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Another potential earnings short-squeeze trade is semiconductor player
FSI International(FSII), which is set to release its numbers on Tuesday after the market close. This company designs, manufactures, markets and supports equipment used in the fabrication of microelectronics, such as advanced semiconductor devices. Wall Street analysts, on average, expect FSI International to report revenue of $50.40 million on earnings of 21 cents per share.
If you're looking for a heavily shorted small-cap stock that's trending very strong heading into its quarter, then make sure to check out shares of FSI International. This stock is up over 25% during the last six months, and it's currently trading about $1.40 off its
52-week high of $5.44 a share.
The current short interest as a percentage of the float for FSI International is notable at 7.8%. That means that out of the 34.61 million shares in the tradable float, 3.05 million shares are sold short by the bears. This stock has a decent short interest and a relatively low float. If FSI International can deliver the numbers the bulls are looking for, then this stock could see a sizeable short-squeeze post-earnings.
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From a technical perspective, FSII is currently trading above its 200-day moving average and right below its 50-day
moving average, which is neutral trendwise. This stock topped out in May at around $5.12 to $5.14 a share. After forming that top, shares of FSII have traded down to a recent low of $2.98 a share. Since hitting that low, FSII have rebounded and moved back above its 200-day moving average.
If you're bullish on FSII, I would wait until after it reports earnings and look for long-biased trades if this stock can manage to trigger a breakout back above its 50-day at $4.16, and above some near-term overhead resistance at $4.63 a share with high-volume. Look for volume on that move that hits near or above its three-month average action of 616,285 shares. If we get that action, then look for FSII to re-test and possibly take out its next significant overhead resistance levels at $5.14 to $5.44 a share.
I would simply avoid FSII or look for short-biased trades if after earnings this stock fails to maintain a trend back above its 50-day moving average at $4.15 with strong upside volume flows.