This Day On The Street
Continue to site
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

5 Heavily-Shorted Earnings Plays

I would simply avoid BKS or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some key support levels at $14.34 to $14.06 a share with heavy volume. If we get that action, then BKS will set up to trade down towards its next major support levels at around $12.50 to $12 a share.

OmniVision Technologies

One potential earnings short-squeeze candidate is OmniVision Technologies (OVTI), which is set to release numbers on Thursday after the market close. This company designs, develops and markets highly integrated semiconductor image-sensor devices. Wall Street analysts, on average, expect OmniVision Technologies to report revenue of $373.80 million on earnings of 30 cents per share.

If you're looking for a heavily-shorted stock that's been uptrending strongly so far in 2012, then make sure to check out shares of OVTI. This stock has been racking up gains on the year, with shares up around 24%. Shares of OVTI are currently trading just six points off its 52-week high of $21.11 a share ahead of its report.

The current short interest as a percentage of the float for OmniVision Technologies is rather high at 15.4%. That means that out of the 49.12 million shares in the tradable float, 8.17 million shares are sold short by the bears. If OmniVision can deliver the earnings news the bulls are looking for, then a decent short-squeeze could easily trigger post-earnings.

From a technical perspective, OVTI is currently trending above its 50-day moving average and right below its 200-day moving average, which is neutral trendwise. This stock has been trending sideways for the past two months, with shares moving between $13.05 on the downside and $15.49 on the upside. A move outside of that range post-earnings will likely set up the next major trend for shares of OVTI.

If you're bullish on OVTI, then I would wait until after its report and look for long-biased trades as long as it's trending above $15.49 and its 200-day moving average of $15.63 a share with strong upside volume flows. Look for volume that registers near or above its three-month average volume of 1,756,040 shares. If we get that action, then OVTI will set up to re-test or possibly take out its next major overhead resistance levels at $17 to $17.85 a share. Any high-volume move above $17.85 will then put $19.64 to $21.11 into focus for OVTI.
4 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
GMCR $91.67 -0.30%
OVTI $29.38 1.49%
BKS $11.75 0.00%
TIF $71.35 0.00%
SPLK $51.98 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs