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Another earnings short-squeeze prospect is specialty coffee and coffee maker player
Green Mountain (
GMCR), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect Green Mountain Coffee Roasters to report revenue of $1.02 billion on earnings of 73 cents per share.
During the last quarter, this company reported revenue of $1.34 billion, and GAAP reported sales were 16% higher than the prior-year quarter's $1.16 billion. Also during the last quarter, non-GAAP EPS was 76 cents per share and GAAP EPS was 70 cents per share, which was 6.1% higher than the prior-year quarter's 66 cents per share.
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The current short interest as a percentage of the float for Green Mountain Coffee Roasters is extremely high at 26.5%. That means that out of the 128.97 million shares in the tradable float, 32.25 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then this stock could see a solid short-covering rally post-earnings.
From a technical perspective, GMCR is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last three months, with shares soaring higher from its low of $42.25 to its recent high of $59.62 a share. During that uptrend, shares of GMCR have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of GMCR within range of triggering a major breakout trade post-earnings.
If you're bullish on GMCR, 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 $59.62 to $60 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 3.60 million shares. If that breakout triggers, then GMCR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $70 to $75 a share.
I would avoid GMCR 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 $57 to $55.31 a share with high volume. If we get that move, then GMCR will set up to re-test or possibly take out its next major support level at its 50-day of $54.37 a share to $52.58 a share. If those levels get taken out with volume, then GMCR could hit $47.50 to $45 a share post-earnings.