This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Set to Soar off Bullish Earnings

Stocks in this article: RFMD AMD YHOO SLAB MOLX

Advanced Micro Devices

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

Get Adobe Flash player

Another potential earnings short-squeeze play is Advanced Micro Devices (AMD), which is set to report results on Tuesday after the market close. This is a global semiconductor company. Wall Street analysts, on average, expect Advanced Micro devices to report revenue of $1.72 billion on earnings of 16 cents per share.

Wall Street is looking for a decent quarter out of Advanced Micro Devices this week, since estimates are for 16 cents per share, which is up from 14 cents per share a year-ago. Over the last four quarters, revenue as trended higher by 0.6% on average year over year. During the most recent quarter, the company registered its best revenue gains when it increased 4.4% from the year-ago.

The current short interest as a percentage of the float for Advanced Micro Devices is extremely high at 15.1%. That means that out of the 588.50 million shares in the tradable float, 89.05 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 3.2%, or by about 2.76 million shares.

From a technical standpoint, AMD is currently trading right at its 200-day moving average and above its 50-day moving average, which is neutral trendwise. This stock recently triggered a big breakout trade once it moved above some past overhead resistance at $6 to $6.05 a share on big volume. In fact, volume for the past five trading sessions has been expanding dramatically to the upside.

If you're bullish on AMD, I would wait until after it report its results and buy the stock once it moves back above its 200-day moving average of $6.60 on high-volume. Look for volume that's tracking in close to or above its three-month average action of 15.9 million shares. If we get that move, I would target a move back towards its next significant overhead resistance levels at $7.44 to $7.87 a share, or possibly much higher.

I would avoid any long trades or short AMD after their report if the stock fails to take out the 200-day moving average of $6.60 with volume. If that level holds as stiff resistance, then I would look for AMD to trade lower back towards its 50-day moving average of $5.54.

AMD is one of Scott Rothbort's " 11 Worst-Run Companies of 2011."

3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs