November 2nd - WTS QSFT

Cramer's first segment highlighted Watts Water Technologies, Inc. (WTS) as yet another play on the shortage of water. In the past Cramer has recommended WTR and PNR which did not turn out too well.

Closing Price: $39.79
After Hours High: $40.72
Percent Increase at High: 2.3%
Price Level Off Point: $40.40
Percent Increase at Level Off Point: 1.5%
Trades on NYSE
Sector: Industrial Goods
Short %: 14.57%
Days to Cover: 18.6
% Held By Insiders: n/a
% Held By Institutions: n/a

Just outside the top side of the price range for shorting as this is now above $40. High short percentage, recent large run, and low average volume means this could be in a bit of a short squeeze which means jumping in with a short might not be a great idea. The stock did break $40 briefly during regular hours trading and fell back down below it. This recommendation may have pushed this through a psychological resistance point as well. Very possible this will fall off an early spike, but this could show strength if shorts are forced to cover.

Next Cramer said he did not like people who use charts to make investing decisions (even though his wife was apparently quite good at it and helped Cramer...according to his book "The Street Addict"). He said he looks for charts to find anomalies and said Quest Software Inc. (QSFT) had lots of bad news (bad quarter, options backdating) but is a buy because it is a broken stock with a base. He recommended getting in now and expects a good 4th quarter. He also said it has takeover potential.

Closing Price: $14.42
After Hours High: $15.15
Percent Increase at High: 5.1%
Price Level Off Point: $15.06
Percent Increase at Level Off Point: 4.4%
Trades on NASDAQ
Sector: Technology
Short %: 11.31%
Days to Cover: 3.9
% Held By Insiders: n/a
% Held By Institutions: n/a

Hovering just slightly over the $15 psychological price point which didn't seem to be an issue after hours. Looking at the recent price history, this is not a big moving stock on a daily basis and has been in the $14's for the last month and a bit. I would be surprised if this held above $15 as this would mean the stock would have to stay up around 4% for the entire day which isn't common for the stock. Again I would be looking at $15 and suspect it could trade slightly below that but could spike above it at the opening bell, but I don't see it holding.