5 Best Machinery Stocks To Buy For 2015

5 Best Machinery Stocks To Buy For 2015: FreightCar America Inc (RAIL)

FreightCar America, Inc. (America) is engaged in manufacturing of aluminum-bodied railcars in North America. America is also a manufacturer of coal cars. During the year ended December 31, 2011(2011), the Company was specialized in the production of coal cars, which represented 93% of its deliveries of railcars. The Company also refurbishes and rebuilds railcars and sells forged, cast and fabricated parts for all of the railcars it produces, as well as those manufactured by others. During 2011, its primary customers were railroads, shippers and financial institutions, which represented 83%, 2% and 1%, respectively, of its total sales attributable to each type of customer. During 2011, it delivered 6,188 railcars, including 4,500 aluminum-bodied coal cars. It offers railcar leasing and refurbishment alternatives to its customers. Through its newly formed subsidiary FreightCar Rail Services, LLC (FCRS), it provides railcar repair and maintenance, inspections, and railcar fle et management services for all types of freight railcars. Its railcar manufacturing facilities are located in Danville, Illinois and Roanoke, Virginia.

The Company also leases freight cars through its JAIX Leasing Company subsidiary. In addition, the Company manufactures coal cars for export to Latin America and manufactures intermodal railcars for export to the Middle East. With operations in Colorado, Indiana and Nebraska, it services freight cars and unit coal trains utilizing rail corridors in the Midwest and Western regions of the United States. The Company designs and manufactures aluminum-bodied and steel-bodied railcars that transport a range of various products. It manufactures two primary types of coal cars, such as gondolas and open-top hoppers. The BethGon is the aluminum-bodied coal gondola railcar segment, which is used in North America. Its aluminum bodied open-top hopper railcar, the AutoFlood, is a five-pocket coal car equ! ipped with a bottom dis charge gate mechanism. AutoFlood II and AutoFlood III design! incorporates the automatic rapid discharge system, the MegaFlo door system and a mechanism that uses an over-center locking design, enabling the cargo door to close with tension rather than by compression.

The Company also manufactures a range of other types of aluminum and steel-bodied coal cars, including triple hopper, hybrid aluminum/stainless steel hoppers and gondolas and flat bottom gondola railcars. The Companys portfolio of other railcar types include the AVC Aluminum Vehicle Carrier design, which is used to transport commercial and light vehicles (automobiles and trucks) from assembly plants and ports to rail distribution centers; the Articulated Bulk Container railcar designed to carry dense bulk products, such as waste products in 20 foot containers; Intermodal Double Stack railcars, including a stand-alone, 40 foot well car and the DynaStack articulated, 5-unit, 40 foot and 3-unit, 53 foot well cars for transportation of containers; a Small Cub e Covered Hopper railcar, which is used to transport products, such as roofing granules, fly ash, sand and cement; a Mill Gondola Railcar, which is used to transport steel products and scrap; Slab and Coil steel railcars, which is designed for transportation of steel slabs and coil steel products, respectively; Flat Railcars, Bulkhead Flat Railcars and Centerbeam Flat Railcars, which is designed to transport a range of products, including machinery and equipment, steel and structural steel components (including pipe), forest products and other bulky industrial products; a Woodchip Gondola Railcar, which is designed to haul woodchips and municipal waste, and a range of non-coal carrying open top hopper railcars designed to carry aggregates, iron ore, taconite pellets, petroleum coke and other bulk commodities.

The Company has established a licensing arrangement with a railcar manufacturer in Brazil pursuant to which its technology is us! ed to pro! duce various types of railcars in Brazil. In addition, it manufacture coal car! s for exp! ort to Latin America and have manufactured intermodal railcars for export to the Middle East. Railroads outside of North America have a range of track gauges that are sized differently than in North America, which requires it, in some cases, to alter manufacturing specifications for foreign sales. The Company has added 10 new or redesigned products to its portfolio in the last five years, including the AVC, slab and coil steel railcar, triple hopper and hybrid aluminum/stainless steel railcars, ore cars, ballast cars and aggregate cars. The Companys manufacturing process involves four basic steps: fabrication, assembly, finishing and inspection. In its fabrication processes, it employ standard metal working tools, many of which are computer controlled. Each assembly line typically involves 15 to 20 manufacturing positions, depending on the complexity of the particular railcar design. It uses mechanical fastening in the fitting and assembly of its aluminum-bodied railcar p arts, while it uses welding for the assembly of its steel-bodied railcars.

The Company competes with Trinity Industries, Inc., National Steel Car Limited, The Greenbrier Companies, Inc. and American Railcar Industries, Inc.

Advisors' Opinion:

• [By SA Pro Top Ideas]

  Stock Movers and Great Calls
  Alpha-Rich long and short ideas regularly move stocks and identify stocks that are about to move. Some notable recent calls subscribers had early access to:

  On July 24, Mike Williams explained why FreightCar America's (RAIL) shares could double by 2015 as it returned to historic profitability. Shares are +16.3% to date after a strong earnings report this week. Read article » Vince Martin said on June 17 that Cray's (CRAY) sell-off after Q1 earnings was way overdone, offering investors a great deal. After a strong earnings report last week, shares now stand +45% from where they were before the a! rticle. R! ead article »

  To Come Today
  Don't forget to check your SA Pro dashboard later today for the latest Alpha-Rich ideas. Any thoughts to share on the latest Alpha-Rich ideas? Leave a comment here.
  
  SA Pro Editors
  …............
  
  The SA Pro team is Eli Hoffmann (Editor in Chief), Rachael Granby (Editorial Product Manager), Daniel Shvartsman, Samir Patel, Michael McDonald, and Jeffrey Fischer (Senior Pro Editors). You can reach us at pro-editors@seekingalpha.com.

• [By Eric Volkman]

  FreightCar America (NASDAQ: RAIL  ) has found an internal candidate to be its new COO and president. The company named CFO Joseph McNeely to the position, effective immediately.

• [By Eric Volkman]

  FreightCar America (NASDAQ: RAIL  ) has found an executive to lead its finance team. The company announced that it appointed Charles Avery as its CFO, vice president of finance, and treasurer, replacing Joseph McNeely. Avery will take up his position on Aug. 1.

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/5-best-machinery-stocks-to-buy-for-2015.html

Top Industrial Disributor Companies To Buy For 2015

Top Industrial Disributor Companies To Buy For 2015: Actuate Corp (BIRT)

Actuate Corporation (Actuate), incorporated in November 1993, provides software and services to develop and deploy custom Business Intelligence and information applications. Actuate offers ActuateOne to develop and deploy Business Intelligence and Reporting Tools (BIRT)-based custom Business Intelligence and information applications focusing on browsers and mobile devices that deliver content hosted in cloud, software-as-a-service (SaaS) and on premises deployments. Its products and services are used by its customers to develop and deploy applications across a range of business functions, including financial management, sales management, account management, and customer self-service. Xenos solutions, based on Xenos Enterprise Server, loads, transforms and presents high volumes of data and documents across multiple channels. Actuates BIRT Spreadsheet products are Excel-based. In February 2014, Actuate Corporation announced the acquisition of legodo ag.

Actua teOne-Business Intelligence, Analytics and Reporting

Actuate offers a range of BIRT-based Business Intelligence (BI), analytics and reporting features within the integrated ActuateOne platform, providing 64-bit, in-memory analytics, user configurable dashboards, ad-hoc query, interactive mobile and Web content, brochure-quality reporting, and spreadsheet analysis. ActuateOne provides a platform upon which Global 9000 and packaged application software vendors develop and deploy BI and information applications. Such applications retrieve business information from databases, as well as print streams and deliver it as dashboards, interactive Web pages, spreadsheets, mobile content and analytic cubes to customers, partners and employees worldwide.

Xenos Enterprise Server Framework

Xenos Enterprise Server (ES) is an application that captures, identifies, routes, stores and retrieves structured and unstructured documents! and data. Xenos ES su pports the processing, extraction, transformation, repurposi! ng and personalization of structured and unstructured data in both legacy and SOA environments. Xenos ES distributes documents across multiple channels, such as Web, mobile and tablet devices in addition to providing interactivity and document analytics through its integration with ActuateOne.

Performance Analytics

Actuate BIRT Performance Analytics provides interactive dashboards, analytics, and scorecards. With Web interface, users across the enterprise can monitor operations, identify and analyze performance issues and enact initiatives.

BIRT Spreadsheet

Actuates BIRT Spreadsheet products deliver Excel-like reporting, formatting and calculation functionality within Java applications. Actuate BIRT Spreadsheet products can also leverage all the Actuate deployment options-embedded in applications or deployed cloud or on-premise enterprise environments.

The Company competes with Information Builders, Qlik Te ch, Pentaho, Jaspersoft, MicroStrategy, IBM, Microsoft, Oracle and SAP.

Advisors' Opinion:

• [By John Udovich]

  Yesterday, small cap business intelligence stock MicroStrategy Incorporated (NASDAQ: MSTR) surged 18.44%after reporting better-than-expected third quarter earnings meaning it might be a good idea to take a closer look at italong withsmall cap peers Actuate Corporation (NASDAQ: BIRT) and Qlik Technologies Inc (NASDAQ: QLIK) to see what they might offer small cap investors. After all, everyone is being inundated with huge amounts of data from multiple sources, but its the following small cap stocks that provide software platforms to help customers try to make sense of it all:

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/top-industrial-disributor-companies-to-buy-for-2015.html

Best US Companies To Invest In Right Now

Best US Companies To Invest In Right Now: Consumer Staples Select Sector SPDR (XLP)

Consumer Staples Select Sector SPDR Fund (the Fund) seeks to provide investment results that correspond to the price and yield performance of the Consumer Staples Select Sector of the S&P 500 Index (the Index). The Index includes companies that are primarily involved in the development and production of consumer products that cover food and drug retailing, beverages, food products, tobacco, household products and personal products.

The Fund utilizes a passive or indexing investment approach to invest in a portfolio of stocks that seek to replicate the Index. The Funds investment advisor is SSgA Funds Management, Inc.

Advisors' Opinion:

• [By Jon C. Ogg]

  4. Cyclical stocks outperform defensive stocks – This puts consumer discretionary, energy, financials, industrials, technology and materials all doing better than consumer staples, healthcare, telecom, and utilities. Doll also prefers a free cash flow yield to dividend yield and dividend growth over dividend yield.

  ETF Recommendation(s): Financial Select Sector SPDR (NYSEArca: XLF), Technology Select Sector SPDR (NYSEArca: XLK), Market Vectors Oil Services ETF (NYSEArca: OIH)… Avoid Consumer Staples Select Sector SPDR (NYSEArca: XLP) and Utilities Select Sector SPDR (NYSEArca: XLU).

  5. Dividends, stock buy-backs, capex, and M&A all increase at a double-digit rate – This is led by a lot of cash flow, underleveraged balance sheets, and possible great places to use cash. The argument for higher cap-ex is as follows: “Pent-up demand and aging of plant, equipment and technology argue for increases in those key areas.”

• [By Chris Ciovacco]

  We can learn much about the market's conviction during an advance by scanning the sector leadership lists. If Wednesday's pop in stocks was led by defensive consumer staples (XLP), utilities (XLU) and healthcare (XLV), it w! ould have cast serious doubt on the sustainability of the rally. That is not what we saw. The sectors providing leadership after the debt deal was announced were economically sensitive energy (XLE) and financials (XLF). Some big-name investors have mentioned valuations as a driver of interest in energy stocks. From Forbes:

• [By Markos Kaminis]

  Capital flows into equity funds have mostly found safe bets this year, with consumer staples, utilities and healthcare shares doing well. You can see this in the charts of the Utilities Select Sector SPDR (XLU), Consumer Staples Select Sector SPDR (XLP) and the Health Care Select Sector SPDR (XLV).

• [By Chris Versace, Editor, PowerTrend Brief and PowerTrend Profits]

  That, to me, says they're going to favor inelastic goods over elastic ones, so when you think of the things that we need each and every day, toilet paper, toothpaste, deodorant, shampoo, household cleansers, that sort of thing, that's what brings me into (XLP) and (VDC).

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/best-us-companies-to-invest-in-right-now.html

Hot Communications Equipment Companies To Buy Right Now

Hot Communications Equipment Companies To Buy Right Now: LifeLock Inc (LOCK)

LifeLock, Inc., incorporated on April 12, 2005, is a provider of proactive identity theft protection services for consumers and identity risk assessment and fraud protection services for enterprises. It operates in two segments: consumer segment and an enterprise segment. In its consumer segment, the Company offer identity theft protection services to consumers on a monthly or annual subscription basis. In its enterprise segment, it offer identity risk assessment and fraud protection services to enterprise customers who pay the Company based on their monthly volume of transactions with it. It protects its consumer subscribers, whom it refers to as its members, by monitoring identity-related events, such as new account openings and credit-related applications. It also provides remediation services to its members in the event that an identity theft actually occurs. On March 14, 2012, the Company acquired ID Analytics, Inc. In December 2013, the Company announced that it has completed the acquisition of Lemon Inc.

Consumer Business

The Company protects its members by proactively monitoring identity-related events, such as new account openings and credit-related applications, which may present a risk of identity theft. If it detects that a members personally identifiable information is being used, the Company sends notifications and alerts, including proactive, near real-time, actionable alerts, to the member via text message, phone call, or e-mail through its LifeLock Identity Alert system that allows the member to confirm valid or unauthorized identity use.

Enterprise Business

The Company delivers on-demand identity risk assessment and authentication information about consumers to its enterprise customers in their daily transaction flows. Its enterprise customers utilize this information in real time to authenticate their customers, assess their risk profile, and e! nhance the enterprises decision making process on which to base account opening, le! nding, credit, and other risk-based decisions. By integrating its services into their business processes, its enterprise customers can reduce potential financial losses from identity fraud. Information generated from the transaction flow at its enterprise customers is transmitted back to its data repositories, which continually enhances the LifeLock ecosystem and helps strengthen the services the Company can provide to its customers in the future.

The Company competes with Experian, Equifax, TransUnion, Affinion, Early Warning Systems, Intersections and LexisNexis.

Advisors' Opinion:

• [By Rick Munarriz]

  LifeLock (NYSE: LOCK  ) has been a beneficiary over the years, as folks turn to the company to monitor potential ID breaches. It scored another strong quarter, with revenue climbing 30% and adjusted profitability more than doubling.

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/hot-communications-equipment-companies-to-buy-right-now.html

Top High Dividend Stocks To Invest In Right Now

Top High Dividend Stocks To Invest In Right Now: Scripps Networks Interactive Inc(SNI)

Scripps Networks Interactive, Inc. operates as a lifestyle content company in the United States and internationally. It engages in the operation of television networks, including Home and Garden Television, Food Network, Travel Channel, DIY Network, Cooking Channel, and Great American Country. The company also operates Websites, including FoodNetwork.com, Food.com, CookingChannelTV.com, HGTV.com, DIYnetwork.com, and Travelchannel.com that are associated with its television networks and other Internet-based businesses serving food, home, and travel related categories. Scripps Networks Interactive, Inc. is headquartered in Knoxville, Tennessee.

Advisors' Opinion:

• [By Will Ashworth]

  Somebody will buy Scripps Networks Interactive (SNI), given that HGTV and Food Network are both in the top 20. It looked momentarily like Discovery Communications (DISCA) might be the suitor, but the company backed out of talks this past week, preferring to focus on overseas expansion.

• [By Lauren Pollock]

  Discovery Communications Inc.(DISCA) is mulling a bid for Scripps Network Interactive Inc.(SNI), the owner of cable channels like the Food Network and HGTV, according to a person familiar with the matter. Shares of Scripps jumped 10% to $83.01 premarket.

• [By Tim Beyers]

  You probably don't know Ken Lowe. Why should you? He's the CEO of Scripps Network Interactive (NYSE: SNI  ) , a five-year-old entertainment holding company that tends to keep clear of controversy. Or at least it used to.

source from Top Stocks For 2015:http://www.topstocksblog.com/top-high-dividend-stocks-to-invest-in-right-now.html

Citigroup Sees Big Drop in Trading Revenue, Shares Gain

Citigroup’s (C) CFO John Gerspach spoke at a Deutsche Bank conference today and offering some insights into where the company is heading.

Bloomberg News

In his comments, Gerspach said that Citi’s second-quarter trading revenue would drop by as much as 25% from a year ago, called loan demand “choppy,” and said that the banking giant’s “real goal” is to return more capital to shareholders.

Citigroup wasn’t the only bank making comments today. JPMorgan Chase (JPM) investment banking chief Daniel Pinto said marker revenue would be flat, while Bank of America (BAC) jumped after it said it had submitted a new capital-return plan to the Fed.

Best Integrated Utility Stocks For 2015

Nomura’s Bill Carcache thinks the return of excess capital by the bug banks will be “elusive:”

We think it may take years for banks to return the excess capital they hold today and expect excess capital accretion to continue over the near term, particularly with expected payout ratios around 50-80% for the 2014 CCAR period (2Q14-1Q15). In our view, getting the green light from regulators to pay out 100% of earnings will mark an important first step on the road to getting excess capital released. Most investors with whom we've spoken since our recent launch don't see that happening next year. At the earliest, we think it will take at least two years before the current generation of regulators allows some excess capital to leave the system. Even then, we believe the risk is high that a significant portion will remain trapped for a prolonged period. Uncertainty over when excess capital will be released makes us reluctant to give the banks full credit for it at this time.

Shares of Citigroup have gained 0.7% to $47.60 at 2pm today, while JPMorgan Chase has gained 1% to $55.07 and Bank of America has jumped 3% to $15.16.

Roth’s Exit From Advisor Group: ‘A Big Deal’

News that the Larry Roth, who has led the Advisor Group of 6,000 independent reps for the past six years, is set to be CEO of Nicholas Schorsch's Realty Capital Securities on Monday has raised eyebrows and questions for broker-dealer recruiters and other experts.

Peter Harbeck is serving as interim president and CEO of the Advisor Group, which includes the IBDs Royal Alliance, FSC Securities, SagePoint Financial and Woodbury Financial.

“This is a big deal. It leaves a big void,” said Jon Henschen, president of Henschen & Associates, a broker-dealer recruiting firm, in an interview.

Chip Roame, head of Tiburon Strategic Advisors, agrees. “Larry did a terrific job leading Advisor Group through the AIG crisis and rebuilding it afterward,” he said. “It would be difficult to rate his performance other than an A.”

Losing such an “A-level” executive is tough in any business, particularly in the highly competitive, bottom-line-focused field that IBDs play in today.

Two years ago, in fact, Roth predicted that many small broker-dealers “are gone or will be soon” because of technology, compliance and other business costs. “You cannot expect longevity if you’re a small niche player,” he said in an interview at the time. “This business is not for wimps.”

“Certainly Roth’s departure has the potential to cause weakness for Advisor Group in the marketplace today,” Roame said. “I do not know how the reps perceived Larry. But from the outside, he held the place together and grew it, so I assume they see him as a loss.”

Still, the industry consultant added, “I don’t think any rep leaves for this reason alone. If they had a foot out the door, this might speed them along. But no, I do not expect this to drive a lot of turnover.”

Hot Gas Companies To Invest In Right Now

Harbeck (right), who has worked for Advisor Group for nearly a decade, says the firm is “home to some of the industry’s greatest leaders … I am confident our more than 6,000 financial advisors understand our commitment to their success.”

Advisor Group, which is owned by AIG, wrapped up its purchase of Woodbury Financial Services from The Hartford in December, adding some 1,400 advisors and $25 billion in assets under management to its network. It hosted its annual conference for female advisors in May,emphasizing how important it is to expand the diversity of its advisor force.

Recently, it’s had a good run of recruiting. For instance, Royal Alliance Associates added a group of 50 independent advisors with $1.4 billion in assets and some $8 million in yearly fees and commissions in July. The group had previously been affiliated with Walnut Street Securities.

However, Henschen wonders if part of Roth’s motivation in leaving is the direction of the Advisor Group of IBDs. The group has done some consolidating recently, he says, and could stand to trim more staffers from its back offices. “That could be a tough thing to do, but it still has lots of overhead,” the recruiter said. Future Shock?

There are also questions over the Advisor Group's strategy and stability. “Who’s running the ship? And where is the firm headed?” Henschen asked. “The firm has been a bit iffy in this regard, and with Larry going, there will be some insecurity.”

The Advisor Group has been grappling with executive shifts at its IBDs in recent years. The head of Royal Alliance, Art Tambaro, said in July that he would retire at the end of the year. Tambaro has led Royal since 2007. He will be replaced by Dmitry Goldin.

Jerry Murphy was tapped to lead FSC in August 2011, after Mark Schlafly departed. Schlafly, formerly of LPL Financial, assumed the post in June 2008 when FSC’s chief at the time, Joseph “Joby” Gruber, was forced to resign. (FINRA charged Gruber with allowing a subordinate to take his 2007 continuing-education proficiency tests.)

SagePoint is led by Jeff Auld, formerly of Berthel Fisher and NEXT Financial. Auld joined the Advisor Group in July 2008, at the height of the financial crisis.

Interim CEO Harbeck insists that the Advisor Group is well positioned on its current growth path. Each of its broker-dealers “is actively recruiting advisors, and we are on track to have one of our most successful years in recent history,” he explains.

“We are one of the largest independent broker-dealer networks in the country,” he noted, “and we will continue to actively recruit advisors to each of our firms and remain focused on being the network of choice for today’s advisors.”

For his part, Henschen says, Roth's legacy does bode well for the group of IBDs. “I give Roth credit. With the ‘09 chaos at AIG, they lost reps that year and in 2010, but they have gained reps since then. And the Woodbury acquisition was a good one.”

---

Check out these related stories on ThinkAdvisor:

 

Best Buy Surprises the Street with Lighter Sales, Better Margins

Spencer Platt/Getty Images

They don't sell roller coasters at Best Buy (BBY), but investors probably feel as if they've been riding one lately. The consumer electronics superstore chain was one of last year's biggest winners, with its stock more than tripling. This year Best Buy has been one of the market's biggest losers, shedding nearly a third of its value in 2014 after last year's 237 percent pop. The crazy white-knuckled ride that Best Buy has been on took some new turns on Thursday after reporting its fiscal first quarter results. Sales came in lighter than expected, but improving margins found Best Buy stunning analysts by posting improving profitability. Wall Street was braced for a 38 percent plunge. That turnaround that the market seemed to be cheering on last year hasn't been easy to live up to this year, but its latest quarter shows that Best Buy is excelling in milking more out of its fading business. No one expected that. Turnarounds Turn Around It's been nearly two years since Hubert Joly was brought in as Best Buy's new CEO. The company was a mess at the time. Its former CEO was ousted after having an inappropriate relationship with a fellow employee. Best Buy's co-founder was trying to take the meandering retailer private.

Best Buy had searched far and wide for a new helmsman. The Frenchman had to secure a foreign work visa just to start the job. Saving a struggling bricks-and-mortar chain was never going to be easy. The "showrooming" trend was -- and is -- going strong, with more and more people checking out products at local stores before turning around and buying them for less online. The irony is rich here: Best Buy sells the smartphones that make showrooming possible. And they sell the tablets, e-readers, and portable media players that have spurred the growth of digitally delivered media, and dried up the markets for CDs, video games and DVDs. In short, Best Buy is selling the products that make Best Buy less necessary. Despite the challenge, Joly's attack plan gained traction. His five-point "Renew Blue" strategy sought to make the chain relevant again by reinvigorating the customer experience, attracting dynamic hires, cutting costs so that it could pass savings on to shoppers, and making other improvements. Investors and employees bought into Joly's vision, but customers weren't so quick to play along. Selling the Future It's easy to wonder why the stock more than tripled last year. By the time the fiscal year was through we saw Best Buy's revenue, comparable store sales, adjusted earnings, and operating margins all decline for the year. Best Buy wasn't in better shape than it was a year earlier. It was doing worse in nearly every facet of the game. Even some trends that were working for other consumer electronics retailers -- like the appliance and furniture sales that helped Conn's (CONN) and hhgregg (HGG) as housing began to boom again -- failed to make much of a difference at Best Buy. Best Buy's report on Thursday paints a mixed portrait. It predicts same-store sales will continue to decline through the next two quarters, and that's not what Wall Street wanted to hear. However, Best Buy's strong profitability during the first quarter suggests that the company may be better positioned to withstand the showrooming trend than critics originally believed. For now, investors don't have much of a choice. Buckle up the seat belt. Bring down the shoulder restraint. The roller coaster ride will continue.

More from Rick Aristotle Munarriz
•Amazon Prime Pulls Out More Exclusive Content to Fight Netflix •Walmart and McDonald's Earnings Prove Price Isn't Everything •Week's Winners and Losers: EBay, HP Mishandle Bad News

Will the AutoZone (AZO) Earnings Report Drive Shares Higher? AAP, ORLY & PBY

The fiscal Q3 2014 earnings report for auto parts retailer stock AutoZone, Inc (NYSE: AZO), a peer of Advance Auto Parts, Inc (NYSE: AAP), O'Reilly Automotive Inc (NASDAQ: ORLY) and The Pep Boys - Manny, Moe & Jack (NYSE: PBY), is scheduled for before the market opens on Tuesday. Aside from the AutoZone earnings report, it should be said that Advance Auto Parts, Inc reported Q1 2014 earnings on May 15th (results were better than expected and they upped guidance); O'Reilly Automotive Inc reported Q1 2014 earnings on April 24th (results topped expectations); and The Pep Boys reported Q4 2013 earnings on April 15th and will report Q1 2014 earnings on June 10th (PBY reported a surprise loss as tire pricing negatively hit revenue). However and given the current uncertain economy that is keeping most consumers in their old cars, you would think that auto parts retailers in general would all be doing well.

What Should You Watch Out for With the AutoZone, Inc Earnings Report?

First, here is a quick recap of AutoZone's recent earnings history from Yahoo! Finance:

Earnings HistoryMay 13Aug 13Nov 13Feb 14

EPS Est	7.21	10.34	6.28	5.55
EPS Actual	7.27	10.42	6.29	5.63
Difference	0.06	0.08	0.01	0.08
Surprise %	0.80%	0.80%	0.20%	1.40%

 

In early March, AutoZone reported higher than expected quarterly sales and earnings, but shares fell because operating expenses rose 9% to about $700 million. AutoZone reported a 7.3% net sales increase to $2.0 billion, a domestic same store sales increase of 4.3% and a net income increase of 9.4% to $192.8 million. The Chairman/CEO commented:

"We are pleased to report our thirtieth consecutive quarter of double digit earnings per share growth. The credit for this accomplishment goes to our passionate and dedicated AutoZoners across the globe who always put our customers first! During our second quarter, much of the U.S. experienced extreme weather conditions, and those weather patterns accelerated our growth in certain failure related hard part categories while our deferrable maintenance categories were challenged. We are continuing to test a variety of initiatives focused on improving inventory availability. One of the key initiatives is in the implementation phase, and while it is very early, we are pleased with our progress to date. The other tests are ongoing and it will take several more quarters before we determine our next steps."

This time around and according to the Yahoo! Finance analyst estimates page, the consensus expects revenue of $2.33B and EPS of $8.44 – slightly down from the EPS consensus of $8.45 expected thirty days ago and up from the EPS consensus of $8.41 expected ninety days ago.

On the news front, it was reported Thursday that Cleveland Research sees AutoZone's Q3 comp sales trends and earnings are tracking ahead of consensus driven by DIY momentum and commercial business. For that reason, they raised their Q3 EPS estimate to $8.50 verses a consensus of $8.46 and FY14 to $31.58 verses a consensus of $31.52.

On Wednesday, it was reported that AutoZone June call option implied volatility is at 21, July is at 20, September is at 18 and December is at 17 verses a 26-week average of 19. This suggests slightly large near term price movement into the earnings report. 

What do the AutoZone, Inc Charts Say?

The latest technical chart for AutoZone does show a slight downward trend since last February:

And while The Pep Boys has given a rather flat performance since the end of the recession, AutoZone, Advance Auto Parts, Inc and O'Reilly Automotive Inc have all been giving investors a great performance:

On the techncial chart side, Advance Auto Parts, Inc has produced a multiple top, O'Reilly Automotive is in a slight downtrend and The Pep Boys appears stuck in reverse:

What Should Be Your Next Move?

Traders might want to take a closer look at the AutoZone options trading activities. However, I don't see any reason for long term investors to be nervous as AutoZone heads into earnings.

5 Best Income Stocks To Own Right Now

Canadian policymakers are worried about their economy’s dependence on the country’s overleveraged consumers. Consumers have been doing much of the heavy lifting the past few years, and as a result, debt as a percentage of household income remains near an all-time high, which suggests that the economy’s reliance on consumer spending is unsustainable.

As such, Bank of Canada (BoC) Governor Stephen Poloz hopes the economy will eventually shift back toward growth via exports and the resulting business investment that usually follows. However, based on Canada’s latest trade data, which we unpack in the forthcoming issue of Canadian Edge, this transition remains elusive.

Complicating the situation is that, according to Mr. Poloz, the linkage between US economic growth and Canadian export activity has been weaker than in the past. This relationship is of paramount importance because the US absorbs the vast majority of Canada’s exports of goods and services. In 2012, for instance, the US was the destination for 70.3 percent, or CAD384 billion, of Canada’s exports, according to data from Statistics Canada.

5 Best Income Stocks To Own Right Now: Dorman Products Inc.(DORM)

Dorman Products, Inc. supplies automotive replacement parts, fasteners, and service line products primarily for the automotive aftermarket. The company offers approximately 128,000 products comprising original equipment dealer parts, which include intake manifolds, exhaust manifolds, oil cooler lines, window regulators, radiator fan assemblies, power steering pulleys, and harmonic balancers; and replacement parts, such as window handles and switches, door hardware, interior trim parts, headlamp aiming screws and retainer rings, radiator parts, battery hold-down bolts and repair kits, valve train parts, and power steering filler caps. It also provides application specific and general automotive hardware, such as body hardware, general automotive fasteners, oil drain plugs, and wheel hardware; a selection of electrical connectors, wires, tools, testers, and accessories; and a line of home hardware and home organization products designed for retail merchandisers. In addition, the company offers a brake and clutch program; remanufactured automotive replacement parts, such as transfer case modules and instrument clusters; and heavy duty aftermarket parts for class 4-8 heavy vehicles, including coolant tubes, door handles and other body parts, fluid reservoirs, headlights and lighting, hood components, window regulators, and wiper transmissions. It sells its products under the OE Solutions, HELP!, AutoGrade, FirstStop, Conduct-Tite!, Pik-A-Nut, and HD Solutions brand names through automotive aftermarket retailers; national, regional, and local warehouse distributors; specialty markets; and salvage yards in the United States, Mexico, Europe, the Middle East, Asia, and Canada. The company, formerly known as R&B, Inc., was founded in 1978 and is headquartered in Colmar, Pennsylvania.

Advisors' Opinion:

• [By Seth Jayson]

  Calling all cash flows
  When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Dorman Products (Nasdaq: DORM  ) , whose recent revenue and earnings are plotted below.

5 Best Income Stocks To Own Right Now: Stanley Black & Decker Inc.(SWK)

Stanley Black & Decker, Inc. manufactures tools and engineered security solutions worldwide. The company?s Security segment provides a range of mechanical and electronic security products and systems, as well as various security services consisting of security integration systems, software, and related installation, maintenance, monitoring services; automatic doors, door closers, and exit devices; healthcare storage and supply chain solutions; patient protection products; hardware; and locking mechanisms. This segment sells its products to retailers; educational, financial, and healthcare institutions; and commercial, governmental, and industrial customers through direct sales forces and third party distributors. Its Industrial segment offers mechanics tools and storage systems, including wrenches, sockets, electronic diagnostic tools, tool boxes, and industrial storage and retrieval systems; engineered healthcare storage and retrieval systems; hydraulic tools and accessor ies; plumbing, heating, and air conditioning tools; assembly tools and systems; and specialty tools. This segment sells its products to industrial customers through third party distributors and direct sales forces. The company?s Construction & Do-It-Yourself segment manufactures hand tools, including measuring and leveling tools, planes, hammers, demolition tools, knives and blades, saws, chisels, and consumer tackers; consumer mechanics tools; storage units comprising plastic and metal tool boxes; and pneumatic tools and fasteners for use in construction, remodeling, furniture making, pallet and manufacturing applications. This segment sells its products to professional end users and consumers through retailers, including home centers, mass merchants, hardware stores, and retail lumber yards. The company was formerly known as The Stanley Works and changed its name to Stanley Black & Decker, Inc. in March 2010. Stanley Black & Decker was founded in 1843 and is based in New B ritain, Connecticut.

Advisors' Opinion:

• [By Laura Brodbeck]

  Wednesday

  Earnings Expected From: Bank of New York Mellon Corporation (NYSE: BK), Stanley Black & Decker, Inc. (NYSE: SWK), US Bancorp (NYSE: USB), Bank of America Corp (NYSE: BAC), Pepsico, Inc. (NYSE: PEP), American Express Company (NYSE: AXP), eBay Inc. (NASDAQ: EBAY) Economic Releases Expected: US Beige Book, Canadian manufacturing sales, US CPI

  Thursday

• [By Rich Smith]

  This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, our headlines feature a pair of downgrades, for toolmaker Stanley Black & Decker (NYSE: SWK  ) and electrical equipment maker EnerSys (NYSE: ENS  ) alike. But the news isn't all bad, so before we address those two, let's take a look at why one analyst thinks that...

• [By Mike Deane]

  Stanley Black & Decker, Inc. (SWK) reported its fourth quarter earnings early on Friday morning, posting results that beat both revenue and earnings estimates.

  SWK�� Earnings in Brief

  Stanley Black & Decker reported fourth quarter revenues of $2.9 billion, up 9% from last year’s Q4 revenue of $2.7 billion. Net earnings for the quarter came in at $38.5 million, up from last year’s Q4 net income of $36.1 million. SWK’s EPS for the quarter was reported at 41 cents, but after excluding one-time charges, diluted EPS for Q4 came in $1.32 The company was able to beat analysts’ estimates of $1.30 EPS on revenues of $2.87 billion. For the full year, SWK reported reported diluted EPS of $4.98 on revenues of $11 billion.

  CEO Commentary

  SWK’s chairman and CEO, John F. Lundgren Chairman, commented on the company’s earnings: ��uring 2013 we made significant progress driving organic growth throughout the organization and the fourth quarter was no exception as the momentum continued from our organic growth initiatives. CDIY and Industrial delivered strong top and bottom line growth in spite of FX headwinds and on-going challenging global market conditions. The Security segment�� margin recovery is underway with notable improvement in North America and actions to improve Europe�� margins in place.

  ��s we move into 2014 it is important to note that our long-term strategy and financial objectives remain intact. We are, however, focused on executing previously announced operating and capital allocation actions to boost returns in the near term. These actions demonstrate our commitment to drive sustainable improvements to the Company�� cash flow return on investment and drive shareholder value.��/p>

  SWK�� Dividend

  Stanley Black & Decker did not announce a change to its quarterly payout in its earnings release. The company announced a raise to its dividend in July, boosting its quar

• [By Jim Jubak]

  Blankfein's less than confident tone, of course, raises that issue at Goldman, but you can see it even more clearly in Stanley Black & Decker's (SWK) third quarter report from October 16, before the market opened in New York. On the news, the shares fell 14.25% on the day, as the company missed on revenue for the quarter, and then lowered guidance for the full 2013 year that ends with the December quarter. The new guidance looks for earnings per share of $4.90 to $5.00, well below the company's previous guidance of $5.40 to $5.65.

Top Performing Stocks To Watch Right Now: Nintendo Co Ltd (NTDOF)

Nintendo Co., Ltd. is mainly engaged in the development, manufacture and sale of entertainment products in home entertainment field. The Company's main products include leisure machines such as portable and console game machines and software, as well as trump and Carta (Japanese-style playing cards). As of March 31, 2013, the Company had 29 subsidiaries and five associated companies. Advisors' Opinion:

• [By MARKETWATCH]

  LOS ANGELES (MarketWatch) -- Stocks in Japan started with losses Friday, the final session before the release of the closely watched U.S. jobs report later in the day. The Nikkei Stock Average (JP:NIK) shed 0.3% to 15,836.37, as the yen edged higher against the U.S. dollar overnight, and the broader Topix gave up 0.5%. Tech issues were mostly lower, including a 3.3% pullback in Trend Micro Inc. (JP:4704) (TMICY) , and a 2.7% decline in Nintendo Co. (JP:7974) (NTDOF) . Nintendo shares rallied Thursday after China temporarily lifted a ban on manufacturing and selling video game consoles within in the country. But among Friday's best performers were shares of Fast Retailing Co. (JP:9983) (FRCOF) , up 4.4% after the company posted a nearly 9% rise in its fiscal first-quarter net profit to 楼41.85 billion ($399 million). Sales were driven by a nearly 80% gain in Fast Retailing's overseas sales at Uniqlo stores.

• [By Parija Kavilanz]

  The retailer said the service will accept unlimited number of games for popular consoles, including Sony (SNE) Playstation, Nintendo (NTDOF)'s Wii and Microsoft's XBOX as long as they aren't damaged and are in their original packaging.

5 Best Income Stocks To Own Right Now: Acadia Realty Trust (AKR)

Acadia Realty Trust (the Trust), incorporated on March 04, 1993, is a real estate investment trust (REIT). The Trust is focused on the ownership, acquisition, redevelopment, and management of retail properties and urban/infill mixed-use properties with a retail component located primarily in barrier-to-entry, supply constrained, densely-populated metropolitan areas in the United States along the East Coast and in Chicago. Its primary objective is to acquire and manage commercial retail properties. It operates in four segments: Core Portfolio, Opportunity Funds, Notes Receivable and Other. The Trust also has private equity investments in other retail real estate related opportunities, in which it has a minority interest. As of December 31, 2012, the Trust controlled 99% of the Operating Partnership as the sole general partner. During the year ended December 31, 2012, the Company sold 12 of the 14 self-storage properties with two properties remaining under contract.

The Company owns a 22.2% interest in an approximately one million square foot retail portfolio (the Brandywine Portfolio) located in Wilmington, Delaware, a 49% interest in a 311,000 square foot shopping center located in White Plains, New York (Crossroads) and a 50% interest in an approximately 28,000 square foot retail portfolio located in Georgetown, Washington D.C. (the Georgetown Portfolio). These investments are accounted for under the equity method. Through Mervyns I and Mervyns II, the Company invested in a consortium to acquire Mervyns, consisting of 262 stores (REALCO) and its retail operations (OPCO), from Target Corporation.

As of December 31, 2012, the Company operated 100 properties, which the Company owns or has an ownership interest in, within its Core Portfolio or within its Opportunity Funds. Its Core Portfolio consists of those properties either 100% owned by, or partially owned through joint venture interests by the Operating Partnership, or subsidiaries thereof, not including those properties ow! ned through its Opportunity Funds. These 100 properties primarily consist of urban/street retail, dense suburban neighborhood and community shopping centers and mixed-use properties with a retail component. The properties the Company operates are located primarily in barrier-to-entry, densely-populated metropolitan areas in the United States along the East Coast and in Chicago. There are 72 properties in its Core Portfolio totaling approximately 5.3 million square feet. Fund I has three remaining properties comprising approximately 0.1 million square feet. Fund II has six properties, four of which (representing 0.6 million square feet) are operating, one is under construction, and one is in the design phase. Fund III has 14 properties, nine of which (representing 1.7 million square feet) are operating and five of which are in the design phase. Fund IV has five properties, four of which are operating with one under design. The majority of its operating income is derived from rental revenues from these 100 properties, including recoveries from tenants, offset by operating and overhead expenses.

The Company�� Core Portfolio consists primarily of urban/street retail properties and neighborhood and community shopping centers located in barrier-to-entry supply constrained markets. As of December 31, 2012, there are 72 operating properties in Its Core Portfolio totaling approximately 5.3 million square feet of gross leasable area (GLA). The Core Portfolio properties are located in 12 states and the District of Columbia and primarily consist of urban/street retail, dense suburban neighborhood and community shopping centers and mixed-use properties with a retail component. Its shopping centers are predominately anchored by supermarkets or value-oriented retail. The properties are diverse in size, ranging from approximately 3,000 to 875,000 square feet and as of December 31, 2012, were, in total, 94% occupied. As of December 31, 2012, the Company owned and operated 20 properties totaling approximat! ely 2.5 m! illion square feet of GLA in its Opportunity Funds, excluding eight properties under redevelopment. In addition to shopping centers, the Opportunity Funds have invested in mixed-use properties, which generally include retail activities. The Opportunity Fund properties are located in eight states and the District of Columbia and as of December 31, 2012, were, in total, 88% occupied.

As of December 31, 2012, within its Core Portfolio and Opportunity Funds, the Company had approximately 650 leases. A majority of its rental revenues were from national retailers and consist of rents received under long-term leases. These leases generally provide for the monthly payment of fixed minimum rent and the tenants' pro-rata share of the real estate taxes, insurance, utilities and common area maintenance of the shopping centers. During the year ended December 31, 2012, certain of its leases also provide for the payment of rent based on a percentage of a tenant's gross sales in excess of a stipulated annual amount, either in addition to, or in place of, minimum rents. Minimum rents, percentage rents and expense reimbursements accounted for approximately 92% of its total revenues.

Three of its Core Portfolio properties and five of its Opportunity Fund properties are subject to long-term ground leases in which a third party owns and has leased the underlying land to the Company. The Company pays rent for the use of the land and is responsible for all costs and expenses associated with the building and improvements at all eight locations. During 2012, no individual property contributed in excess of 10% of its total revenues.

Advisors' Opinion:

• [By Marc Bastow]

  Retail properties real estate investment trust Acadia (AKR) raised its quarterly dividend 9.5% to 23 cents per share, payable on Jan. 15 to shareholders of record as of Dec. 15.
  AKR Dividend Yield: 3.51%
  

5 Best Income Stocks To Own Right Now: Atlas Pipeline Partners L.P.(APL)

Atlas Pipeline Partners, L.P. engages in gathering and processing natural gas in the Mid-Continent and Appalachia regions; and transporting natural gas liquids (NGL) in the Mid-Continent region. The company owns and operates approximately 9,100 miles of intrastate natural gas gathering systems located in Oklahoma, Kansas, Texas, and Tennessee that gather gas from wells and central delivery points, and deliver natural gas to the company?s natural gas processing plants, as well as to the third-party pipelines; approximately 100 miles of active natural gas gathering systems located in Tennessee; and 7 natural gas processing plants with an aggregate capacity of approximately 610 million cubic feet per day in Oklahoma and Texas. It provides natural gas gathering and processing services in the Permian, Anadarko, and Appalachian Basins. The company also owns approximately 2,200 mile common-carrier pipeline system that transports NGLs from New Mexico and Texas to Mont Belvieu, Te xas. Atlas Pipeline Partners, L.P. was founded in 1999 and is based in Moon Township, Pennsylvania.

Advisors' Opinion:

• [By Eric Volkman]

  Atlas Pipeline Partners (NYSE: APL  ) has completed an agreement to acquire TEAK Midstream, a privately owned company active in the massive Eagle Ford Shale oil and gas play in Texas. The price is $1 billion in cash.

• [By Rich Duprey]

  Midstream oil and gas MLP�Atlas Pipeline Partners (NYSE: APL  ) announced yesterday its second-quarter distribution of $0.62 per unit, a 5% increase over the payout made last quarter of $0.59 per unit and up 11% year over year.

• [By Jonas Elmerraji]

  Up first is natgas pipeline stock Atlas Pipeline Partners (APL). Natural gas spot prices have sported some pretty lackluster performance so far in 2013, tumbling mid-single digits year-to-date, but not APL. APL has managed to claw its way nearly 22% higher since the calendar flipped over to January, and it's positioned for even better performance for the rest of the year.

  APL is currently forming an ascending triangle pattern, a bullish setup that's formed by horizontal resistance above shares at $39.25 and uptrending support to the downside. Basically, as APL gets bounced in between those two technical levels, it's getting squeezed closer and closer to a breakout above resistance. When that happens, traders have their buy signal.

  Whenever you're looking at any technical price pattern, it's critical to think in terms of those buyers and sellers. Ascending triangles and other pattern names are a good quick way to explain what's going on in a stock, but they're not the reason it's tradable. Instead, it all comes down to supply and demand for shares.

  That resistance level at $290 is a price where there has been an excess of supply of shares; in other words, it's a place where sellers have been more eager to step in and take gains than buyers have been to buy. That's what makes a breakout above $290 so significant -- the move means that buyers are finally strong enough to absorb all of the excess supply above that price level.

  Wait for $290 to get taken out before you buy.

• [By Rick Munarriz]

  Atlas Pipeline Partners (NYSE: APL  ) is also fueling its disbursements. The midstream natural gas specialist's new rate of $0.59 per unit marks the tenth time over the past 11 quarters that Atlas Pipeline Partners has boosted its payout.

3 Diversified Utilities Stocks to Sell Now

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The ratings of three diversified utilities stocks are down this week, according to the Portfolio Grader database. Each of these rates a “D” (“sell”) or “F” overall (“strong sell”).

5 Best Dividend Stocks For 2015

TECO Energy, Inc. () ratings are on the decline this week as the company earns an F (“strong sell”). Last week, it received a D (“sell”). TECO Energy is an energy-related holding company with businesses engaged in regulating electric and gas utility operations, coal mining, and unregulated electric generation. In Portfolio Grader’s specific subcategory of Sales Growth, TE also gets an F. .

Alliant Energy Corporation () is on the decline this week, earning a D (“sell”) after receiving a C (“hold”) last week. Alliant Energy provides regulated electricity and natural gas services to residential, commercial, and industrial customers in the Midwest region of the United States. The stock also gets an F in Cash Flow. Shares of the stock have been changing hands at an unusually rapid pace, twice the rate of the week prior. .

Slipping from a C to a D rating, DTE Energy Company () takes a hit this week. DTE Energy provides electricity and natural gas sales, distribution and storage services throughout southeastern Michigan. .

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

Sulzberger denies sexism played role in firing…

Arthur Sulzberger Jr., publisher of The New York Times, denied Saturday that sexism played a role in his decision to fire Jill Abramson as the paper's executive editor and said he made the move because she had lost the support of her senior management colleagues.

"I concluded that her management of the newsroom was simply not working out," he wrote. "During her tenure, I heard repeatedly from her newsroom colleagues, women and men, about a series of issues, including arbitrary decision-making, a failure to consult and bring colleagues with her, inadequate communication and the public mistreatment of colleagues."

