January 30th - WSII GBX

Cramer had 2 Short Busting plays meaning he is picking stocks that are heavily shorted and Cramer thinks the shorts have got it wrong. The first pick was Waste Services Inc. (WSII)

Closing Price: $10.72
After Hours High: $11.98
Percent Increase at High: 11.8%
After Hours Most Recent: $11.70
Percent Increase at Most Recent Price: 9.1%
Sector: Industrial Goods
Days to Cover: 14.5
Short %: 5.49 %
% Held by Insiders: 22.51 %
% Held by Institutions: 8.40 %
50 Day Moving Average: $10.10
200 Day Moving Average: $7.84
Average Price Drop for Sector: 3.2%

I think a lot of previous shorts may take a spike as a chance to double down if they are strong in their convictions about the stock going down. It may be risky to jump in for a short on this spike if there is a lot of covering tomorrow. The stock has had a slow climb up from the low 9's over the last several months which apparently hasn't scared any of the shorts. Considering the stock is now over its 52-week high it does seem odd there are so many shorts. Did the shorts get in well above the current price or are they all losing money right now? The stock was near $20 in 2004, so if the shorts got in then, I'm not sure they will be scared by a move to $12 just yet. Seems very odd to me and if it goes over $12 tomorrow I would certainly stay away since it didn't break that level tonight.

The next short buster was Greenbrier Companies (GBX)

Closing Price: $27.36
After Hours High and Most Recent: $29.02
Percent Increase at High: 6.0%
Sector: Services
Days to Cover: 4.4
Short %: 18.32 %
% Held by Insiders: %
% Held by Institutions: %
50 Day Moving Average: $32.71
200 Day Moving Average: $32.60
Average Price Drop for Sector: 2.8%

Ok, this one looks more like a shorted stock since it is below its moving averages and is well below its 52-week high. The price is holding well and broke through $29 even after the initial surge. There may be difficulty shorting this one with almost 20% shorted already so there may be a hard time borrowing (assuming it doesn't get naked shorted as mentioned during the segment from a caller). It is certainly concerning that the price has continued to climb up, so this could be a "dead-cat bounce" situation where Cramer has helped put in the floor to the falling stock. So although Cramer claims we have 2 short busting scenarios, they are 2 very different stocks from a technical standpoint which both show signs they could show strength tomorrow.