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 Earnings Stocks Poised to Pop

Spectrum Pharmaceuticals

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

Get Adobe Flash player

One earnings short-squeeze play in the biotechnology and drugs complex is Spectrum Pharmaceuticals (SPPI), which is set to release numbers on Thursday before the market open. This company is engaged in developing and commercializing therapies with a focus primarily in the areas of hematology-oncology and urology. Wall Street analysts, on average, expect Spectrum Pharmaceuticals to report revenue of $52.73 million on earning of 31 cents per share.

If you're looking for a heavily shorted stock that's trading within range of a potential breakout post-earnings, then make sure to take a close look at shares of Spectrum Pharmaceuticals. This stock has been uptrending strong heading into the quarter since shares are just two points off its 52-week high of $16 a share.

The current short interest as a percentage of the float for Spectrum Pharmaceuticals is extremely high at 29%. That means that out of the 49.35 million shares in the tradable float, 15.79 million are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 15.7%, or by about 2.14 million shares.

>>5 Biotech Stocks for 2012

From a technical perspective, SPPI is currently trading above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has been trading sideways for the past month and change between $16 on the upside and around $13 on the downside. A move outside of that range post-earnings should set this stock up for its next big trend.

If you're bullish on SPPI, wait until after earnings and look for long biased trades if the stock breaks out above its 50-day moving average of $14.53 and above some near-term overhead resistance at $14.85 a share with high-volume. Look for volume that's tracking in close to or above its three-month average volume of 1.6 million shares. If we get that action, I would look for SPPI to re-test $16 and potentially take that level out if the bulls gain full control of this stock post-earnings.

I would avoid any long trades or look for short biased trades in SPPI if after earnings this stock fails to move back above its 50-day moving average of $14.53 with strong volume. If we get that action, then SPPI could easily selloff back towards that near-term support at $13 a share, or possibly much lower if the bears whack this down post-earnings.

4 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 16,880.36 -31.75 -0.19%
S&P 500 1,970.07 +0.12 0.01%
NASDAQ 4,462.9020 +20.2040 0.45%

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