His public statement on the abrupt termination that occurred Thursday appears to be an attempt to quash growing speculation among media watchers, fanned by anonymous leaks and loud reiterations in social media, about why she was let go.

"Perhaps the saddest outcome of my decision to replace Jill Abramson as executive editor of The New York Times is that it has been cast as an example of the unequal treatment of women in the workplace," he said, in a statement. "Rather than accepting that this was a situation involving a specific individual who, as we all do, has strengths and weaknesses, a shallow and factually incorrect storyline has emerged."

Hot Airline Companies To Invest In Right Now

Ken Auletta, a media critic of The New Yorker who once wrote a profile of Abramson, reported late Thursday that Abramson was upset that she was paid less than her predecessor and confronted Sulzberger about the pay gap.

The Times has denied that she was paid less and Sulzberger repeated the denial. "Fueling this has been persistent but incorrect reports that Jill's compensation package was not comparable with her predecessor's. This is untrue," Sulzberger said. "Jill's pay package was comparable with Bill Keller's; in fact, by her last full year as executive editor, it was 10% highe! r than his. Equal pay for women is an important issue in our country -- one that The New York Times often covers."

Sulzberger said Thursday that Abramson, who has a reputation for a hard-charging personality, was fired for issues related to her "management" style.

Abramson was warned by Sulzberger of the perceived shortcomings, and she acknowledged that "there were issues," he said. "It became clear, however, that the gap was too big to bridge and ultimately I concluded that she had lost the support of her masthead colleagues and could not win it back."

Trade These 5 Airline Stocks for Flyaway Gains in 2014

BALTIMORE (Stockpickr) -- "The best way to become a millionaire is to start as a billionaire and buy an airline." That old joke has been the common wisdom in recent years when it's come to airline investing. Airlines have huge cost burdens, they face major regulatory pressures, and they go bankrupt left and right.

>>5 Rocket Stocks Ready for Blastoff

That's why this year's airline rally has caught so many people by surprise. In a year when few stocks are performing well, the airline industry has been a high flyer, climbing around 15% since the calendar flipped to January. Zoom out to last May, and those gains climb to more than 30%.

Airline industry gains aren't some fluke. Instead, the airline business is the poster child for a cyclical business; after the painful restructurings of 2008, it's no surprise that airlines are faring well coming out of a major cyclical low, even in the face of triple-digit oil prices.

That's why we're taking a closer look at the technical trading setups in five big airline stock charts today.

>>Sell These 5 Toxic Stocks Before It's Too Late

For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution.

Without further ado, let's take a look at five technical setups worth trading now.

United Continental Holdings

First up is United Continental Holdings (UAL), an airline name that's been one of the least inspiring performers year-to-date. After rallying hard to start January, UAL has spent the months since consolidating sideways, down around 15% from the high water mark shares set at the beginning of the year. But UAL could be getting ready to make up for that lost ground. In the short-term, shares are looking bullish again.

>>3 Stocks Breaking Out on Big Volume

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That's thanks to an ascending triangle setup that's been shaping up in shares of UAL since the last week of April. The pattern is formed by horizontal resistance above shares at $42 and uptrending support to the downside. Basically, as UAL bounces in between those two technically important levels, it's getting squeezed closer and closer to a breakout above that $42 price ceiling. When that happens, we've got a buy signal.

The short-term size of the price pattern in UAL comes with equally short-term trading implications. But the bullish move could be just enough to break shares of United Continental above the dashed trend line at the top of the chart. If that happens, we've got a secondary buying opportunity in this $15.5 billion airline.

UAL hasn't been the most attractive airline name in 2014, but that could be about to change.

Delta Air Lines

Delta Air Lines (DAL), on the other hand, has been one of the most attractive airline trades this year. Since the calendar flipped to January, Delta has rallied 40% -- and that's on top of the gains that this airline returned to investors last year. Now this stock is positioned for even higher ground; and you don't have to be an expert technical trader to see why.

>>4 Huge Stocks on Traders' Radars

For the last year, Delta has been bouncing higher in an uptrending channel, a pair of parallel trend lines that have given traders a very high probability range for shares to remain with. Put another way, an ideal buying opportunity has come up for DAL bulls every time this stock has bounced off of trend line support along the bottom of the channel. Trend channels are about as simple as trading patterns get: Up is good and down is bad. So, with DAL's chart pointing up and to the right, this is very much a "buy the dips stock."

Relative strength adds some important backup for a buy signal in Delta. That performance indicator has been in an uptrend since back in August, a signal that DAL is continually outperforming the S&P in good times and in bad ones.

Alaska Air Group

We're seeing the exact same setup in shares of Alaska Air Group (ALK), the $7 billion holding company that owns Alaska Airlines and Horizon Air. Like Delta, Alaska Air has been bouncing its way higher in a textbook trend channel. Now it makes sense to buy this stock's next bounce off of support.

>>5 Stocks Ready to Break Out

Waiting for a meaningful bounce off of support is crucial for two big reasons: It's the spot where shares have the furthest to move up before they hit resistance, and it's also the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong). Remember, all trend lines do eventually break, but by actually waiting for the bounce to happen first, you're ensuring ALK can actually still catch a bid along that line before you put your money on shares.

The 50-day moving average has been a good proxy for support on the way up. That makes it a logical place to keep a protective stop if you decide to buy here.

American Airlines Group

Since going public at the end of last year following its exit from bankruptcy protection, American Airlines Group (AAL) has been a spectacular performer. With its burdensome cost structure shed, shares have been free to rally 57% over that stretch of time. And they could be headed even higher this summer thanks to an inverse head and shoulders setup in shares.

>>Hedge Funds Hate These 5 Stocks -- Should You?

The inverse head and shoulders is a classic technical setup that indicates exhaustion among sellers. The pattern is formed by two swing lows that bottom out around the same level (the shoulders), separated by a bigger trough called the head; the buy signal comes on the breakout above the pattern's "neckline" level, currently right at $40.

Why all the significance at $40? It all comes down to buyers and sellers. Price patterns are a good quick way to identify what's going on in the price action, but they're not the reason a stock is tradable. Instead, the "why" comes down to basic supply and demand for American Airlines' stock.

The $40 neckline level is a price where there has been an excess of supply of shares; in other words, it's a spot where sellers have previously been more eager to step in and take gains than buyers have been to buy. That's what makes a breakout above $40 so significant -- the move means that buyers are finally strong enough to absorb all of the excess supply above that price level.

Momentum has been overbought for much of AAL's rally. That's because, contrary to popular belief, momentum extremes are better signals that a stock is trending than they are contrarian indicators. Expect AAL to go overbought again before the breakout.

Hawaiian Holdings

Last up is Hawaiian Holdings (HA), the holding company that owns Hawaiian Airlines. Like American, Hawaiian is currently forming an inverse head and shoulders pattern at the top of shares' recent price range. While the inverse head and shoulders is typically spotted at the end of a downtrend rather than near highs, the trading implications are exactly the same on a push through this stock's neckline.

The neckline level to watch in HA right now is $15.50.

Relative strength has maintained its uptrend in Hawaiian even while this name consolidated in the inverse head and shoulders pattern, a good indication that this small-cap stock is extremely well positioned heading into the summer. HA's ability to outperform the S&P 500 is a valuable commodity to have in your portfolio; it'll become even more valuable when shares breakout above $15.50.

Lest you think that the head and shoulders is too well known to be worth trading, the research suggests otherwise: a recent academic study conducted by the Federal Reserve Board of New York found that the results of 10,000 computer-simulated head-and-shoulders trades resulted in "profits [that] would have been both statistically and economically significant."

That's good reason to keep an eye on both HA and AAL this week.

To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:

