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 Earnings Short-Squeeze Plays

Stocks in this article: VSICLNEZINFICREE

CLNE Chart CLNE data by YCharts

Clean Energy Fuels

Another earnings short-squeeze trade in the alternative energy complex is Clean Energy Fuels (CLNE), which is set to release its numbers on Monday after the market close. This company, together with its subsidiaries, provides natural gas as an alternative fuel for vehicle fleets in the U.S. and Canada. Wall Street analysts, on average, expect Clean Energy Fuels to report revenues of $80.10 million on a loss of 17 cents per share.

This heavily shorted stock has been beaten down pretty hard during the last four months, with shares dropping from its March high of $24.75 to a recent low of $12.13 a share. The current short interest as a percentage of the float for Clean Energy Fuels is extremely high at 30.5%. That means that out of the 57.52 million shares in the tradable float, 17.48 million shares are sold short by the bears.

From a technical perspective, CLNE is currently trading below both its 50-day and 200-day moving averages, which is bearish. Following that large drop in March, shares of CLNE have entered a sideways trading pattern for the last two months between $12.13 and $16.75 a share. A move outside of that range post-earnings will likely setup the next major trend for CLNE.

If you're in the bull camp on CLNE, then I would wait until after they report earnings and look for long-biased trades if it manages to break out above some near-term overhead resistance levels at $14.39 to $15.32 a share, and then above $16.75 a share with high volume.

Look for volume on that move that registers near or above its three-month average action of 1,622,350 shares. If we get that move, then CLNE will have a great chance of re-testing and possibly taking out its next major overhead resistance level $19.69 a share.

I would simply avoid CLNE or look for short-biased trades if after earnings this stock fails to trigger that breakout, and then moves back below some near-term support levels at $13.29 to $13.15 a share with heavy volume. If we get that action, then CLNE will likely re-test and possibly take out its June low of $12.13 a share.

3 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!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

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