Hey folks--we have guest blogger Jeff Mishlove's contest picks for the day. Let's get right to his comments: Now that the Tuesday results are in, I see that my top recommendation for Monday had a significant price gain. That was Adtran, Inc., which rose 6.16%. This stock had a lot going for it: it was favored by hedge funds and professional investors; it was approaching its 52-week high; a significant amount of stock was controlled by short sellers; and it had an earnings announcement scheduled.
Let’s see if I’ll be able to find some stock picks at least as good to buy on Wednesday. It’s going to be tough to narrow down the list, since there will be at least 62 earnings announcements between Wednesday’s close and Thursday’s close. Of these, there are some definite standouts. Here they are:
Arbitron , the company that measures the strength of radio audiences and provides media and marketing information, is at an all-time high. Short interest is relatively high with more than 7% of the stock float controlled by short sellers. At least two funds keep ARB in their portfolios, including Okumus Capital LLC, a company with a particularly strong track record.
SurModics , a company specializing in drug delivery technologies, is interesting purely from the short squeeze perspective. Short sellers control an astonishing 40% of the stock float! It also has a history of large, single day, price jumps. It is very close to its 52 week high right now. With positive earnings news, it could break out in a big way.
ICU Medical , another company specializing in drug delivery technologies, is very close to its 20 week high. It also has attracted the interest of short sellers who control about 15% of the stock float. However, it seems to be completely under the radar of the hedge funds and mutual funds.
MGI Pharmaceuticals is at a 52-week high. It is in the portfolios of at least three professionally managed funds. Almost 10% of the stock float is controlled by short sellers. And, it has recently announced positive tests of a new sedative drug, Aquavan.
Novellus , a company specializing in semiconductor equipment and materials, is being actively pursued by a number of hedge funds right now. At the same time, over 10% of the outstanding stock float is in the hands of short sellers. The stock is currently within 10% of its 52-week high.
Cubist Pharmaceuticals is near its six-month high. It is owned by at least four professional funds. But, 15% of the stock is still in the hands of short sellers. It has recently announced several licensing deals with Merck.
Of these six stocks, the three to watch most closely – in terms of professional fund interest – are NVLS, ARB and CBST. These are my top choices. The three to watch most closely, strictly from the perspective of short squeeze potential are MOGN, ICUI and SRDX. These three are much riskier choices.
Jeffrey Mishlove, a registered Commodity Trading Advisor, is founder of www.forecastingsystems.com. Heis author of The PK Man, The Roots of Consciousness, and Psi Development Systems.
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