February 9th - LNDC OPTM FNSR

Cramer made a new rule about speculative picks and said he would only make them on Fridays, so people could evaluate them over the weekends. He must fail to remember that people will still buy instantly after hours. His speculative pick for the day was Landec Corp. (LNDC)

Closing Price: $12.35
After Hours High: $14.00
Percent Increase at High: 13.4%
After Hours Most Recent: $12.91
Percent Increase at Most Recent Price: 4.5%
Sector: Basic Materials
Days to Cover: 1.7
Short %: 1.41 %
% Held by Insiders: 15.03 %
% Held by Institutions: 59.80 %
50 Day Moving Average: $11.16
200 Day Moving Average: $9.86
Average Price Drop for Sector: 5.5%

Big initial spike after hours up to $14, but of course that didn't hold and fell as much as a dollar a few seconds later. After reading Market Barometer I have been taking a look at the bollinger bands to see if they can help spot some important price levels. I won't get into the details on how to use the bands, but the particular stock is now well over the top band of $12.62. This means that the support on the way back down from the spike could be near $12.62 (I don't suggest waiting for this point since it could take days to get there if you are looking for a quick day trade, but it might give a good idea how much potential downturn there might be). So we have an idea of the downside, but the high is harder to determine. With the stock slightly below $13, I could see it opening around $13, and anything over that number could be a good short entry point around the time of the opening bell.

Cramer moved on to Telco and said CSCO is a good buy (but not the focus of the segment or a good short in my opinion based on this small recommendation). Sticking with the speculative theme Cramer picked three telco stocks Optium Corporation (OPTM), Finisar Corp. (FNSR), and OPXT which is about to have an IPO.

OPTM
Closing Price: $23.52
After Hours High: $24.75
Percent Increase at High: 5.2%
After Hours Most Recent: $24.01
Percent Increase at Most Recent Price: 2.1%
Sector: Technology
Days to Cover: 1.0

FNSR
Closing Price: $3.08
After Hours High: $3.30
Percent Increase at High: 7.1%
After Hours Most Recent: $3.22
Percent Increase at Most Recent Price: 4.5%
Sector: Technology
Days to Cover: 3.3
Short %: 8.65 %
% Held by Insiders: 18.05 %
% Held by Institutions: 72.80 %
50 Day Moving Average: $3.39
200 Day Moving Average: $3.61
Average Price Drop for Sector: 4.3%

FNSR is a very cheap stock, that some will not be able to short since several brokerages won't allow shorting under $5. With a gain of only around 14-cents, there isn't a lot of room to play with, even though it does represent a decent percentage. OPTM isn't holding gains after hours and has settled around $24. There was some resistance at $24 prior to the Cramer recommendation and it appears to be coming back into play with the after hours drop. A short closer to the high for tonight of $24.75 would be far more desirable then one in the low $24's (sort of goes without saying, but what I am trying to say is a short at the low $24's might not be worth much).