With the major indices setting up above resistance recently, I expect some consolidation here before the next bull run and am eying up some solid small caps that could deliver in the short term. If good news comes out of Europe, you can bet I’ll start to act on some or all of these ideas. Most of these have a market cap less than $500 million and some are oversold while others are consolidating after the last move up.
Things to remember if you’re new to my blog include I hardly ever swing through earnings, better off going to Vegas and my goal is to make 10% on a trade a move on. All trades verified through a third party and linked directly to my brokerage accounts. Don’t believe in the power of small caps, how about the 100% plus alert I called on JVA in less than 2 weeks time recently. Or the 30% on QPSA last Friday at $2.95 that one day later hit $3.75! Small caps are where it’s at for the little guy and I make my living teaching others how to leverage these short yet predictable opportunities.
Coffee Holding (NASDAQ:JVA) was a recent alert of mine from $7 to $14 on a short squeeze call. (Read more) Earnings are on Monday January 30, 2012 and I think coffee stocks are bound to get hot again before then. Right now JVA is setting up just above the 20 and 200 Moving Averages which is where I’m watching for a swing trade between $10.50 and $14 short term.
Accelr8 Technology (AMEX:AXK) had a solid move up over the summer and is now settling just above the 20 and 50 Moving Averages. Price action support can bee seen on the chart pretty much where the price is today followed by the $2.30 range. With the 200 Moving Average at $3.37 followed by a price shelf at $4.25 there is plenty of upside potential if AXK turns back up from here off this accumulation phase which is slowly starting to edge higher. Earnings are on Wednesday December 14, 2011.
Caribou Coffee Company (NASDAQ:CBOU) has earnings right around the corner on Tuesday November 8, 2011. Like JVA, I’m watching for coffee stocks to heat up again and if they do I like where CBOU is on the chart today. The 20 Moving Average is at $12.58 and a breakout above $13.50 should signal a move to the $15 range short term.
ZAGG Inc. (NASDAQ:ZAGG) is not stranger at JasonBondPicks. We’ve played this one in both directions but I like it long here if the market heats up as I think it will. Earnings Monday November 14, 2011 so there is about 3 weeks of runup opportunity here. It’s above all 3 major Moving Averages and has a decent trading range from $13 to $15.64 short term.
Majesco Entertainment (NASDAQ:COOL) is still a bit top heavy for me still but I really like this stock. Early entry off of the $3 range is something I’ve considered but I’d really like to be positioned at $2.75 heading into the Zumba 2 launch. Recently I swung it off the $2.01 range after the last earnings dip illustrating my ability to find support before upward swings. Earnings aren’t until Friday January 16, 2012 leaving plenty of time for traders to get excited about Zumba 2’s numbers post launch.
Liquidmetal Technologies (OTCBB:LQMT) is my lotto pick before the holidays. Like most small caps they have their fair share of problems but their deal with Apple and Swatch are just a few examples of future stories that could launch this small cap into the lime light. Having said that, the trend is nothing but down for months so it’s just a watch for me still. Possibly a trade off $.15 but I’ve yet to decide that. This is my illiquid (pardon the pun) speculation play, make no mistake there is little to no daily volume, not my typical swing trade idea.
Sirius XM Radio (NASDAQ:SIRI) has earnings are Tuesday November 1, 2011 and they’ve already upped their guidance but if/when the beat Wall Street you know it’ll pop again on all the excitement. I said it was a steal at $1.40 recently, have made plenty of money trading SIRI and now I plan to do it again. Now, this is the only stock on my watch above a $500 million market cap and normally I don’t like to go there because that’s where the big boys play and trust me, you can’t get an edge on the big boys in my opinion. Having said that, SIRI is a good opportunity heading into this round of earnings, especially if the market goes into an uptrend. A clear trade range can be seen here at $1.80 with upside $2.20 to $2.50 short term. Don’t expect SIRI to move fast though, like I said it’s market cap is $7.22 billion. To put it in perspective, my favorite market cap is $100 – $200 million.
Disclosure: I am long 3,000 QPSA at $2.95