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
TheStreet Open House

5 Earnings Stocks Poised to Pop

Saba Software

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

Get Adobe Flash player

My first earnings short-squeeze trade candidate is software and programming player Saba Software (SABA), which is set to release its numbers on Thursday after the market close. This company provides a class of people systems that combine people learning, people performance, and people collaboration solutions. Wall Street analysts, on average, expect Saba Software to report revenue of $33.27 million on a loss of 4 cents share.

If you're looking for a small-cap stock that's uptrending strong heading into its earnings report, then make sure to check out shares of Saba Software. This stock is up a whopping 60% so far in 2012, and shares are trading within shouting range of its 52-week high of $13.11.

The current short interest as a percentage of the float for Saba Software is notable at 6.4%. That means that out of the 28.18 million shares in the tradable float, 1.64 million shares are sold short by the bears. The bears have also been increasing their short positions from the last reporting period by 27%, or by about 350,000 shares.

>>6 Tech Stocks That Rate Better Than Apple

From a technical perspective, SABA is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been on a tear uptrending strong for the last six months from $5.07 in October towards its current price of just under $13 a share. During that uptrend, SABA has consistently made higher lows and higher highs, which is bullish price action.

If you're bullish on SABA, I would wait until after its report and look for long-biased trades if this stock breaks out above some near-term overheard resistance at $13.11 or if it a makes a new 52-week high with volume. Look for volume that's near or well above its three-month average action of 290,694 shares. If we get that action, then look for this stock to quickly hit $15 a share or higher post-earnings.

I would simply avoid SABA or look for short biased trades if after earnings this stock fails to break out over $13.11 and make new 52-week highs. Target a drop back towards its 50-day moving average of $11.36 or lower if you see high-volume sellers come into this name post-earnings.

2 of 6

Select the service that is right for you!

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 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7870 -13.6380 -0.30%

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