January 16th - ACN WIT
Cramer looked at outsourcing/consulting plays. The stocks mentioned were:
Accenture Ltd. (ACN)
Closing Price: $37.10
After Hours High: $ 37.72
Percent Increase at High: 1.67%
After Hours Most Recent Price: $ 37.67
Percent Increase at Most Recent Price: 1.54%
Sector: Services
Days to Cover: 1.7
Short %: 0.56 %
% Held by Insiders: 3.21 %
% Held by Institutions: 48.60 %
50 Day Moving Average: $34.89
200 Day Moving Average: $30.51
Average Price Drop for Sector: 2.8%
Electronic Data Systems Corp. (EDS)
Closing Price: $26.76
After Hours High: $ 27.19
Percent Increase at High: 1.61%
After Hours Most Recent Price: $ 26.72
Percent Increase at Most Recent Price: -0.15%
Sector: Technology
Days to Cover: 2.1
Short %: 1.01 %
% Held by Insiders: 0.42 %
% Held by Institutions: 93.20 %
50 Day Moving Average: $26.94
200 Day Moving Average: $25.19
Average Price Drop for Sector: 4.3%
Cramer said he prefers ACN over EDS (hence the negative movement after hours for EDS).
Infosys Technologies Ltd. (INFY)
Closing Price: $57.33
After Hours High: $ 58.25
Percent Increase at High: 1.60%
After Hours Most Recent Price: $ 57.94
Percent Increase at Most Recent Price: 1.06%
Sector: Technology
Days to Cover: 0.9
Short %: 0.37 %
% Held by Insiders: 19.62 %
% Held by Institutions: 13.00 %
50 Day Moving Average: $54.10
200 Day Moving Average: $44.65
Average Price Drop for Sector: 4.3%
Wipro Ltd. (WIT)
Closing Price: $17.08
After Hours High: $ 17.84
Percent Increase at High: 4.45%
After Hours Most Recent Price: $ 17.51
Percent Increase at Most Recent Price: 2.52%
Sector: Technology
Days to Cover: 5.9
Short %: 0.17 %
% Held by Insiders: 82.06 %
% Held by Institutions: 0.80 %
50 Day Moving Average: $15.36
200 Day Moving Average: $13.62
Average Price Drop for Sector: 4.3%
All things considered WIT is the only decent shorting option tonight. These aren't exactly sexy stocks which I think has something to do with the lack of any major spikes. WIT reached a new 52-week high today and closed near the high which shows it has some momentum (a short sellers worst enemy). I just noticed that the company reports earnings tomorrow at 8:15am before the bell! RED FLAG RED FLAG! I would not short this, because a good earnings report will trump the Cramer effect! Of course Cramer has been wrong with stocks about to report (DKS anyone?), but its not worth the risk in my opinion.
posted by CramerTracker @ 1/16/2007
8 comments
Comments on "January 16th - ACN WIT"
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Anonymous said ... (January 16, 2007 8:40 PM) :
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CramerTracker said ... (January 16, 2007 9:02 PM) :
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Anonymous said ... (January 17, 2007 2:31 PM) :
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CramerTracker said ... (January 17, 2007 2:39 PM) :
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Anonymous said ... (January 17, 2007 4:30 PM) :
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CramerTracker said ... (January 17, 2007 4:43 PM) :
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Anonymous said ... (January 17, 2007 4:55 PM) :
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Anonymous said ... (January 17, 2007 5:35 PM) :
post a commentI would short WIT. WIT is the perfect short right now. Watch what happens during the earnings call. Its going to hit 15 bucks and change by 12pm. Watch and learn.
I assume that is probably based on some prior knowledge of the company? I'm certainly not going to question it, but from a shorting Cramer's picks theme and basing the theory on very little fundamental analysis of the company its not something I would endorse personally. Good luck if you are short though.
i'm not the anonymous above, but i guess the WIT pre-earnings wasn't quite a slam dunk?
no position in wit - i don't even know anything about the company - but "Watch and learn." type comments deserve to be slapped down.
Personally I think betting on an earnings call is just a wild guess. I'm not sure how anyone without insider information can be 100% sure what the earnings will be or the reaction of the stock. If you guess right you can do very well, but you can't bet the farm.
Question,
What does the Squeeze Rank score represent on the Shortsqueeze.com site? Is a high score good or bad?
There is actaully a post in my blog somewhere that describes it...but here it is cut and pasted:
Short Squeeze has developed the Squeeze Ranking system used to gauge a stock's squeeze potential. We use a proprietary algorithm used to rank a stocks potential for either a bullish or bearish stock price move. Squeeze Theory is the creation of Dylan Wetherill, the founder of Short Squeeze. The theory seeks to identify the basic principles that cause a stock to experience a short squeeze (bullish) or a long squeeze (bearish).
For example, a Squeeze Ranking of 0 is neutral, with unlimited up or down values to mark bullishness or bearishness. A Squeeze Ranking of 2,000 would be more bullish than a Squeeze Ranking of 50. Conversely, a negative Squeeze Ranking of -3,000 would be much more bearish than a Squeeze Ranking of -50. As a Short Squeeze member you are able to search all stocks and find stocks with the highest Squeeze Rankings: short squeeze (bullish) and long squeeze (bearish). The process Squeeze Rankingâ„¢ system is designed according to the principles of Squeeze Theory.
Many people assume that short interest in a stock alone biases a stock to either upward or downward price moves. This is not the case. The potential for a squeeze is dependent upon two market forces: the amount of concentrated short interest that exists in a stock and the price action of the stock.
Part 1: A stock's Days To Cover (Short Ratio) and it's Short Percent of Float are both used to identify the amount of concentrated short interest that exist in a stock. The higher these numbers, the higher the amount of relative levels of concentrated short interest there is in a stock.
Part 2: The second factor in evaluating a stock Squeeze Ranking is the stock's price action. The stronger a stock's price performance is, the more pain will be felt by people who are short a stock. If someone is short a stock and the price action is relatively flat, there is little immediate incentive for a short to cover their position (buy stock). On the other hand, a stock experiencing powerful upward performance, or even making new 52-week highs, can cause an extreme desire by short traders to exit their trades. This is done by buying stock, which can initiate a chain reaction of buying interest to surge into a stock. This powerful market force is called a short squeeze.
Thank you sir.
Hi, did someone order a dish of humble pie? Oh there he is Mr. Anonymous at the top of the page. No worries this ones on the house. Better get your WITs about you so you don't say something you will regret...