One potential earnings short-squeeze candidate is oil well services and equipment player Heckmann (HEK), which is set to release numbers on Monday after the market close. Wall Street analysts, on average, expect Heckmann to report revenue of $107.99 million on a loss of 2 cents per share
During the last quarter, Heckmann reported revenue of $93.1 million and GAAP reported sales were 95% higher than the prior-year quarter's $47.8 million. During that same quarter, Heckmann reported EPS that was a loss of 6 cents per share and GAAP EPS that was also a loss of 6 cents per share, vs. a loss of 18 cents per share for the prior-year quarter.
The current short interest as a percentage of the float for Heckmann is extremely high at 28.2%. That means that out of the 93.11 million shares in the tradable float, 40.40 million shares are sold short by the bears. If this company can deliver bullish earnings news, then we could easily see a large short-squeeze develop post-earnings.From a technical perspective, HEK is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock recently started to trend back above its 200-day at $3.65 a share and is now quickly moving within range of triggering a near-term breakout trade post-earnings. If you're bullish on HEK, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 50-day moving average at $3.85 a share and then above more overhead resistance at $3.98 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 2.30 million shares. If that breakout triggers, then HEK will set up to re-test or possibly take out its next major overhead resistance levels at $4.35 to $4.45 a share. Any move above $4.45 will then put $5 to $5.14 into range for shares of HEK.