Another potential earnings short-squeeze play is Books-A-Million (BAMM), which is set to release its numbers on Tuesday after the market close. This company is engaged in the sale of books, magazines and related items through a chain of retail bookstores. There are currently no Wall Street estimates available for Books-A-Million.
The current short interest as a percentage of the float for Books-A-Million is extremely high at 20.4%. That means that out of the 10.13 million shares in the tradable float, 1.16 million shares are sold short by the bears. This stock has a very low float and a high short interest. Any bullish earnings news could easily spark a monster short-squeeze for BAMM post-earnings.
From a technical perspective, BAMM is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending for the last month, with shares dropping from $2.95 to its recent low of $2.30 a share. During that downtrend, shares of BAMM have mostly been making lower highs and lower lows, which is bearish technical price action.If you're in the bull camp on BAMM, 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 at $2.50 with high volume. Look for volume on that move that registers near or above its three-month average action of 17,425 shares. If we get that breakout, then BAMM will set up to re-test or possibly take its 50-day at $2.71 and its 200-day at $2.82 a share. Any high-volume move above those key moving averages will then put $2.95 to $3.20 into focus for shares of BAMM. Tilly's One potential earnings short-squeeze trade is Tilly's (TLYS), which is set to release numbers on Tuesday after the market close. This company is a specialty retailer of West Coast inspired apparel, footwear and accessories. Wall Street analysts, on average, expect Tilly's to report revenue of $128.66 million on earnings of 30 cents per share. The current short interest as a percentage of the float for Tilly's stands at 3.9%. That means that out of the 17.94 million shares in the tradable float, 357,000 shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 4.7%, or by about 16,000 shares. If the bears are caught pressing their bets into this quarter, then we could easily see a decent short-squeeze develop post-earnings.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV