It looks like Cohen has purchased 2.1 million shares of U.S. Silica since the beginning of April. Cohen's bet on U.S. Silica is most likely for the company's increasing role in fracking, since its commercial silica is used as "frack sand" in the hydrofracking process that is popular use among oil and gas players throughout the U.S.

This company just delivered a profit but missed Wall Street expectations, and failed to beat revenue expectations. Adjusted EPS jumped 5.56% to 38 cents per share in the quarter vs. EPS of 36 cents per share in the year-earlier quarter. Revenue rose 24.09% to $129.9 million from the year-earlier period, which missed expectations of $134.57 million.

From a technical perspective, SLCA has been trending sideways and consolidating for the last four months, with shares moving between $24.71 on the upside and $18.12 on the downside. That's a big range, so traders should look for a short-squeeze if SLCA can manage to break out above the upper-end of its sideways trading chart pattern. That breakout will trigger if SLCA manages to take out some near-term overhead resistance levels at $23.83 to $24.71 a share with high volume. If that breakout hits, then SLCA will set up to re-test its all-time high at $28.50 a share.

The real short-squeeze for SLCA will start once it takes out $28.50 with big volume. Look for volume on that move that hits near or above its three-month average action of 1.36 million shares. If we get that move anytime soon, then SLCA could easily tag $40 to $50 a share as the bears rush to cover some of their short bets.

Blue Nile

Another heavily shorted stock that Cohen is getting involved in here is Blue Nile ( NILE), an online retailer of diamonds and jewelry. This stock has been uptrending during the last six months, with shares up by 16%.

Blue Nile has a market cap of $475 million and an enterprise value of $437 million. This stock trades at a premium valuation, with a trailing price-to-earnings of 49.71 and a forward price-to-earnings of 34.80. Its estimated growth rate for this year 30.2%, and for next year it's pegged at 30.5%. The current short interest as a percentage of the float for Blue Nile is very high at 18.5%.

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