Stocks in Play - December 16th 2024

TLDR Stocks in Play: CRYPTO, HON, RCAT, CKPT, AEHR,

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) Honeywell Int. (HON) (Rating: B+, Multi-Day)

Industry Group: Aerospace & Defence, Market Cap: $152b, Float: 651m, Short Interest: 1.3%, Days to Cover: 2.1, Exchange: NASDAQ

Catalyst: HON recently had Elliott take an activist stake. The idea being that they would force the breakup of the company. This morning they are ‘‘exploring strategic alternatives for unlocking shareholder value’’. Worth noting that HON have a big stake in Quantinuum (50%) a private Quantum Computing Leader. This is a slower mover 1.5% ADR high priced stock.

2) Red Cat Holdings (RCAT) (Rating: B, Single-Day)

Industry Group: Packaged Software, Market Cap: $709m,  Float: 52m, Short Interest: 12.3%, Days to Cover: 1.7, Exchange: NASDAQ

Catalyst: Announced Partnership with Palantir to enhance Autonomous Military Drones with GPS-Free Navigation. This stock has been a high flyer recently and has earnings After Market Closes. This is a good one day SIP and I had marked the earnings as a highlight over the weekend however I am always VERY wary of companies announcing good news the day of or day before earnings. It can be a pump to soften the blow of the dump they know is coming in earnings. Of course this may not be the case but I have witnessed it several times with this type of company. That being said looks like a solid SIP today with Drone stocks being in the news in a big way at the moment.

Honorable Mention to: MSTR - Added to the Nasdaq 100 and Bitcoin All Time Highs at the weekend put crypto in play. I am more inclined to look at this than the other stocks added PLTR & AXON. Other crypto stocks may be just as good proxies today as MSTR. CKPT - Low Priced Stock, Biotech that received FDA approval for their Drug for for the treatment of adults with metastatic cutaneous squamous cell carcinoma. $4 Stock, low float high short interest.

Edit at 8:22am  AEHR - Squeezing on Initial $10 Million in Orders for Production Wafer-Level Burn-In of Advanced AI Processors. High 23% Short Interest, Low Float.

Market Awareness

COPY & PASTE EVERY MONDAY - Mondays are always my least favorite market days. Stocks in play tend to be harder to identify early in the morning. There is a lot of wait and see. I try my best not to dive in head first on market open on a Monday in case of reversal negative. I am wary at the open today as always. Especially with the big names like MSTR. Market looks strong pre market. Let’s see how it settles into the open.

After Hours I’m Watching: RCAT (Earnings)

Tomorrow Morning I’m Watching: AMTM (Earnings)

Top Pick Watchlists:

• Top Picks - November 2024

  • LONG: ALAB, HNST, SNOW, ESTC, RKLB, SMTC, URBN, PLTR, GAP, TSLA, SE, RDDT, DESP

  • SHORT: TGT

• Top Picks - December 2024 

  • LONG: CRDO, MRVL, OKTA, FIVE, RBRK, AVGO

Sources & Services I Use in my Trading:

• Finviz - Short Interest, Float, Articles, Fundamentals (Free)

• Benzinga Pro - News Source + News Squawk + Earnings Data (Paid)

• Tradingview - Charting & Scanning (Paid)

• Koyfin - Fundamental Data (Paid)

• EarningsWhispers - Earnings Calendar (Free)

• Tradersync - Trade Journal (Paid)

_{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.}