NEW BULLISH Plays
ITT Educational Services - ESI - close: 19.43 change: +0.40
Stop Loss: 18.99
Current Gain/Loss: unopened
Entry on December xx at $ xx.xx
Listed on December 12, 2012
Time Frame: 2 to 6 weeks
Average Daily Volume = 500 thousand
New Positions: Yes, see below
Why We Like It:
ESI is in the post secondary education industry. The stock has been crushed over the past couple of years. Yet now it looks like ESI may have built a short-term bottom. The stock spent the better part of November consolidating sideways and building a base. That should make the shorts feel nervous and there are a lot of shorts in this stock.
Currently ESI is coiling under resistance at $20.00. A breakout past this level could spark a significant short squeeze. The most recent data listed short interest at almost 200% of the very small 14.9 million share float. Yes, you read that right, 200% of the float. You'll notice the rally in early September. That looks like a short squeeze. We'd like to catch the next one.
I am suggesting a trigger to open small bullish positions at $20.15. If triggered our target is $24.75. I do consider this a more aggressive, higher-risk trade.
Trigger @ 20.15 *Small positions*
Suggested Position: buy ESI stock @ (trigger)