This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Hated Earnings Stocks Poised to Pop

Stocks in this article: UA VPRT ZOLT FB NGVC

Natural Grocers by Vitamin Cottage

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

My final earnings short-squeeze play is specialty retailer of natural and organic groceries and dietary supplements Natural Grocers by Vitamin Cottage (NGVC), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Natural Grocers by Vitamin Cottage to report revenue of $92.43 million on earnings of 8 cents per share.

The current short interest as a percentage of the float for Natural Grocers by Vitamin Cottage stands is pretty high at 14.7%. That means that out of the 4.67 million shares in the tradable float, 1.36 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 9.7%, or by about 119,000 shares. If the short-sellers are caught leaning too hard into a bullish quarter, then shares of NGVC could explode higher post-earnings.

From a technical perspective, NGVC is currently trending above its 50-day moving average, which is bullish. This stock has been uptrending strong for the last month, with shares soaring from its low of $17.47 to its recent high of $20.88 a share. During that uptrend, shares of NGVC have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of NGVC within range of triggering a major breakout trade post-earnings.

If you're in the bull camp on NGVC, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $20.88 to $21.47 a share and then once it clears more overhead resistance at $22.46 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 109,442 shares. If that breakout triggers, then NGVC will set up to re-test or possibly take out its 52-week high of $25 a share.

I would simply avoid NGVC or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below its 50-day moving average of $19.72 a share with high volume. If we get that move, then NGVC will set up to re-test or possibly take out its next major support levels at $18 to $17.47 a share. Any move below $17.47 will then push NGVC within range of taking out its 52-week low of $17.20 a share.

To see more potential earnings short squeeze plays, check out the Earnings Short Squeeze Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.

RELATED LINKS:



Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

6 of 6

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!

Markets

DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

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