My final earnings short-squeeze trade idea today is biotechnology and drugs player PDL BioPharma (PDLI), which is set to release numbers on Friday after the market close. This company is engaged in the management of antibody humanization patents and royalty assets, which consist of its Queen et al. patents and license agreements with various biotechnology and pharmaceutical companies. Wall Street analysts, on average, expect PDL BioPharma to report revenue of $118.54 million on earnings of 46 cents per share.
If you're looking for a strong trending heavily-shorted biotech stock heading into its earnings report, then make sure to check out shares of PDL BioPharma. This stock has trended higher by over 13% during the last three months, and the stock is currently hitting new 52-week highs as I pen this. The current short interest as a percentage of the float for PDL BioPharma is rather high at 11.4%. That means that out of the 128.46 million shares in the tradable float, 15.86 million are sold short by the bears.>>22 Biopharma Stocks With Breakout Potential in 2012 From a technical perspective, PDLI is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong during the last six months, with shares rising from a low of $5.87 to today's intraday day high so far of $6.85 a share. During that uptrend, shares of PDLI have been making higher lows and higher highs, which is bullish technical price action. If you're bullish on PDLI, then I would wait until after they report and look for long-biased trades if this stock manages to print a new 52-week high with heavy volume. Look for volume on that move that registers near or above its three-month average action of 1,620,590 shares. If we get that move, then PDLI could easily continue its uptrend towards $8 to $10 a share if the bulls gain complete control of this stock post-earnings. I would simply avoid PDLI or look for short-biased trades if it fails to print a new 52-week high and then moves back below some near-term support at $6.60 to $6.50 a share with heavy volume. If we get that action, then PDLI will setup to re-test and possibly take out its 50-day moving average of $6.38 a share if the bears annihilate this sock post-earnings. To see more potential earnings short squeeze plays, check out the Earnings Short Squeeze Plays portfolio on Stockpickr. -- Written by Roberto Pedone in Winderemere, Fla.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV