Green Plains Renewable Energy
Another potential earnings short-squeeze play is ethanol producer and distributor Green Plains Renewable Energy (GPRE), which is set to release its numbers on Wednesday before the market open. Wall Street analysts, on average, expect Green Plains Renewable Energy to report revenue $775.76 million on earnings of 77 cents per share.
The current short interest as a percentage of the float for Green Plains Renewable Energy is extremely high at 24.3%. That means that out of the 23.98 million shares in the tradable float, 5.78 million shares are sold short by the bears. This stock has a large short interest and a very low tradable float. Any bullish earnings news could easily kick off a monster short-squeeze post-earnings that forces the bears to cover some of their positions.
From a technical perspective, GPRE is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong over the last six months, with shares moving higher from its low of $13.73 to its recent high of $32.60 a share. During that uptrend, shares of GPRE have been making mostly higher lows and higher highs, which is bullish technical price action. Shares of GPRE are now starting to trend within range of triggering a big breakout trade post-earnings.
If you're in the bull camp on GPRE, 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 $30.96 a share to its 52-week high at $32.60 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 1.08 million shares. If that breakout triggers, then GPRE will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $40 to $45 a share.
I would simply avoid GPRE or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 50-day moving average of $28.17 a share to more near-term support at $26 a share with high volume. If we get that move, then GPRE will set up to re-test or possibly take out its next major support levels at $22 to its 200-day moving average at $20.10 a share.