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Two Longs and Two Shorts to Watch in a Topsy-Turvy Market

NEW YORK (TheStreet) -- In this topsy-turvy market, there are some attractive charts on both the long and short side.

Among the longs, BioDelivery Sciences International (BDSI - Get Report) looks like it's ready to make another move. On Wednesday, it gained 39 cents to $13.02, positioning itself right against the declining tops line where a nice little coil has formed over the last month. The move came on 818,000 shares, which is not the big volume it'll need on a break. Resistance is at about the $14.35-$14.38 range. If it gets through that, look for a move up to $16, and then $18.50. It's currently at $12.60, up nearly 114%.

Tesla Motors (TSLA - Get Report) is acting very well. It had a special day on Wednesday, up $10.50, or 4.4%, to $248.93 on 9.2 million shares. More importantly, it took out the recent high at $244.49, and got as high as $251.42 before pulling back on profit taking. Still, with a close above resitance at the previous high, look for this stock to get to $265. Right now it's near $255, up 69% year to date.

On the short side, Interactive Intelligence Group (ININ - Get Report) dropped on Wednesday as its bear flag appears to have broken down. It was down $2.12, or 4.63%, to $43.67. Look for a test of the recent low at $40, and then potentially $36 at the bottom of the declining channel. At $43 currently, it's down 36%.

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Dealertrack Technologies (TRAK) has a head-and-shoulders topping pattern. It recently formed a rising wedge that broke sharply, and now is forming a bear flag. If the stock takes out $36.25 to $36.50, then it could down to about $31-$32. At $38, it's down 21%.

See Harry's video chart analysis on these stocks.

At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

TheStreet Ratings team rates BIODELIVERY SCIENCES INTL as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate BIODELIVERY SCIENCES INTL (BDSI) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Pharmaceuticals industry and the overall market, BIODELIVERY SCIENCES INTL's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for BIODELIVERY SCIENCES INTL is currently extremely low, coming in at 5.05%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, BDSI's net profit margin of -22.44% significantly underperformed when compared to the industry average.
  • BIODELIVERY SCIENCES INTL reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BIODELIVERY SCIENCES INTL reported poor results of -$1.51 versus -$0.04 in the prior year. This year, the market expects an improvement in earnings (-$0.63 versus -$1.51).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 63.5% when compared to the same quarter one year prior, rising from -$12.72 million to -$4.64 million.
  • This stock has increased by 195.13% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in BDSI do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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TRAK $63.16 1.69%
ININ $32.28 0.00%
TSLA $226.72 0.00%
BDSI $6.52 0.00%
FB $92.47 0.00%


Chart of I:DJI
DOW 17,050.75 +138.46 0.82%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,810.7880 +19.6360 0.41%

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