Stocks in Play - January 8th 2025

TLDR Stocks in Play: CALM, ABSI, SMMT, Quantum (Short)

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) Cal-Maine Foods Inc. (CALM) (Rating: B, Single-Day)

Industry Group: Process Industries, Market Cap: $4.6b,  Float: 40m, Short Interest: 8.4%, Days to Cover: 6.4, Exchange: NASDAQ

Catalyst: Strong Beat on EPS ($.4.47 vs est. $4.05), Very Strong Revs Beat ($955m vs est. $750m), Increased profitability and lowering of costs. Much of this seems to be due to Bird Flu. Stock is certainly not neglected, however it has meaningful short interest and a low float. If you look at chart history this stock tends to not have big gaps or else tends to fill them on Day one so that is worth noting when considering an entry.

2) Absci (ABSI) (Rating: A, Single-Day)

Industry Group: Biotechnology, Market Cap: $350m, Float: 68m, Short Interest: 15.5%, Days to Cover: 8.07, Exchange: NASDAQ

Catalyst: Wall St Journal Exclusive article that AMD has taken a stake in ABSI, a drug-discovery company based in Washington, in a move aimed at selling it’s AI Chips into the Healthcare sector. Deal is structured as Private investment. High Short Interest. This is still a Biotech so it’s a single-day for me but this could really move the stock. WSJ Article Here

Honorable Mention to: Quantum Stocks (SHORT) - Yesterday in a Q&A Jensen Huang CEO of NVDA said that he does not expect there to be useful Quantum Computers for at least 15 to 20 years. Almost all of the quantum hype was complete hot air anyway and this should have been obvious however this may be the pin that pops these stocks for a while. Best shorts are likely the ‘‘Pure Plays’’ on this Watchlist - RGTI, IONQ, QBTS, QUBT Quantum Watchlist on TradingView

SMMT - Initiated with $35 Price Target by Truist. Not a big catalyst by any stretch but this has high short interest 15.3%, 8 Days to Cover. The chart has been consolidating in a very orderly manner for several months. Beware - Biotech.

Market Awareness

We have the FOMC today. Cautious regarding the major stocks, will be watching the VIX whether to stay out or not. Otherwise my stock picks today are a bit disconnected to the market so I will concentrate on those. Market doesn’t look good but at the same time in these moments they like to screw the shorts and the longs. No need to be a hero here, see what price action brings for the bigger names.

After Hours I’m Watching: JEF (Earnings)

Top Pick Watchlists:

• Top Picks - November 2024

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

• Top Picks - December 2024 

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

• Top Picks - January 2025 

  • LONG: CEG, FUBO

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.}