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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Hated Stocks Set to Soar on Earnings

Stocks in this article: TRIP REGN DDD WRLD SYNC

Synacor

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

Get Adobe Flash player

My final earnings short-squeeze play today is computer services player Synacor (SYNC), which is set to release numbers on Wednesday after the market close. This company is a provider of solutions for delivery of online content and services. Wall Street analysts, on average, expect Synacor to report revenue of $30.68 million on earnings of 4 cents per share.

This stock has been uptrending extremely strong as we approach its earnings report this week, with shares up over 150% so far in 2012. Despite that strong uptrend, shares of Synacor have recently pulled back off its 52-week high of $18 a share to its current price of around $12.80 a share.

The current short interest as a percentage of the float for Synacor is extremely high at 29.5%. That means that out of the 7.91 million shares in the tradable float, 2.96 million are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 5.8%, or by about 163,000 shares. If the bear are caught learning too hard into this quarter, and Synacor delivers the news the bulls are looking for, then we could get a monster short-squeeze post-earnings.

From a technical perspective, SYNC is currently trading right above its 50-day moving average, which is bullish. This stock has been on a tear for the last five months, with shares skyrocketing from its low of $4.75 to its recent high of $18 a share. During that move, shares of SYNC have consistently made higher lows and higher highs, which is bullish technical price action. That said, this stock recently moved back below its 50-day moving average of $12.82 with heavy volume and hit a near-term low of $10.86 a share.

If you're bullish on SYNC, then I would wait until after it reports earnings and look for long-biased trades if this stock manages to maintain a trend above its 50-day moving average of $12.82 a share with strong upside volume flows. Look for volume that registers near or above its three-month average action of 1,174,910 shares. If we get that move, then SYNC will have a great chance of re-testing and possibly taking out its next major overhead resistance levels at $15 to $18 a share.

I would simply avoid SYNC or look for short-biased trades if this stock fails to hold a trend above its 50-day, and then drops below some near-term support at $12 a share with heavy volume. If we get that action, then look for SYNC to re-test and possibly take out its next major support level at $10.86 a share 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.

RELATED LINKS:



Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.
6 of 6

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!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

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