An earnings short-squeeze trade candidate is software and programming player Boingo Wireless (WIFI), which is set to release numbers on Thursday after the market close. This company provides mobile Internet through Wi-Fi networks globally. Wall Street analysts, on average, expect Boingo Wireless to report revenue of $25.14 million on earnings of 6 cents per share.
If you're looking for a small-cap stock that's very close to triggering a major breakout as we head closer to its earnings report, then make sure to take a strong look at shares of Boingo Wireless.>>5 Stocks Poised for Breakouts The current short interest as a percentage of the float for Boingo Wireless is extremely high at 6.7%. That means that out of the 11.44 million shares in the tradable float, 1.20 million are sold short by the bears. This is a decent short interest and very low float stock, so if the company can deliver strong earnings and bullish forward guidance it could easily see a massive short-squeeze. From a technical perspective, WIFI is currently trading above its 50-day moving average, which is bullish. This stock recently bounced off its 50-day moving average with strong volume from $8.41 to its current price of just above $9.40 a share. This strong bounce has now pushed the stock within range of breaking out as we head into the quarter. If you're bullish on WIFI, I would look for long-biased trades after they report if the stock manages to break out above $9.45 to $9.88 with high-volume. Look for volume that's tracking in close to or above its three-month average action of 108,473 shares. If we get that action, I would look for WIFI to trend back towards its next significant overhead resistance levels at $10.95 to $12 a share. I would simply avoid any long-biased trades in WIFI if this stock fails to move above those breakout levels mentioned above 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