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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

5 Earnings Short-Squeeze Plays

I would avoid MFRM or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some key near-term support levels at $27 to $25.88 a share with high volume. If we get that action, then MFRM will set up to re-test or possibly take out its next major support level at $22.82 a share.

Pandora Media

Another earnings short-squeeze trade idea is Pandora Media (P), which is set to release numbers on Tuesday after the market close. This company provides internet radio services in U.S. Wall Street analysts, on average, expect Pandora Media to report revenue of $117.07 million on earnings of 1 cent per share.

If you're looking for a heavily-shorted stock that's been beaten-down by the bears heading into its quarter, then make sure to check out shares of Pandora Media. This stock has been hit hard by the bears during the last three months, with shares off by 26%.

The current short interest as a percentage of the float for Pandora Media is extremely high at 31.3%. That means that out of the 109.95 million shares in the tradable float, 34.22 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 1.5%, or by about 510,000 shares. If the bears are caught pressing their bets too hard into this quarter, then we could easily see a monster short-squeeze develop post-earnings.

From a technical perspective, P is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last three months, with shares plunging from a high of $12.57 to its recent low of $7.08 a share. During that downtrend, shares of P have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of P have recently rebounded sharply off that $7.08 low and the stock is quickly moving within range of triggering a near-term breakout trade post-earnings.

If you're bullish on P, then I would wait until after its report and look for long-biased trades if this stock can manage to break out above some near-term overhead resistance levels at $9.02 to $9.11 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 4,981,850 shares. If that breakout hits, then P will set up to re-test or possibly take out its next major overhead resistance level at $10.04 to $10.10 a share. If those levels get taken out with volume, then P will have a chance to trade above $11 a share post-earnings.

Stock quotes in this article: PBY, BIG, MFRM, P, PLAB 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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