I previously posted a bullish trade on ESI over a month ago ahead of the company’s earnings announcement. Shares have appreciated from $14 all the way up to $28 a few days ago. A double in the share price is quite a move. (more…)
Molycorp (MCP) – another short squeeze gem
Molycorp, Inc. produces and sells rare earth and rare metal materials in the United States and internationally. The company’s Resources segment extracts rare earth minerals, including rare earth concentrates; rare earth oxides (REO), such as lanthanum, cerium, neodymium, praseodymium, and yttrium; heavy rare earth concentrates, which include samarium, europium, gadolinium, terbium, dysprosium, and others; and SorbX, a line of proprietary rare earth-based water treatment products (more…)
Sodastream (SODA) is popping
SodaStream International Ltd. engages in the development, manufacture, and sale of home beverage carbonation systems that enable consumers to transform ordinary tap water instantly into carbonated soft drinks and sparkling water. The company operates through four segments: the Americas; Western Europe; the Asia-Pacific; and Central and Eastern Europe, the Middle East, and Africa. It offers a range of soda makers; exchangeable food-grade carbon-dioxide (CO2) cylinders and refills; reusable carbonation bottles; and various flavors to add to the carbonated water, as well as sells additional accessories, such as bottle cleaning materials and ice cube trays. (more…)
Liquidity Services (LQDT) has short squeeze potential
Liquidity Services, Inc. operates various online auction marketplaces for surplus, salvage, and scrap assets in the United States. The company’s auction marketplaces include liquidation.com that enables corporations to sell surplus and salvage consumer goods and capital assets; govliquidation.com, which enables selected federal government agencies to sell surplus and scrap assets; and govdeals.com that enables local and state government entities, including city, county, and state agencies, as well as school boards and public utilities to sell surplus and salvage assets. (more…)
Digital Generation (DGIT) Are the Negatives Baked Into the Price?
Digital Generation, Inc. provides digital technology services that enable the electronic delivery of advertisements, syndicated programs, and video news releases to traditional broadcasters, online publishers, and other media outlets. It is also involved in electronic and physical distribution of broadcast advertising content, such as video and audio content to broadcasters, as well as delivers political advertising during election campaigns providing a response mechanism for candidates and issue groups, and offers advertising services to advertising agencies and advertisers in the infomercials industry. In addition, the company delivers digital video broadcast services through its Digital Media Gateway platform; and operates SourceEcreative, an online database of content and credits of the U.S. television commercials for the advertising and TV commercial production industry. (more…)
Expect an Earnings Miss from AOL
America Online is a well known company for those of us who were on the internet before names like Google, Facebook, and Twitter existed. AOL was the way virtually everyone accessed the internet, and was the way that everyone accessed their email. AOL had basically a monopoly on American internet users, with Yahoo their only competitor. AOL parlayed their enormous member base into further profits by advertising to them, and finding ways to sell to them. Sounds very similar to what Facebook, Google do today right? Difference is FB and GOOG do it better and for free (AOL still charges members to access the internet?!). (more…)
Core Labs (CLB) – Long the cup and handle breakout
“Core Laboratories N.V. provides reservoir description, production enhancement, and reservoir management services to the oil and gas industry worldwide. The company’s reservoir description services comprise the characterization of petroleum reservoir rock, fluid, and gas samples; and provision of analytical and field services to characterize properties of crude oil and petroleum products. Its production enhancement products and services relate to reservoir well completions, perforations, stimulations, and production, as well as include integrated services to evaluate the effectiveness of well completions and to develop solutions to increase the effectiveness of enhanced oil recovery projects. The company’s reservoir management services consist of the combination and integration of information from reservoir description and production enhancement services to increase production and enhance recovery of oil and gas from clients’ reservoirs.” (more…)
Bears could get nervous about ITT Education (ESI)
While the current trading environment is not extremely conducive for short squeezes, I think we could get one in ITT education (ESI) when they report earnings on April 25. ESI has historically been a highly shorted stock, which has undergone extreme price fluctuations due to bearish speculation through high short interest. There is not a lot to like in the For profit education industry when you consider that the government has drawn back many of the educational grants for education seekers. The precipitous drop in shares of APOL, ESI, STRA are indications of that. (more…)
Profit from Earnings Volatility and Straddle Infinera (INFN)
Earnings season is a very volatile time period for stocks, and over time I’ve learned one thing about trading around earnings releases… you can count on an increase in price volatility after the event happens every time, but you can’t reasonably predict what direction a stock will go after the event. So how can we profit from this in the options world? Well, it’s not as easy as just going long option premium because the way the options market works, is option premiums get inflated as a company event, like an earnings release, is anticipated. (more…)
Market Top looming? Long SPY puts
I like to try and call tops and bottoms – but as all of you experienced traders know, calling the exact top and bottom and posturing your trades around that exact time tend to be losing propositions. (more…)