March 10th - MATK and FNSR

Cramer had 2 picks tonight that were "Short Worthy" in my opinion. I only have access to after market with stocks that trade on the NASDAQ and have only limited buying power so I also typically ignore stocks that are over the $30-35 dollar range. His first pick was MATK. Martek Bioscience The stock closed at $33.09 the day Cramer mentioned it and went to $34.83 after his mention, an increase of just over 5%. I set a "fake short" at $34.72 of 200 shares. I didn't actually short this one because I'm not too keen to hold a short over the weekend since anything can happen. Cramer also mentioned that he thinks they will have 2 big contracts coming their way very soon. Not to mention that this stock has a short interest of 33% of the float already. This means that this stock currently has a lot of people shorting it already. So 1/3 of the float (the total number of shares the company has outstanding) are currently held short. Visit ShortSqueeze.com to see the stats for MATK and its short position. The data on this page, from what I understand, is delayed, as the short data is only updated once a month.
And finally, this was in a price range that lets me only short 200 shares max, so the profit potential is slim if I am only looking for a .30 cent drop in share price. Still, I look for this to drop early on Monday for what might have been a quick buck. I will update Monday.

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The second pick was FNSR. Finisar Corp. This stock closed at $4.27 the day Cramer mentioned it. Unfortunately I can't short this once because my brokerage won't let me short stocks below $5 dollars. Its too bad because the stock went up over 8% after hours (to $4.62) and my buying power would allow me to short 1500 shares. With so many shares (for me, not for others with more investing money I'm sure) I would look for about a .10 cent drop in price to make a quick $150 dollars. Now, if this stock were to run up in the pre-market to $5.00 I would consider the short, but I honestly don't see that happening Monday morning. And I'm not really interested in the stock after the first day it trades after Cramer mentions it. I still like to watch these stocks that I can't short to see if the shorting theory holds true. In my research Cramer mentioned another <$5.00 stock (VTSS) and it went from $3.37 to $3.15 the next day during regular market hours. Again, not a huge drop, but for a stock this cheap you could control a large short position and make decent gains. I would like to point out a few things though. First, Cramer rarely mentions stocks this cheap. I think he might be afraid of it running too much and people getting burned. Not to mention, stocks are normally that cheap for a reason (not to say they can't rebound). Secondly, I think people react differently when the stock price is so low. I don't think they see a problem paying a dollar more then the closing price because they still think its cheap. But for a stock so cheap, paying up a dollar is a HUGE percentage. I would be afraid that these could be far more volatile because the large number of shares people could afford. Well, we will see tomorrow :)