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 Heavy Shorts About to Report Earnings

I would avoid SCHN 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 $31 to $29.05 a share with high volume. If we get that move, then SCHN will set up to re-test or possibly take out its next major support levels at $28 to $27.50 a share.

Greenbrier Companies

Another earnings short-squeeze play is Greenbrier Companies (GBX - Get Report), which is set to release numbers on Wednesday before the market open. This company designs, manufactures and markets railroad freight car equipment in North America and Europe. Wall Street analysts, on average, expect Greenbrier Companies to report revenue of $400.42 million on earnings of 31 cents per share.

This stock recently sold off hard from its high of $21.63 to its recent low of $15.41 a share with heavy downside volume. Following that move, shares of GBX have started to stabilize at around $16 a share ahead of its quarterly report.

The current short interest as a percentage of the float for Greenbrier Companies is pretty high at 12.5%. That means that out of the 22.28 million shares in the tradable float, 3.05 million shares are sold short by the bears. This is a high short interest on a stock with a very low tradable float. Any bullish earnings news could spark a monster short-squeeze for GBX post-earnings.

From a technical perspective, GBX is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has been uptrending slightly since its recent selloff, with shares moving from a low of $15.41 to its recent high of $16.79 a share. That move has started to push GBX within range of triggering a near-term breakout trade post-earnings.

If you're bullish on GBX, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 200-day moving average at $16.49 and its 50-day moving average of $17.19 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 745,575 shares. If that breakout triggers, then GBX will set up to re-test or possibly take out its next major overhead resistance levels at $20 to $21.63 a share.
5 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
AA $9.40 3.50%
APOL $7.17 0.14%
GBX $33.71 -0.68%
LNN $70.20 0.44%
SCHN $16.15 0.44%


Chart of I:DJI
DOW 17,846.80 +34.61 0.19%
S&P 500 2,089.93 +0.79 0.04%
NASDAQ 5,116.1660 +13.3580 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs