Mishlove: Contest Picks For Tuesday
Senior Editor, CNBC
Guest blogger Jeff Mishlove is back with his contest picks for today. Let's get right to them. Here's Jeff: Monday’s closing prices revealed that all of my recommendations for purchase on Friday were quite profitable for a single day, although none of them were at the exhilarating level one would like to see to become a weekly winner. The chart below, takenfrom my blog of last Thursday, April 12, tells the story:
Still, the result seems to be a confirmation of the method that I am continuing to employ to suggest stock picks for purchase today, Tuesday.
Choosing appropriate stock recommendations for Tuesday was somewhat challenging, simply because we are in earnings season. I found twenty-six, small to mid cap stocks with earnings announcements coming up. Of those I was able to eliminate nineteen simply by examining their charts and noticing that they did not exhibit a history of single-day price movements greater than 5%. The following seven stocks remain on my list.
Champion Enterprises , a producer of factory-built houses and other modular structures, is at a six month high and appears to be breaking through a line of significant resistance. 24% of the stock float is controlled by short-sellers, so there is real potential for a short squeeze play.
Interwoven, Inc. . This provider of enterprise content management software and services is approaching a two-year high. 8% of the stock float is in the hands of short sellers. But, yesterday, the stock already jumped 4.81% in anticipation of the earnings announcement. The short-sellers are already heading for the door.
USANA Health Sciences . This multi-level marketing company has been at the center of an ethical scandal concerning conflicts of interest among its scientific advisory board. The stock has already plunged about a third in the past month. Over 18% of the stock float is in the hands of short sellers. A good earnings announcement could mean a substantial bounce.
Applied Industrial Technologies. This Cleveland based distributor of industrial products is hot. Just yesterday it jumped up 6% in anticipation of the upcoming earnings announcement. But, more than 8% of the stock float is controlled by short sellers. The stock appears to be breaking through a significant resistance trend line.
First Cash Financial . This stock has already jumped up 4.17% on Monday, in anticipation of the earnings announcement. 6% of the stock float is controlled by short sellers. They must be chewing their fingernails as the stock pushes to a new 30 day high.
Piper Jaffray . This investment banking company’s stock has been breaking through areas of resistance. On Monday, it rose over 2% on news of a merger that will take it into the asset management business. Nine percent of the stock float is controlled by short sellers.
Syntel . This information technology (IT) and business process outsourcing (BPO) company is very close to its all-time high. This has attracted short sellers by the droves and they now control 14% of the stock float. The stock took a 6% jump up on Friday.
Of these seven stocks, my top two choices are IWOV and SYNT. I have selected them because they both exhibit positive momentum in the face of strong short interest. It would be great, of course, if all of these Tuesday picks become winners – as we saw yesterday for Friday’s picks. While the odds are against it, let’s see what the market reveals.
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