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 Earnings Short-Squeeze Trades

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

Get Adobe Flash player


My first earnings short-squeeze idea is electronic instrument and controls player Plexus (PLXS - Get Report), which is set to report its numbers on Wednesday after the close. Wall Street analysts, on average, expect Plexus to report earnings of 48 cents per share on revenue of $527.80 million.

If you're looking for a stock that's been uptrending very strong ahead of its quarter, then take a strong look at shares of Plexus. This stock has ramped up big from its October low of $21.06 to its current price of just over $32.50 a share. This stock is up over 19% so far in 2012, and it now is trading right below some key breakout levels.

The current short interest as a percentage of the float for Plexus is 5%. That means that out of the 34.21 million shares in the tradable float, 1.72 million shares are sold short by the bears. This isn't a huge short interest, but the float is small so it's more than enough to spark a big short-squeeze if the bulls get the news they're looking for.

From a technical standpoint, PLXS is currently trading below above both its 50-day and 200-day moving averages, which is bullish. The strong run in this stock during the last few months has now put it in range to trigger a big breakout trade.

f you're bullish on PLXS, I would look to get long after they report their results if the stock trades back above some near-term overhead resistance at $33.79 with volume, and then above $34 to $35.36 a share. Look for volume that's tracking in close to or above its three-month average of 308,841 shares. If those levels get taken out post-earnings with volume, then look for PLXS to trade back toward $38 to $39 a share.

I would only get short or avoid any long trades in PLXS if after they have released their results the stock fails to takes out $33.79 with volume. If that level holds as stiff resistance and you get short, I would then add to any positions if it takes out its 200-day moving average of $29.58 with volume. Target a drop back toward its 50-day moving average of $27.37, or possibly lower if the bears destroy this stock post-earnings.
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
CREE $22.81 -0.87%
DGII $10.25 -0.29%
EZPW $4.70 1.30%
FAST $46.45 -0.21%
GMT $43.95 -0.02%


Chart of I:DJI
DOW 17,612.02 -48.69 -0.28%
S&P 500 2,040.59 -10.04 -0.49%
NASDAQ 4,687.4980 -29.5960 -0.63%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs