Stocks in Play - January 14th 2025

TLDR Stocks in Play: APLD, KBH, TMDX, ACMR

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Irish Born Investor
January 14, 2025 • Estimated Reading Time: 5 minutes

Stocks in Play - January 14th 2025

TLDR Stocks in Play: APLD, KBH, TMDX. ACMR

Welcome to today's Stocks in Play report. Below are the key stocks to watch, along with brief x-ray and analysis. Apologies for there being no publication yesterday, had a last minute family issue and couldn’t get the work done.

If you find this Newsletter helpful and ever want to say thank you then feel free to Buy Me a Coffee. It’ll inspire me to work faster….

1) Applied Digital (APLD) (Rating: B+, Single-Day)

Industry Group: Data Processing Services, Market Cap: $1.2b,  Float: 88m, Short Interest: 30%, Days to Cover: 3, Exchange: NASDAQ

Catalyst: Receiving up to $5b in Investment in their AI Data Centers. Initial $900m Investment with an option for a further $4.1b. Hot sector. Investment will equate to 15% equity in companies computing business segment. This deal is being announced on the day of earnings (which are after hours) this can be a big red flag for earnings as they like to pump the stock before some bad results. Not all the time but I’ve seen it many times. That being said it has a lot of potential to squeeze today with high short interest and significant investment from Private Equity.

2) ACMR Research (ACMR) (Rating: B, Single-Day)

Industry Group: Industrial Machinery, Market Cap: $890m, Float: 45m, Short Interest: 9%, Days to Cover: 3.7, Exchange: NASDAQ

Catalyst: Raised Annual Revenue Guidance above analyst estimates. Meaningful short interest. Stock neglected. This could be a more low key play today. Worth monitoring.

Honorable Mention to: KBH - Strong results for this home builder, Neglected stock. Beat on EPS, Succeed in heavy cost cutting. Guidance only in line. TMDX - had a presentation at JPM Conference. Stock is gapping up this morning. High Short Interest, low float, could easily squeeze here. Has been badly beaten down with heavy selling and short reports. Caution holding it overnight.

Market Awareness

I think we are on day 2 of a 3 day bounce. We will run today into CPI tomorrow. What happens after that I’m not sure but I wouldn’t be surprised to see another lower high form by the end of the week. However I am open to yesterday having been the medium bottom of the pullback. Trump will be inaugurated next week so that will be a pivotal moment on where the market goes. Caution at the open on the gap up.

For now I am bullish today and like the plays that are on the board. That being said outside of trading I run a business that is very seasonal. At the moment I am coming into a busy period so I am taking less trades and making sure I don’t get frustrated at missing potential trades. Another reason I love SIPs. There is always a new one tomorrow…

After Hours I’m Watching: APLD (Earnings)

Tomorrow Morning I’m Watching: JPM, BLK, GS, BK (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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