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
TheStreet Open House

5 Stocks Set to Soar on Bullish Earnings

Stocks in this article: MAKO VSI SZYM SGEN TNGO

Mako Surgical

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

Get Adobe Flash player

My first earnings short-squeeze idea today is medical equipment and supplies player Mako Surgical (MAKO), which is set to release its numbers on Monday after the market close. This is a medical device company that markets its robotic arm solution and orthopedic implants for orthopedic procedures called MAKOplasty. Wall Street analysts, on average, expect Mako Surgical to report revenue of $23.75 million on a loss of 20 cents share.

If you're looking for a heavily-shorted stock that's trending very strong heading into its quarter, then take a look at shares of Mako Surgical. This stock has racked up gains of 55% so far in 2012, and shares are trading just six points off its 52-week high of $45.15 a share.

The current short interest as a percentage of the float for Mako Surgical is extremely high at 35.9%. That means that out of the 37.77 million shares in the tradable float, 11.94 million shares are sold short by the bears. This is a huge short interest on a stock with a very low float. If Mako Surgical beats earnings and raises its forward guidance, then this stock could easily spike big-time post-earnings as the shorts rush to cover some of their bets.

From a technical perspective, Mako is currently trading below its 50-day moving average and above its 200-day moving average, which is neutral trendwise. This stock had been uptrending strong for the past six months, with shares ripping higher from a low of $24.40 to a recent high of $45.15 a share. That said, since hitting $45.15 the stock has run into heavy resistance at around $43 to $42 a share, and it has now dropped back below its 50-day moving average of $40.59 a share.

If you're bullish on MAKO, I would wait until after its report and look for long-biased trades if this stock can manage to trigger a break out back above its 50-day and then above $45.15 a share with high volume. Look for volume on that move that registers close to or well above its three-month average action of 921365 shares. If we get that action, then look for MAKO to tag $50 to $55 a share post-earnings.

I would simply avoid MAKO or look for short-biased trades if after earnings this stock fails to move back above its 50-day, and then drops back below its 200-day moving average of $34.96 a share with heavy volume. Target a drop down to $32 to $28 a share if the bears whack this stock lower post-earnings.

Mako Surgical shows up on a list of 10 Small-Cap Stocks Poised to Rise, History Shows.

2 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!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

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