This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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!

4 Stocks Set to Soar on Earnings Reports

Stocks in this article: MIND ISCA AYI PSMT

Mitcham Industries

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

Get Adobe Flash player

My first earnings short-squeeze candidate today is oil well services and equipment player Mitcham Industries (MIND), which is set to report its numbers on Tuesday after the market close. This company, through its subsidiaries, engages in the leasing, manufacture, and sale of seismic equipment to the oil and gas industry worldwide. Wall Street analysts, on average, expect Mitcham Industries to report revenues of $31.07 million on earnings of 57 cents per share.

If you're looking for a strong-trending small-cap stock heading into its earnings report, then make sure to check out shares of Mitcham Industries. During the last six months, this stock has run-up from $10.69 to its current price of $23.49 a share. As we get close to its quarterly earnings report, shares of Mitcham are trading around four points off its 52-week high of $26.76.

The current short interest as a percentage of the float for Mitcham Industries stands at 3.8%. That means that out of the 11.70 million shares in the tradable float, 449,098 shares are sold short by the bears. This isn't a huge short interest, but since the float is so small it's more than enough to spark a sizeable short squeeze if Mitcham can report solid numbers and bullish guidance.

From a technical perspective, MIND is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock just started to move back above its 50-day moving average of $22.79 on Monday with decent volume. Shares of MIND have been trading range-bound for the past month, between $24 on the upside and $20.30 on the downside. A move outside of that range post-earnings should set this stock up for its next major trend.

If you're bullish on MIND, I would look for long-biased trades following its report if it manages to break out above some near-term overhead resistance at $23.50 to $24 a share with high-volume. Look for volume on that move that's near or well above its three-month average action of 228,211 shares. If we get that action, then I would look for this stock to re-test its 52-week high of $26.76 a share or possibly trend higher if the bulls gain full control post-earnings.

I would avoid MIND or look for short-biased trades if after earnings the stock fails to take out $24 and then drops back below that key support at $20.30 a share with high volume. If we get that action, I would target a drop back toward its 200-day moving average of $18.11 a share or possibly lower if the bears hammer this down post-earnings.

Mitcham shows up on a list of 5 Small-Cap Opportunities in the Oil & Gas Sector.

2 of 5

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!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

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