Another potential earnings short-squeeze play is satellite-based managed network solutions provider
(GCOM), which is set to release its numbers on Tuesday after the market close. Wall Street analysts, on average, expect Globecomm to report revenue of $99.17 million on earnings of 20 cents per share.
The current short interest as a percentage of the float for Globecomm is rather high at 11.3%. That means that out of the 20.25 million shares in the tradable float, 2.45 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 16.6%, or by about 348,000 shares. If the bears are caught leaning too hard into this quarter, then we could easily see a monster short-squeeze develop post-earnings.
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From a technical perspective, GCOM is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the past two months, with shares ripping from a low of $9.44 to its current price of around $12.60 a share. During that uptrend, shares of GCOM have consistently made higher lows and higher highs, which is bullish technical price action.
If you're in the bull camp on GCOM, then I would wait until after it reports earnings and look for long-biased trades if this stock can manage to maintain its trend above its 200-day moving average of $12.62 with high volume. Look for volume on that move that registers near or above its three-month average action of 133,861 shares. If GCOM can hold that trend, then this stock has a great chance of re-testing or possibly taking out its next major overhead resistance levels at $14.37 to $15 a share post-earnings.
I would simply avoid GCOM or look for short-biased trades if after earnings this stock fails to hold a trend above its 200-day, and then trades below some near-term support at $11.50 to $11.17 a share with heavy volume. If we get that action, then look for GCOM to re-test and possibly take out its 50-day moving average of $10.89 a share. If that 50-day gets taken out, then some possible downside targets at $10 to $9.50 a share.