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.
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