March 5th - PRAA

After a general market update and 2 "Know Your IPO" stocks (BBND and FIRE) Cramer recommended Portfolio Recovery Associates Inc. (PRAA) as a play on the sub-prime crisis.

Closing Price: $41.67
After Hours High: $ 43.60
Percent Increase at High: 4.63%
After Hours Most Recent Price: $ 42.56
Percent Increase at Most Recent Price: 2.14%
Sector: Services
Days to Cover: 27.4
Short %: %
% Held by Insiders: %
% Held by Institutions: %
50 Day Moving Average: $45.47
200 Day Moving Average: $44.49
Average Price Drop for Sector: 2.8%


Low average shares traded daily and a high number of days to cover (27 days) the current short position could explain the rather large price pop after hours. The price was approaching the lower band after a huge drop from the $49 level and was approaching an over-sold level according to the RS Index being close to 30, so this Cramer recommendation may have put in a bottom for the stock. Unless a lot of people shorted in the last day or 2, I don't think anyone that shorted closer to $49 are going to be too worried about this spike which could allow for a nice drop on any irrational covering to a price similar to the high after hours of $43.60.