>>5 Stocks Insiders Love Right Now

>>5 Stocks Set to Soar on Bullish Earnings

>>5 Big Stocks to Trade for Gains This Summer

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to

TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji

AstraZeneca Board Rejects Pfizer's 'Final' Offer

Best Freight Stocks To Own Right Now

Andrew Yates, AFP/Getty Images LONDON -- The board of AstraZeneca on Monday rejected the improved $119 billion takeover offer from U.S. drugmaker Pfizer, a decision that caused a sharp slide in the U.K. company's share price as many investors think it effectively brings an end to the protracted and increasingly bitter takeover saga. The board said in a statement that it "reiterates its confidence in AstraZeneca's ability to deliver on its prospects as an independent, science led business." Pfizer (PFE), which is the world's second-biggest drugmaker by revenue, has been courting No. 8 AstraZeneca (AZN) since January, arguing their businesses are complementary. On Sunday, it raised its stock-and-cash offer by 15 percent to $118.8 billion, or 70.73 billion pounds. That would be the richest acquisition ever among drugmakers and the third-biggest in any industry, according to figures from research firm Dealogic. AstraZeneca didn't take long to reject the new offer, its board arguing Pfizer is making "an opportunistic attempt to acquire a transformed AstraZeneca, without reflecting the value of its exciting pipeline" of experimental drugs. Because Pfizer said it won't raise its offer again or launch a hostile takeover bid over the heads of AstraZeneca's board, the prospect of a deal looks increasingly remote unless AstraZeneca shareholders urge a change of mind. Pfizer has said it hopes AstraZeneca's shareholders will push for a deal. "This has been going on for quite some time and we have been in very deep engagement over the whole of the weekend," AstraZeneca Chairman Leif Johansson told the BBC. "If Pfizer now says this is the final offer I have to believe what they say." Shareholders in AstraZeneca seemed to think a deal is now unlikely, with the company's share price slumping 11 percent to 43.15 pounds. Johansson said his management team had told Pfizer over the weekend that it would need to see a 10 percent improvement over the 53.50 pounds-per-share offer that was on the table at that time. He said Pfizer's latest offer represented only a "minor improvement" that fell short of the 10 percent needed. Though it has said its indicative offer is final, Pfizer has, under U.K. takeover rules, until 5 p.m. local time on May 26 to make a formal bid. If it doesn't, it can't make another offer for six months. Pfizer's offer comes amid a surge of other deals as drugmakers look to either grow or eliminate noncore assets to focus on their strengths. Those deals include Switzerland's Novartis (NVS) agreeing to buy GlaxoSmithKline's cancer-drug business for up to $16 billion, to sell most of its vaccines business to GSK for $7.1 billion, plus royalties, and to sell its animal health division to Eli Lilly (LLY). of Indianapolis for about $5.4 billion. Canada's Valeant Pharmaceuticals (VRX) has also made an unsolicited offer of nearly $46 billion for Botox-maker Allergan (AGN), which has turned it down, so far. Pfizer's latest offer increased the ratio of cash AstraZeneca shareholders would receive, from 33 percent to 45 percent. The latest offer would give them the equivalent of 55 pounds for each AstraZeneca share, split between 1.747 shares of the new company and 2.476 pence in cash. It said the offer represents a 45 percent premium to AstraZeneca's share price of 37.82 pounds on April 17, before rumors of the deal began circulating. Pfizer CEO Ian Read said the proposed combination would yield "great benefits to patients and science in the UK and across the globe." AstraZeneca has insisted Pfizer's offers significantly undervalue the company and its portfolio of experimental drugs. The company and British government officials also have raised concerns about the prospect of job cuts, facility closures and losing some of the science leadership in the U.K., where London-based AstraZeneca is the second-biggest drugmaker, behind GlaxoSmithKline (GSK). Pfizer has assured such cuts would be limited. It's promised to complete AstraZeneca's research and development hub in Cambridge. And it pledged to establish the new company's tax residence, but not headquarters, in England, which would significantly reduce its future tax rate. But layoffs would be inevitable in such a big merger, analysts say, and Pfizer has a track record of eliminating tens of thousands of jobs as a result of megadeals. While Pfizer is best known to the public for Viagra, cholesterol fighter Lipitor and other widely used medicines, in the pharmaceutical industry it's known for two other things: marketing muscle and mega mergers, which together have repeatedly propelled it to the top. Since 2000, it has made three acquisitions that have vaulted the company to No. 1 in revenue. It paid $111.8 billion for Warner-Lambert in 2000 to get the rights to Lipitor, then $59.8 billion for Pharmacia in 2003 and $68 billion for Wyeth in 2009, according to Dealogic. With this deal, Pfizer would then be the buyer in four of the 10 richest deals ever in the pharmaceutical industry. Each of those deals resulted in massive layoffs and closures of some medicine factories, research facilities and office buildings, with the cost-cutting boosting Pfizer's bottom line for a few years. Pfizer now wants to add to its medicine portfolio to boost revenue. The company slipped from No. 1 to No. 2 last year, behind Novartis, mainly because Lipitor got generic competition at the end of 2011, wiping out several billion dollars in annual sales. Pfizer also has sold off some units and reorganized as part of preparations to possibly break off another part of the company, something analysts have been urging it to do.

Teen takes initiative, spurs beverage firms to…

HATTIESBURG, Miss. — A Mississippi teen has grabbed the attention of multinational corporations twice in the past 16 months, persuading each to strip a controversial chemical from their sports and citrus-tinged drinks.

The chemical, brominated vegetable oil, has been used as a food additive in the soft-drink industry since the early 1930s to keep individual beverage ingredients from separating. The U.S. Food and Drug Administration considers it safe in extremely small amounts; the controversy comes from the bromine, an ingredient also in brominated flame retardants that has been shown to build up in the body and cause neurological problems.

The European Union and Japan have banned brominated vegetable oil in foods.

"I was drinking an orange Gatorade and I saw BVO, and I'd never heard of it," said Sarah Kavanagh, now a junior at Hattiesburg High School here. "When I Googled it, what I saw was not very good."

Sarah, who has been a vegan since junior high, decided BVO was not something she wanted to drink.

STORY: Coke, Pepsi dropping controversial BVO from all drinks
STORY: Gatorade to remove controversial ingredient

So she started a petition on Change.org in November 2012 asking Pepsi to remove the substance from Gatorade. She got more than 200,000 supporters, and by January 2013, PepsiCo (PEP), which owns the Gatorade brand, announced it would eliminate BVO from the iconic sports drink and replace it with sucrose acetate isobutyrate, a different emulsifier considered generally safe as a food additive. The FDA had taken BVO off of its list of additives generally recognized as safe in 1970.

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A month later, Sarah started her second petition, this time to ask Coca-Cola (KO) to take BVO out of its drinks such as Fresca, Fanta and Powerade, and won her second battle earlier this month when the conglomerate said it is removing the ingredient from a! ll of its drinks to be consistent in the ingredients it uses worldwide. PepsiCo also announced it would work to remove BVO from the remainder of its products including Mountain Dew and Amp energy drinks.

I'm a girl from a small town in Mississippi, and I'm only 17. It shows with the resources we have today, you can really do anything you want.

Sarah Kavanagh, Hattiesburg, Miss.

Coke and Pepsi both have couched their decisions to discontinue BVO as one intended to streamline production in the U.S., Europe and Asia, not as a safety precaution. They also have not provided a timeline on when they expect the removal to be complete.

A company or other entity that is the target of a petition on Change.org automatically receives a notice about the campaign. Sarah said she had previously contacted both companies repeatedly, primarily via e-mail.

She said she received a boilerplate acknowledgement from Pepsi but nothing from Coke.

"I'd seen a lot of other Change.org petitions that had had success, so I didn't necessarily expect it to happen," she said. "I hoped they would listen to what we had to say.

"I think the thing that holds a lot of people back is they think that they can't do it," Sarah said. "I'm a girl from a small town in Mississippi, and I'm only 17. It shows with the resources we have today, you can really do anything you want."

Various flavors of Powerade sports drink sit for sale on a refrigerator shelf in a store on May 5, 2014, in New York City. Coca-Cola has announced it will remove brominated vegetable oil from Powerade after a similar move by PepsiCo's Gatorade last year.(Photo: Andrew Burton, Getty Images)

What is BVO?

Brominated vegetable oil is a synthetic chemical! that is ! created when vegetable oil is bonded to the element bromine. Health concerns about BVO stem from the bromine, the element found in brominated flame retardants.

• Use: Emulsifier in citrus drinks.

• Health risks: Negative effects on brain development, memory loss, rashes, reduction in fertility, disruption of normal thyroid function, possible cause of cancer.

• Found in: Citrus soft drinks including Mountain Dew, Squirt, Fresca and Fanta. It's also in sports drinks like Powerade and Gatorade.

Source: WebMD

Ralph Lauren Corp. (RL) Q4 Earnings Preview: Clearance Sales To Hurt Margins?

Ralph Lauren Corp (NYSE:RL) will release its Fourth Quarter and Full Year Fiscal 2014 results for the period ended March 29, 2014 at approximately 8:00 A.M. Eastern, Friday, May 9, 2014. At 9:00 A.M. Eastern, on the same day, the Company will host a conference call for analysts, investors and other interested parties.

Wall Street anticipates that the clothing company will earn $1.63 per share for the quarter, which is $0.22 more than last year's profit of $1.41 per share. iStock expects Ralph Lauren to beat Wall Street's consensus number. The iEstimate is $1.68, a nickel more than expected.

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Sales, like earnings, are expected to increase, rising by 11.3% year-over-year (YoY). RL's consensus revenue estimate for Q4 is $1.83 billion, more than last year's $1.64 billion.

Ralph Lauren Corporation is engaged in the design, marketing and distribution of products, including men's, women's and children's apparel, accessories (including footwear), fragrances and home furnishings. The Company operates in three segments: Wholesale, Retail and Licensing.

Beating estimates is nothing new for the fashion company. Ralph Lauren's profits have exceeded Wall Street's consensus number 14 of the last 16 quarters. EPS were on-target for the two outstanding quarterly checkups. On average, RL actual profits bypass projected EPS by $0.23 with a range of $0.11 to $0.50 more than forecasted. That's makes the iEstimate look small by comparison.

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For the most part, RL's earnings-driven, price sensitivity has tracked the bullish nature of earnings announcements. The stock price moved higher 10 of the last 16 quarters, gaining anywhere from 2.2% to 13% with an average increase of 7.28%. Meanwhile, RL's price backed up a half-dozen times by an average of 3.93%.

Unfortunately for shareholders, May has been the worst performing quarter. Shares lost ground three of the last four emerald month announcements, dropping -2.9%, -4.4%, and -4.9% in the days surrounding the news. Once, May 2012, RL managed a 3.8% gain.

For most retailers, margins are the key to bullish or bearish surprises. As it is with RL, we do have some concerns in this regard for Friday morning. In Q3, the cost of goods sold increased 8.34% versus sales gains of 3.08%.  It might now sound like too big of a deal, but it's a $40 million difference had costs increased at the same pace as sales. It works out to $0.45 per share.

