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: HMINKORSIOCCSODSZYM

>>5 Dividend Stocks Set to Give Shareholders a Raise

With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week.

Home Inns & Hotels Management

My first earnings short-squeeze play is Home Inns & Hotels Management (HMIN), which is set to release numbers on Tuesday after the market close. This company develops, leases, operates, franchisees, and manages a chain of hotels in the People's Republic of China. Wall Street analysts, on average, expect Home Inns & Hotels Management to report revenue of $232.18 million on earnings of 37 cents per share.

This stock has been uptrending very strong over the last three months, with shares up sharply by 29%. This move has pushed shares of Home Inns & Hotels Management within seven points of its 52-week high of $35.89 a share ahead of its earnings report.

The current short interest as a percentage of the float for Home Inns & Hotels Management is pretty high at 10%. That means that out of the 31.62 million shares in the tradable float, 3.11 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 and guidance could send this stock soaring higher post-earnings.

From a technical perspective, HMIN is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last four months, with shares soaring from a low of $16.32 to its recent high of $29.67 a share. During that uptrend, shares of HMIN have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed HMIN within range of triggering a near-term breakout trade post-earnings.

If you're bullish on HMIN, then I would wait until after its report and look for long-biased trades once it manages to break out above some near-term overhead resistance levels at $29.67 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 242,987 shares. If we get that breakout, then look for HMIN to re-test or possibly take out its next major overhead resistance levels at $32.95 to $33.27 a share. Any high-volume move above those levels will then put the 52-week high of $35.89 a share into focus for HMIN.

2 of 7

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 16,380.41 +263.17 1.63%
S&P 500 1,886.76 +24.00 1.29%
NASDAQ 4,258.4380 +41.0480 0.97%

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