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My final earnings short-squeeze candidate today is
Sunrise Senior Living(SRZ), which is set to release numbers on Thursday after the market close. This company is a provider of senior living services in the U.S., Canada and the U.K. Wall Street analysts, on average, expect Sunrise Senior Living to report revenues of $337.09 million on a loss of 7 cents per share.
The current short interest as a percentage of the float for Sunrise Senior Living is very high at 14.5%. That means that out of the 39.50 million shares in the tradable float, 8.08 million shares are sold short by the bears.
From a technical perspective, SRZ is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been trading range bound for the past month between $8.38 and around $7.50 a share. A
high-volume move outside of that range should set up the next big trend for SRZ post-earnings.
If you're bullish on SRZ, I would wait until after it reports earnings and consider long-biased trades if the stock triggers a near-term breakout above $8.38 with high-volume. Look for volume that registers near or well above its three-month average volume of 627,023 shares. If we get that action, this stock has a great chance of making a run at $10 to $11 a share post-earnings.
I would look only for short-biased trades or avoid SRZ after earnings if it fails to break out and then trades below some near-term support at $7.50 with volume. If we see that action, I would target a drop back towards its 200-day moving average of $6.91, or down to its next major support zones at $6.50 to $6 a share.
To see more potential earnings short squeeze plays, including
Ascena Retail Group(ASNA), check out the
Earnings Short Squeeze Plays portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.