TIVO stock, LGF stock and ZAGG stock are 3 small caps around $10 or less that I’m looking to swing trade soon. As a small cap swing trader, there are 3 types of charts I play consistently which are oversold, continuation patterns and breakouts. TIVO stock is a pending breakout play as is LGF stock whereas ZAGG is a bottom bounce. I already scored ZAGG for 10% last week and will look for entry again off a continuation pattern if it sticks. These patterns work, I locked in 24% or roughly $6,000 on Hyperdynamics (NYSE:HDY) last week (see video) swinging the same pattern as ZAGG recently illustrated.
TiVo (NASDAQ:TIVO) provides technology and services for television solutions, including digital video recorders (DVRs) and connected televisions in the United States and internationally. TIVO’s earning call is Wednesday February 29th and their current short interest is 7.12 days to cover reported on 12/15/2011. Shares of TiVo spiked Wednesday January 4th after the digital video company reached a patent settlement in which AT&T Inc. will pay it at least $215 million through June 2018. Rumor is Verizon could be next and this leads me to believe TIVO is poised to breakout above $11 in the short term which would surely squeeze a boatload of shorts accelerating the move.
Lions Gate Entertainment (NYSE:LGF) is an entertainment company, engaging in the motion picture production and distribution, television programming and syndication, home entertainment, family entertainment, new channel platforms, and digital distribution activities. LGF’s earnings call is Monday February 6th and their current short interest is 7.82 days to cover reported 12/15/2011. LGF is nearing a deal to buy “Twilight” movie producer Summit Entertainment for about $400 million, two people familiar with the matter said on Sunday. I believe LGF is poised to breakout again like it did at the end of September. There should be a solid squeeze to help fuel the move if shares run above $9 this week or next.
ZAGG Inc. (NASDAQ:ZAGG) designs, manufactures, and distributes protective coverings, audio accessories, and power solutions for consumer electronics and hand-held devices under the invisibleSHIELD, ZAGGskins, ZAGGbuds, ZAGGsparq, and ZAGGmate brand names, primarily in the United States and Europe. ZAGG’s earnings call is Monday March 12th and the reported short interest is high at 11.19 days to cover from the last settlement date of 12/15/2011. I played the oversold bounce on ZAGG perfectly last week locking up a solid 10% swing and am looking to swing ZAGG again off this continuation pattern. I believe $9.50 is a reasonable goal if the $7.50 range holds during this consolidation phase.
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