Stocks in Play - December 11th 2024

TLDR Stocks in Play: PLAY, CADL, SFIX, GME

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Irish Born Investor
December 11, 2024 • Estimated Reading Time: 5 minutes

Stocks in Play - December 11th 2024

TLDR Stocks in Play: PLAY, CADL, SFIX, GME

Welcome to today's Stocks in Play report. Below are the key stocks to watch, along with brief x-ray and analysis.

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1) Dave & Buster’s (PLAY) SHORT (Rating: B, Single-Day)

Industry Group: Movies/Entertainment, Market Cap: $1.22b, Float: 40m, Short Interest: 15.2%, Days to Cover: 4.4, Exchange: NASDAQ

Catalyst: Missed on Revs, Missed on EBITDA, CEO Resigned to ‘‘Pursue other Interests’’. Sales down 3% YoY. The only hesitation with this stock is the high short interest and low float. I still think the earnings and the CEO resignation are bad enough however for it to break down through that $30 support it’s been knocking on now for months. I would however take note if it does start to reverse there is a potential for a squeeze here but I see no fundamental catalyst to ignite that.

2) Candel Therapeutics (CADL) (Rating: B, Single-Day)

Industry Group: Biotech, Market Cap: $261m, Float: 15m, Short Interest: 11%, Days to Cover: 6, Exchange: NASDAQ

Catalyst: Positive topline data for CAN-2409 viral immunotherapy achieved primary endpoint by demonstrating statistically significant and clinically meaningful benefit when combined with radiation therapy for intermediate-to-high risk, localized prostate cancer. The phase 3 clinical trial was conducted under a Special Protocol Assessment (SPA) with the FDA . Was up 70% when I started writing and as of posting up 165% so volatility expected!

3) Stitch Fix (SFIX) (Rating: B, Single-Day)

Industry Group: Retail Trade, Market Cap: $575m, Float: 95m, Short Interest: 6%, Days to Cover: 2, Exchange: NASDAQ

Catalyst: Strong Beat on EPS (-$0.05 vs est. -$0.13), Beat Revs, Beat on Revs Guide Next Q. Beat FY25 Guide (midpoint above expectations.) Analyst Upgrades, Stitch Fix was a 2020 darling and was a highly shorted stock. It is now a turn around play. Nice long technical base (2 Years) and breaking out of it here on earnings this morning.

Honorable Mention to: GME - Earnings were bad and that is to be expected however the company interestingly announced they don’t anticipate any further at the market offerings or sale of common stock during the fiscal year. This will be seen as a call out to the Roaring Kitty crew for potential squeeze coming into January/February. I’m adding it to my watchlist for this reason.

Market Awareness

CPI Today, Caution. I’m looking for and expecting volatility. Ideally I’d like a flush to the downside to be bought up late in the day. The chart suggests a downside move but again this is a bull market so I’m more interested in new long setups rather than shorts. The market has been somewhat zombified the last few days. Choppy action and very selective follow through in names. Cautious and patient right now. I am happy to tread water until the next fat pitch. Hitting singles and trying to slowly grind up my account. Critical not to give back here.

After Hours I’m Watching: ADBE (Earnings)

Tomorrow Morning I’m Watching: CIEN (Earnings)

Top Pick Watchlists:

Sources & Services I Use in my Trading:

PS: There are many ways to trade stocks in play. It does not have to be the one that keeps going straight up and sometimes it doesn’t even have to be day one of the catalyst. Everyone must find a setup, timeframe and method that works for them. This list is supposed to educate on the criteria I use and the methods in which I find Stocks in Play. Yours may differ and that is completely okay.

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