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 Hated Earnings Stocks You Should Love

JA Solar

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

Get Adobe Flash player

My first earnings short-squeeze play is solar power player JA Solar ( JASO), which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect JA Solar to report revenue of $250.42 million on a loss of 54 cents per share.

>>5 Tech Stocks Rising on Big Volume

The current short interest as a percentage of the float JA Solar is pretty high at 15%. That means that out of the 30.82 million shares in the tradable float, 4.06 million shares are sold short by the bears. This is a big short interest on a stock with relatively low tradable float. Any bullish earnings news could easily spark a large short-covering really for shares of JASO post-earnings.

From a technical perspective, JASO is currently trending below its 50-day moving average and above its 200-day moving average, which is neutral trendwise. This stock has been downtrending over the last month and change, with shares falling from its high of $9.91 to its low of $7.28 a share. During that move, shares of JASO have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of JASO have started to bounce higher over the last week, and the stock is now moving within range of triggering a near-term breakout trade post-earnings.

If you're bullish on JASO, 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 $8.03 a share and then once it takes out more resistance at $8.58 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 1.96 million shares. If that breakout triggers, then JASO will set up to re-test or possibly take out its next major overhead resistance levels at $9.60 to $9.91 a share. Any high-volume move above those levels will then put its 52-week high at $11.40 into range for shares of JASO.

I would simply avoid JASO 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 $7.28 to $6.83 a share with high volume. If we get that move, then JASO will set up to re-test or possibly take out its next major support levels $5.90 to $5.34 a share.
2 of 6

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
JASO $8.28 -0.60%
KKD $16.64 -1.10%
LRN $12.11 2.40%
WSM $57.08 -1.50%
COCO $0.01 1.49%


Chart of I:DJI
DOW 17,689.82 +29.11 0.16%
S&P 500 2,049.53 -1.10 -0.05%
NASDAQ 4,708.3390 -8.7550 -0.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs