management solutions provider Concur Technologies (CNQR), which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect Concur Technologies to report revenue of $94.65 million on earnings of 24 cents per share.
This stock is setting up technically to break out if the company can report solid earnings and bullish guidance that the bulls approve of. Any post-earnings breakout could set this name up to challenge its all-time high of $58.19.The current short interest as a percentage of the float for Concur Technologies is an extremely large 16%. That means that out of the 52.04 million shares in the tradable float, 7.08 million are sold short by the bears. This is a very large short interest, so if you any strength in the stock off of solid earnings and guidance could spark a giant short squeeze. From a technical standpoint, this equity is currently trading above its 50-day and 200-day moving averages, which is bullish. This stock dropped big off its July high of $52.71 to a recent low of $34.30. Since hitting that low, the stock has been doing nothing but trending higher for the past two months. During that trend, shares of CNQR have been making higher highs and higher lows, which is bullish. The way I would play this name is to wait until after it report its numbers and buy the stock if it breaks out above some past overhead resistance at $49.83 on big volume. Look for volume that's tracking in close to or above its three-month average action of 599,338 shares. If that level is taken out, I would then add to any long position once it trades above $52.71 with volume. >>Stocks Rising on Unusual Volume I would consider shorting this stock after earnings only if it drops below its 200-day moving average of $47.26 on heavy volume. I would then add to any short position if near-term support at $46.86 is taken out with volume. I would target a drop back towards its 50-day moving average of $41.80, or possibly even lower if the bears smack this stock down post-earnings.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV