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Another earnings short-squeeze candidate is semiconductor equipment maker
Amtech Systems(ASYS - Get Report), which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect Amtech Systems to report revenue of $54.29 million on earnings of 29 cents per share.
This stock is trading right near some previous support levels at $9.40 to $9.60 a share as we head into the quarter. If the stock can hold above those levels and above its 50-day moving average of $9.75 after earnings, then shares could spike and break out.
The current short interest as a percentage of the float for Amtech Systems stands at 6.9%. That means that out of the 9 million shares in the tradable float, 624,182 shares are sold short by the bears. This stock has a decent short interest and a very small float. Any good earnings news could set off a solid short squeeze for the bulls.
>>5 Stocks Under $10 With Big Upside Potential
From a technical standpoint, this stock is currently trading above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock recently dropped big from its July high of $21.65 to a recent low of $7.12 a share. The stock has now started to trade sideways for the past few months between $11.60 and around $8.60 a share. A move outside of that range will set the stock up for its next big trend.
If you're bullish on this stock, I would wait until after earnings are reported and buy the stock once it breaks out above $11.60 on big volume. Look for volume that's tracking in close to or above its three-month average action of 243,500 shares. I would then add to any long position once the stock takes out $14 with volume. That should set up ASYS to fill some of a recent gap down in price from back in August.
I would only get short this stock after earnings are reported if it trades below $9.40 share on heavy volume. I would add to any short position once $8.60 is then taken out, and target a drop back towards that recent low of $7.12.
To see more potential earnings short squeeze plays, including
Zoll Medical(ZOLL) and
E Commerce China Dangdang(DANG), check out the
Earnings Short Squeeze Plays portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.