June 1st - BOOM ELRC NTCT LAYN EGY
Cramer spoke about buying orphans...stocks that are small and not covered by many analysts. He mentioned 5 stocks that were cheap and orphans before and have since done extremely well. The stocks were ISRG WFMI CBH DGX CHS. The funny thing is that people are bidding these up and Cramer is just mentioning these to prove that orphan stocks work, they aren't really picks for tonight!
The 5 new orphan candidates are:
BOOM Dynamic Materials Corp.
ELRC Electro Rent Corp.
NTCT NetScout Systems Inc.
LAYN Layne Christensen Co.
EGY Vaalco Energy Inc.
BOOM
Closing Price: $28.21
After Hours Price: $29.00
Percent Increase: 2.8%
Trades on NASDAQ
Short %: 41.9%
Days to Cover: 2.5
Wow...look at that short %. That could cause some trouble tomorrow especially if BOOM wins and Cramer makes it the winner tomorrow. This could have current shorts very worried and force them to cover tomorrow causing an unpredictable price high.
ELRC
Closing Price: $16.01
After Hours Price: N/A
Percent Increase: N/A
Trades on NASDAQ
Short %: 3.0%
Days to Cover: 18.2
Can't see any after hours prices yet for this. Will have to check later. Very low average volume here explains the high days to cover for current shorts. With low volume it might help people get out of the stock if they are looking to get out. Hard to say without knowing how high it gets bid up.
NTCT
Closing Price: $8.15
After Hours Price: $8.60
Percent Increase: 5.5%
Trades on NASDAQ
Short %: 5.8%
Days to Cover: 10.1
A good cheap one here, but with some short interest on a low volume stock could cause some volatility and make it hard to time the high. Anything close to $9.00 might be good for a short around the 9:30am open but wait for the volume to slow.
LAYN
Closing Price: $28.75
After Hours Price: $29.12
Percent Increase: %1.3
Trades on NASDAQ
Short %: 6.5%
Days to Cover: 8.3
Similar short percentage and days to cover as NTCT but a bit more expensive. Not a huge % increase after hours so this one might get passed over due to its price compared to the other orphans. A lot of people will probably buy all 5 picks and hope that the winner gets bigger gains.
EGY
Closing Price: $7.23
After Hours Price: $7.67
Percent Increase: 6.1%
Trades on AMEX
Short %: 1.4%
Days to Cover: 1.1
This has the least current short percentage so that shouldn't come into play. This may be the safest one to short because of that, and its got a pretty nice price increase after hours.
The one thing that concerns me is if people all decide to hold onto their stocks in the hopes that their stock is named the winner and might get the benefit of another price pop. But the chances of all the current holders of these stocks watching Cramer is unlikely and a lot will probably sell into any gap up tomorrow....but again, some of those short percentages and days to cover on low volume stocks is something to watch out for.
posted by CramerTracker @ 6/01/2006
1 comments
Comments on "June 1st - BOOM ELRC NTCT LAYN EGY"
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Anonymous said ... (June 02, 2006 1:34 AM) :
post a commentThis should be interesting - but I think he will pick either BOOM or EGY based on the fact that the other three trade only around 100k shares a day. So whose going to email him about three unknown stocks?
Also I think he talks about EGY more than BOOM so there maybe more EGY fans out there who email him. But BOOM seem to be down alot recently just waiting to bounce and this maybe the catalyst.
I would definetly not short EGY or BOOM tomorrow - Maybe go long BOOM. Actually the safest play maybe to go long them an hour before close and then sell right before the close. I would think they would both go up the last hour.
Another strategy would be to short the other three an hour before the close and then cover at the open Monday AM. I think those will tank when they are not picked.
Lets see what happens