Hey folks, Timothy Sykes says he's got it boiled down to just one stock today. Here's his post: Because I’m so tired of all my recent picks performing well, but not incredibly well, I’m only picking one stock today. That way I’ll either be the hero or the goat, no excuses. Time usually does not permit me to delve into all the glorious details, but today it does.
This pick has everything going for it:
-Today, earnings will be announced after the close.
-Its chart is waaaaaaaaay off its highs.
-Its chart is bumping up against breakout levels.
-Its highly shorted, so any good news will really squeeze the short sellers.
This stock is currently trading at $6.31 and if it breaks $6.59, it’s a confirmed nine month breakout without any resistance until $7. That’ll be a nice 10% move without the risk of many sellers getting in the way and ruining all the fun.
In 2005 and early 2006, this company’s stock tripled, from $4 to $12, in anticipation of a new management team that was supposed to turn things around. The new management team was elected, but so far the results have been ugly and the stock has lost nearly all of its gains. Previously, this new management team had moaned about not having time to implement all their strategies. Now that excuse is no longer valid. It’s time to put up or shut up.
This company is incredibly ridden with debt so if this new management team’s strategies don’t start showing some results very soon, this company will be liquidated. Following this logic, nearly 25 million shares, or one third of the float, are short.
This company business is extremely seasonal so while Q1 numbers have already been said to be niiiiiiice, they don’t really matter. What does matter is management’s discussion of Q2 tracking.
I’ve picked this stock in the past and its let me down. Now management has had the time to change things up so I’m betting they’ll finally show signs of improvement and the stock will surge.
My pick is SIX.
Timothy Sykes is a hedge fund manager, star of the reality show Wall Street Warriors, and author of the upcoming book, “An American Hedge Fund” He can be reached at www.timothysykes.com.
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