3 Midcaps Ready to Stomp Out the Shorts

These stocks are sitting on positive fundamentals and technicals

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3 Midcaps Ready to Stomp Out the Shorts

Scotts Miracle-Gro

081513SMG 300x186 3 Midcaps Ready to Stomp Out the Shorts
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Scotts Miracle-Gro (SMG) has lagged the market slightly, returning only 17% year-to-date, the results of choppy earnings. That aside, the technicals for the $24 billion market-cap stock are threatening a breakout above the $55 level.

If there’s one thing the shorts hate most, it’s a breakout above a stock’s chart resistance — which is exactly why we like this fertilizer giant at this juncture.

A break (possibly within the next week) above the April highs will force short sellers to start buying their portion of the 5 million shares that have been sold short, fueling a potential move to the next point on this midcap’s chart, $60 — an 11% pop.


Article printed from InvestorPlace Media, http://investorplace.com/2013/08/midcap-short-squeeze/.

©2014 InvestorPlace Media, LLC

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