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Tuesday, January 09, 2007

January 9th - ECOL SRCL

Cramer's theme tonight was waste management and his first recommendation was American Ecology Corp. (ECOL)

Closing Price: $17.97
After Hours High: $ 19.24
Percent Increase at High: 7.07%
After Hours Most Recent Price: $ 19.05
Percent Increase at Most Recent Price: 6.01%
Sector: Industrial Goods
Days to Cover: 8.0
Short %: 5.76 %
% Held by Insiders: 18.00 %
% Held by Institutions: 63.40 %
After Hours High: $ 19.24
After Hours Most Recent Price: $ 19.05
50 Day Moving Average: $20.34
200 Day Moving Average: $21.92
Average Price Drop for Sector: 3.2%

Big increase after hours for a waste play if you ask me. Once again shows investor confidence (or gullibility). The moving average might actually come into play here as the 50-day is at $20.34 which means there would be resistance if the stock were to get that high (because it means that people that bought this stock in the last 50 days are all losing money, and if the price goes back up to $20.34 they may sell to break even, thus causing the resistance). Given the strong after hours, I wouldn't be surprised if tomorrow morning this went higher than $19.25 these days I wouldn't be surprised if it did come close to $20.

His medical waste pick was Stericycle Inc. (SRCL)

Closing Price: $74.02
After Hours High: $ 75.51
Percent Increase at High: 2.01%
After Hours Most Recent Price: $ 75.04
Percent Increase at Most Recent Price: 1.38%
Sector: Industrial Goods
Days to Cover: 13.3
Short %: 4.94 %
% Held by Insiders: 4.86 %
% Held by Institutions: 89.50 %
After Hours High: $ 75.51
After Hours Most Recent Price: $ 75.04
50 Day Moving Average: $71.94
200 Day Moving Average: $67.42
Average Price Drop for Sector: 3.2%

Too expensive for my taste. With the stock up the same dollar value as ECOL it may looking good to some, but the percentage tells the story for me. And although there obviously were some buyers, I don't see there being a large amount of buyers breaking down the door tomorrow to get some which also might make it harder to get a short filled for the quantity desired.

Finally Cramer basically sat on the fence with Bed Bath & Beyond Inc. (BBBY) but said if you own it, it is worth keeping. He is on both sides because there was both an upgrade and a downgrade on the stock today, and he agrees with both reports.

Closing Price: $40.05
After Hours High: $ 40.47
Percent Increase at High: 1.05%
After Hours Most Recent Price: $ 40.39
Percent Increase at Most Recent Price: 0.85%
Sector: Services
Days to Cover: 3.6
Short %: 3.23 %
% Held by Insiders: 3.92 %
% Held by Institutions: 87.90 %
50 Day Moving Average: $39.53
200 Day Moving Average: $37.08
Average Price Drop for Sector: 2.8%

The fence sitting obviously had an adverse effect on the price movement after hours and makes this one not really a consideration for shorting in my opinion.

Comments on "January 9th - ECOL SRCL"

 

Anonymous Anonymous said ... (January 09, 2007 9:42 PM) : 

got short too early at 18.85 18.90 then at 19 again...It seemed like a big move for a so so stock...I hope I can exit this one ok.

 

Anonymous Anonymous said ... (January 10, 2007 8:16 AM) : 

Hello, I'm pretty new to this site, and I have a question. Looking back historically, The after/pre hours spikes usually seem to be significantly higher than the regular hours. Would it be relatively safe to assume that this would be the safest bet? I'm trying to avoid round trip day trades.

 

Anonymous Anonymous said ... (January 10, 2007 8:20 AM) : 

Also, I'm using Etrade for my online brokerage and when I tried to short OPTM, if I remember correctly, they said I would not be able to short this security because enough shares were not avail. Could this be because the IPO was so recent?

 

Blogger CramerTracker said ... (January 10, 2007 8:44 AM) : 

Yes there are certainly some cases were the highs are found after hours and not in the regular trading, but the opposite is also true as can be seen with OPTM yesterday. I haven't taken a comparative look in a while, but I have a chart somewhere in the history of the blog, which I couldn't find after a quick search, that compared the after hours and the next day to see if there was a better time to short...and it showed that it was about 50/50 after hours vs. next day. There are times it would certainly work for you only shorting after hours and covering the next day, but it won't always be the best option. I like the 9:30 opening bell short because that is the most predictable time for a drop and has the "smoothest" trading, unlike after hours and pre-market where the price can jump around due to the limited number of traders and shares available. Personally, I was able to find a broker who doesn't have day trading rules to avoid the issue I think you are refering too. And yes, that could be a reason that not enough shares were available. I don't know for sure how they who or where they borrow the shares, but it could also be because there were too many shares short (probably less likely for OPTM, but still possible) and they just had no more available to loan out.

 

Anonymous Anonymous said ... (January 10, 2007 9:01 AM) : 

Would you be willing to make any suggetions as to which online brokerage would allow me to make unlimited day trades w/out change in status?

 

Anonymous Anonymous said ... (January 10, 2007 9:15 AM) : 

Disregard the question. I shouln't have asked.

 

Blogger CramerTracker said ... (January 10, 2007 9:57 AM) : 

I use a Canadian brokerage called Questrade that doesnt' have daytrading rules. I'm not sure of any others that offer the same.

 

Anonymous Anonymous said ... (January 10, 2007 9:58 AM) : 

2.8k of ECOL. Already locked in at 18.98 from 19.12 I'm starting to see a brighter horizon in my financial future.

 

Anonymous Anonymous said ... (January 10, 2007 10:17 AM) : 

With my Etrade margin account, I am able to borrow up to 3x my cash value (including SMA) without pattern day trader status. Does Questrade have this option as well? How would you compare the two as far as web functionality/reliability, and trading tools?

 

Blogger Unknown said ... (January 10, 2007 10:29 AM) : 

I was able to get out this morning at 18.80 and 18.85. (break even/slight gain) I see the mistake here was not catching the high of 19.17. It would have still been a good trade had I gotten in there. Yes its tough to catch the high...my 3 minute theory only worked the first 3 times. Now the price seems to drift higher as afterhours goes on. Hmmm.....

 

Blogger Unknown said ... (January 10, 2007 10:36 AM) : 

I just had a thought. Why not fill half a short order in after hours and half in the morning. That would average out the possibility of a higher open.

 

Anonymous Anonymous said ... (January 10, 2007 10:56 AM) : 

CramerTracker,

Not sure if this an appropriate question, but do you live in the US? If so, How do I get around the Canadian residence requirement for Questrade?

 

Blogger CramerTracker said ... (January 10, 2007 10:58 AM) : 

Doing 2 shorts might be a good idea. My only question/concern would be determining how/why certain stocks seem to drift upwards after hours and why some spike quickly and drop. I'm not sure if it is just Cramer saying better and better things that get people to jump in 5 minutes after her first mentions it, if it is a mini short squeeze, or just an after hours supply/demand issue depending on the size of the float or average volume traded? Unfortunatly I don't keep track of when the high is found after hours to try and analyze which stocks drift up or drop quickly.

 

Blogger CramerTracker said ... (January 10, 2007 11:02 AM) : 

As for Questrade, it is only for Canadian residents (not sure where you are from). I get 4x on margin with no day trading limitations/requirements at all. I was with ameritrade canada before and was limited to 3 or 4 day trades in a 7 day span. Any more then that would then be day trader status and more money would have been required and other rules followed.

 

Blogger CramerTracker said ... (January 10, 2007 11:05 AM) : 

Haha..sorry. Having a hard time keeping up with the comments. I'm not used to getting so many. I have already basically answered, that I am from Canada so there is no way to use Questrade otherwise.

 

Anonymous Anonymous said ... (January 10, 2007 11:49 AM) : 

HarmonTrading group offers 4 for 1 margin and no rule on minimum balance. 2 for 1 overnight and no margin fees

 

Anonymous Anonymous said ... (January 10, 2007 12:11 PM) : 

Thanks, I'm expecting a call from them anytime now.

 

Anonymous Anonymous said ... (January 10, 2007 1:19 PM) : 

How is the Harmon short list?

 

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