RL's balance sheet has some margin eyesores, too. Inventory was up 35.6% during the third quarter, which could mean clearance sales in Q4 i.e. smaller profit margins. Additionally, some customers might be slow to pay their bills as account receivables climbed 25.98%.

Overall: Ralph Lauren Corp (NYSE:RL) history and iEstimate suggest another bullish surprise is coming. However, RL's financial statements raise some concerns. The may not show up this quarter, but they will eventually if not corrected. 

5 Hated Earnings Stocks You Should Love

DELAFIELD, Wis. (Stockpickr) -- Short-sellers hate being caught short a stock that reports a blowout quarter. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions to avoid big losses. Even the best short-sellers know that it's never a great idea to stay short once a bullish earnings report sparks a big short-covering rally.

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This is why I scan the market for heavily shorted stocks that are about to report earnings. You only need to find a few of these stocks in a year to help enhance your portfolio returns -- the gains become so outsized in such a short time frame that your profits add up quickly.

That said, let's not forget that stocks are heavily shorted for a reason, so you have to use trading discipline and sound money management when playing earnings short-squeeze candidates. It's important that you don't go betting the farm on these plays and that you manage your risk accordingly. Sometimes the best play is to wait for the stock to break out following the report before you jump in to profit off a short squeeze. This way, you're letting the trend emerge after the market has digested all of the news.

Of course, sometimes the stock is going to be in such high demand that you risk missing a lot of the move by waiting. That's why it can be worth betting prior to the report -- but only if the stock is acting technically very bullish and you have a very strong conviction that it is going to rip higher. Just remember that even when you have that conviction and have done your due diligence, the stock can still get hammered if The Street doesn't like the numbers or guidance.

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If you do decide to bet ahead of a quarter, then you might want to use options to limit your capital exposure. Heavily shorted stocks are usually the names that make the biggest post-earnings moves and have the most volatility. I personally prefer to wait until all the earnings-related news is out for a heavily shorted stock and then jump in and trade the prevailing trend.

With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week.

J.C. Penney

My first earnings short-squeeze trade idea is department store player J.C. Penney (JCP), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect J.C. Penney to report revenue of $2.71 billion on a loss of $1.25 per share.

Recently, Sterne Agee's Charles Grom said: "While we remain neutral and concerned structurally on J.C. Penney's position in the retail food chain, we see a scenario where the stock could rally in the near term. Improving trends sequentially in the first quarter/second quarter to date coupled with significantly higher gross profit margin year-over-year could boost better than expected results. Layer in an upbeat conference call and the ingredients are there for a move higher in the short term."

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The current short interest as a percentage of the float for J.C. Penney is extremely high at 30%. That means that out of the 290.61 million shares in the tradable float, 90.89 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then shares of JCP could easily explode sharply higher post-earnings as the bears jump to cover some of their bets.

From a technical perspective, JCP is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending over the last month, with shares moving higher from its low of $7.04 to its intraday high of $9.50 a share. During that uptrend, shares of JCP have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of JCP within range of triggering a major breakout trade post-earnings.

If you're bullish on JCP, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some past overhead resistance at $10.30 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 22.36 million shares. If that breakout hits, then JCP will set up to re-test or possibly take out its next major overhead resistance levels at $13 to $14 a share, or even $15 a share.

I would simply avoid JCP or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 50-day moving average of $8.49 a share high volume. If we get that move, then JCP will set up to re-test or possibly take out its next major support levels at $8.03 to $7.50 a share. Any high-volume move below those levels will then give JCP a chance to re-test or possibly take out $7 a share. Traders should make note that a large gap sits right below $7 a share, so JCP could drop sharply if it moved into that gap with heavy downside volume.

Kate Spade

Another potential earnings short-squeeze play is premium brand apparel and accessories marketer and designer Kate Spade (KATE), which is set to release its numbers on Wednesday before the market open. Wall Street analysts, on average, expect Kate Spade to report revenue $201.85 million on a loss of 4 cents per share.

Recently, Nomura Securities issued a buy rating on shares of KATE with a price target of $41 per share, citing double-digit gains in North American retail expansion and wholesale growth as well as international expansion.

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The current short interest as a percentage of the float for Kate Spade & Company is notable at 6%. That means that out of the 122.92 million shares in the tradable float, 7.39 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 6.8%, or by about 472,000 shares. If the bears get caught pressing their bets into a bullish quarter, then shares of KATE could easily soar sharply higher post-earnings as the shorts rush to cover some of their positions.

From a technical perspective, KATE is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has been uptrending a bit over the last month, with shares moving higher from its low of $31.27 to its recent high of $36.32 a share. During that uptrend, shares of KATE have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of KATE within range of triggering a major breakout trade post-earnings.

If you're in the bull camp on KATE, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at its 50-day moving average of $35.76 to some more near-term resistance at $36.32 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 2.14 million shares. If that breakout hits, then KATE will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $40.75 a share.

I would simply avoid KATE or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $33.24 to $32.77 a share with high volume. If we get that move, then KATE will set up to re-test or possibly take out its next major support levels at $31.27 to its 200-day moving average of $30.22 a share. If that 200-day gets taken out with volume, then KATE could easily tag $28 to $27 a share.

Take-Two Interactive Software

Another potential earnings short-squeeze candidate is video game developer and publisher Take-Two Interactive Software (TTWO), which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect Take-Two Interactive Software to report revenue of $202.51 million on earnings of 10 cents per share.

Recently, Wedbush released a note to investors that said: "We expect a Q4 EPS upside from strong sales of Grand Theft Auto V, NBA 2K14, and digital including GTA Online. Our current estimates are for revenue of $210 million and EPS of 15 cents per share vs. consensus of $202 million and 10 cents per share, and guidance of $170-$200 million." The firm has a neutral rating on the stock with a $19 per share price target.

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The current short interest as a percentage of the float for Take-Two Interactive Software is pretty high at 12%. That means that out of the 79.01 million shares in the tradable float, 9.99 million shares are sold short by the bears. If this company can deliver the earnings news the bulls are looking for, then shares of TTWO could easily rip sharply higher post-earnings as the bears rush to cover some of their trades.

From a technical perspective, TTWO is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has been uptrending a bit over the last three months and change, with shares moving higher from its low of $16.40 to its recent high of $22.41 a share. During that move, shares of TTWO have been making mostly higher lows and higher highs, which is bullish technical price action. Shares of TTWO are now trending very close to triggering a big breakout trade post-earnings above some key near-term overhead resistance levels.

If you're bullish on TTWO, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $21.73 to $22.21 a share and then once it takes out its 52-week high at $22.41 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 2.10 million shares. If that breakout starts post-earnings, then TTWO will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $28 to $30 a share.

I would avoid TTWO or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $20.20 to $19.18 a share with high volume. If we get that move, then TTWO will set up to re-test or possibly take out its next major support level at its 200-day moving average of $18.64 a share.

Epizyme

Another earnings short-squeeze prospect is biopharmaceutical player Epizyme (EPZM), which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect Epizyme to report revenue of $8.48 million on a loss of 47 cents per share.

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The current short interest as a percentage of the float for Epizyme is extremely high at 23%. That means that out of the 10.58 million shares in the tradable float, 2.67 million shares are sold short by the bears. This is a large short interest on a stock with a very low tradable float. Any bullish earnings news could easily spark a sharp short-covering rally post-earnings as the bears rush to cover some of their bets.

From a technical perspective, EPZM is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been trending sideways for the last month and change, with shares moving between $18.75 on the downside and $24.50 on the upside. Shares of EPZM have started to bounce off the lower-end of its range of late and the stock is now starting to trend within range of triggering a breakout trade post-earnings above the upper-end of that recent range.

If you're bullish on EPZM, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $23.53 to $24.50 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 313,938 shares. If that breakout hits, then EPZM will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $29.19 a share to $29.50 a share. Any high-volume move above those levels will then give EPZM a chance to tag $33 to $34 a share.

I would simply avoid EPZM or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $20.49 to $19.91 a share with high volume. If we get that move, then EPZM will set up to re-test or possibly take out its next major support levels at $18.75 to its 52-week low of $18.10 a share. Any high-volume move below those levels will then push shares of EPZM into new 52-week-low territory, which is bearish technical price action.

GasLog

My final earnings short-squeeze play liquefied natural gas shipping player GasLog (GLOG), which is set to release numbers on Wednesday before the market open. Wall Street analysts, on average, expect GasLog to report revenue of $58.81 million on earnings of 17 cents per share.

The current short interest as a percentage of the float for GasLog stands at 4.3%. That means that out of the 38.17 million shares in the tradable float, 1.59 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 42.5%, or by about 475,000 shares. If the bears get caught pressing their bets into a strong quarter, then shares of GLOG could easily jump sharply higher post-earnings as the shorts move to cover some of their trades.

From a technical perspective, GLOG is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last six months, with shares moving higher from its low of $14.92 to its recent high of $28.89 a share. During that uptrend, shares of GLOG have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of GLOG within range of triggering a major breakout trade.

If you're in the bull camp on GLOG, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its all-time high at $28.89 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 1.15 million shares. If that breakout triggers post-earnings, then GLOG will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $35 to $40 a share.

I would avoid GLOG or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below its 50-day moving average of $25.19 a share to some more near-term support at $25 a share with high volume. If we get that move, then GLOG will set up to re-test or possibly take out its next major support levels at $23 to $20 a share.

To see more potential earnings short squeeze plays, check out the Earnings Short-Squeeze Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com.

You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.