This Day On The Street
Continue to site right-arrow
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 Ready to Soar on Bullish Earnings

Stocks in this article: FRAN GEOY PSUN HOGS AFFY


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

Get Adobe Flash player

Another earnings short-squeeze candidate is Affymax (AFFY), which is set to release numbers on Wednesday after the market close. This is a biopharmaceutical company developing drugs to improve the treatment of serious and often life-threatening conditions.

Recently, Citi Investment Research said that there is rising interest among dialysis clinics about its anemia treatment, which is being reviewed by regulators. As we approach its earnings report, this stock is trending very strong and trading about one point off its 52-week high of $11.50.

The current short interest as a percentage of the float for Affymax is notable at 9.1%. That means that out of the 30.36 million shares in the tradable float, 3.16 million shares are sold short by the bears. This is a decent short interest for a stock with a very low float. Any good news could easily spark a sizable short-squeeze.

From a technical perspective, AFFY is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been basing, or trading sideways for the past few months between $11.50 and around $10 a share. A move outside of that sideways pattern should set this stock up for its next big trend.

>>8 Stocks Rising on Monster Volume

If you're bullish on AFFY, I would look for long-biased trades after its earnings report if the stock manages to break out above $11.50 a share with high-volume. Look for volume on that move that's close to or well above its three-month average action of 1,249,940 shares. If we get that high-volume breakout, then look for AFFY to spike large since it will enter a major gap down zone from back in 2010.

I would avoid AFFY or look for short-biased trades if after earnings the stock fails to break out and then drops below some near-term support at $10 a share with volume. I would target a drop back towards its 50-day moving average of $8.99 or possibly lower if the bears hammer this post-earnings.

5 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!


DOW 18,086.30 +56.09 0.31%
S&P 500 2,092.06 +10.18 0.49%
NASDAQ 4,813.3650 +39.8930 0.84%

Brokerage Partners

Rates from

  • 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