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

4 Stocks Set to Soar on Earnings Reports

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

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 17,042.90 -28.32 -0.17%
S&P 500 1,972.29 -5.51 -0.28%
NASDAQ 4,493.39 -12.4620 -0.28%

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