Home /  Tag: short interest

AOL’s Short Covering Rally is out of steam – be Bearish

On November 5th, America Online reported revenue that beat the street’s expectations, 561m vs. 531m estimated. That surprise led to an impressive gain in AOL shares as the stock ran from $40 to $47 from 11/5 to 11/15. The earnings report to me though was mixed because the company missed on the earnings per share estimate (reporting .02 cents when a profit of .36 cents was expected). The rally in the shares looks to me to have been mostly related to short covering. For proof of this, you need only pull up AOL’s short interest data. (more…)

Read More →

Will Open table (OPEN) lose its lunch to YELP?

Open table competes with Yelp in online restaurant research. Yesterday, YELP reported strong earnings and revenue growth, and the YELP is rallying today on a massive short squeeze. Open table is rallying today off YELP’s halo effect, but since the 2 companies are in competition, YELP’s strength may be at the expense of OPEN’s user base. (more…)

Read 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…)

Read More →

Bearish on Energizer (ENR)

Energizer looks like a good “short the dead cat bounce” opportunity, bumping up against the 50 SMA and finding overhead resistance around the same level. No unusual options activity. It came up on my short screen, looking for stocks under their 200 and 50 day moving averages, negative sales growth q/q, over 50% institutionally owned, short float under 10%. Also, some bearish comments from Zacks about their profit picture: (more…)

Continue Reading