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| Gator's Chart of the Day: XIDE |
XIDE reported earnings June 8th and now sports a ridiculous P/E of 4.8 and only 4.2 on a forward basis. Just over 8% of the float is short and it takes almost 10 days to cover. The target price is 4.93 and Wednesday it traded 28% above average volume.
Price has moved up about 40% over the last 3 weeks so we aren't catching this as early as I would like but it looks to have more upside left. It just closed above the 200 day for the first time in over a year and has moved into the February gap.
The Trade
I wouldn't chase the open but I would want to get a small piece shortly after the "market on open" orders are filled. If the stock pauses or pulls back a little I would be ready to add. I think 4.00 is a reasonable target and that would be about 20% upside. With a stop just under Wednesday's low of 3.16 you'll have the 200 day above your stop and if it does trip you can watch for a bounce from 3.00 to buy it back if you like.
Note: All statistics from Finviz