My first earnings short-squeeze trade idea is medical equipment and supplies player Hansen Medical (HNSN), which is set to release its numbers on Wednesday after the market close. Wall Street analysts, on average, expect Hansen Medical to report revenue of $6.09 million on a loss of 17 cents share.
The current short interest as a percentage of the float for Hansen Medical is extremely high at 21.9%. That means that out of the 34.57 million shares in the tradable float, 8.66 million shares are sold short by the bears. This stock has a monster short interest and a very low float. A strong earnings report and bullish guidance should easily set this stock off on a large short squeeze.From a technical perspective, HNSN is currently trading above both its 50-day and 200-day moving averages, which is bullish. That said, the stock did move below its 200-day moving average briefly today but has since rebounded back above it. Shares of HNSN have making lower highs and lower lows for the past few weeks, which is bearish price action. If you're bullish on HNSN, I would wait until after its report and look for long-biased trades if this stock breaks out above $3.83 to $4.03 a share with high volume. Look for volume that's near or well above its three-month average action of 544,015 shares. If we get that action, then look for HNSN to make a run at its next significant overhead resistance levels of $4.46 to $5 a share. I would simply avoid this stock from the long side if HNSN fails to breakout post-earnings, and then moves back below its 200-day at $3.15 and its 50-day at $2.93 with heavy volume. I also featured Hansen recently in "8 Stocks Under $10 Moving Higher."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV