Yesterday, we had a nice day with our Short Sale of the Day on Harbin Electric Inc. (HRBN), which was a short sale good for 2.8%. We got into Harbin in the morning at 25.60. We watched the stock sit at 25.75 for the majority of the day, but at 2 PM, HRBN started to lose buyer interest as seller interest rose. The stock plummeted down to 24.21. We exited at 24.90 for a 2.8% gain. The stock is down today to 22.50s, which is good for over 12% in gains. I hope some of you had more risk than I do and took advantage of that gain. Our Buy Pick of the Day did not meet our intraday requirements, so we did not get involved in ERX or ERY. Either way, it was a good day.
Now, we get into today’s Overnight Trade of the Day…
Overnight Trade of the Day: GMX Resources Inc. (GMXR)
Analysis: It is not typical for me to recommend an Overnight Trade in a stock that is up over 4% already the day before a company reports its earnings, but this opportunity is looking pretty stellar. I want to get involved with GMX Resources Inc. (GMXR), which is a small independent oil and natural gas producer in Texas, Louisiana, and New Mexico. The company is definitely a small player in the oil game, but I think it presents a very solid opportunity going into tomorrow for some nice gains.
The first reason that attracted me to GMXR, which is not even the best reason for investing into GMXR is that independent oil companies, as a whole, have been having pretty good quarterly reports for Q4 of 2009. 24 out of 34 of the companies that reported earnings in the past month, reported surprise EPS gains. Most of these gains were pretty outstanding, as well. GMXR’s closest competitors have done pretty well. The closest company that resembles GMXR is Panhandle Oil and Gas, who produces both oil and natural gas, is involved in the same region as GMXR, and has similar market capitilization. That company produced a surprise estimate of 1900%. Another close company did miss estimates, but it has struggled to pull profits and reduced its losses exceptionally in the past quarter. This company is Petroleum Development Corp. Overall, independent oil and gas has been surprising a lot of estimates. GMXR’s EPS estimate is to hit 0.09, which be…
