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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

5 Hated Stocks Set to Soar on Earnings

Stocks in this article: TTWOMRGEOMPIBMRNINCY

Take-Two Interactive

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

Get Adobe Flash player

My first earnings short-squeeze play today is video game maker Take-Two Interactive (TTWO), which is set to report results on Tuesday after the market close. This company is a developer, marketer and publisher of interactive entertainment for consumers worldwide. Wall Street analysts, on average, expect Take-Two Interactive to report revenue of $254.18 million on a loss of 65 cents per share.

During the last quarter, this company missed estimates by 12 cents per share, reporting a loss of 72 cents per share vs. Wall Street estimates of a net loss of 60 cents per share. For the third quarter of the last fiscal year, Take-Two Interactive beat Wall Street estimates by 1 cent.

The current short interest as a percentage of the float for Take-Two Interactive is very high at 14.5%. That means that out of the 76.44 million shares in the tradable float, 12.78 million shares are sold short by the bears. This is a decent short interest on a stock with a relatively low float. Any bullish earnings news out of Take-Two Interactive, and we could see a large short-squeeze develop post-earnings.

>>5 Social Networking Stocks to Sell Now

From a technical perspective, TTWO is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock has been stuck in a nasty downtrend for the last six months, with shares plunging from a high of $16.23 to a recent low of $8.69 a share. During that massive slide lower, shares of TTWO have been consistently making lower highs and lower lows, which is bearish technical price action.

If you're bullish on TTWO, then I would wait until after it reports earnings and look for long-biased trades if this stock can manage to take out its 50-day moving average of $10.07 a share, and some more overhead resistance at $10.35 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 2.1 million shares. If we get that move, then TTWO could spike toward $11.81 to $12.27 a share or possibly even near its 200-day moving average of $13.53 a share.

I would simply avoid TTWO or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops below some major near-term support at $8.69 a share with high volume. If we get that action, then TTWO will enter new 52-week-low territory, which is very bearish price action. Some targets to the downside would be $8 to $7 a share if the bears hammer this stock post-earnings.

Take Two shows up on a recent list of 5 Oversold Stocks Ready for a Bounce Higher.

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 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

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