Heavy short interest, combined with earnings releases, have these three stocks primed for volatility. Here's what long-term investors should stay focused on.

1. 3 Stocks That Could Make Huge
Moves This Week

2. Solar City (Nasdaq: SCTY)
Solary City is the leading provider of
solar panels and related energy
systems in the United States.
Currently, over 42% of shares
outstanding are being sold short.
Some of that is due to the fact that
the company has yet to turn a profit.
The larger story is that Solar City has
a complicated way of recognizing
revenue and a very rich valuation.

3. Here’s What You Should Watch
Over the Short-Term
• Analysts are expecting
Solar City to report
revenue of $71.8 million.
• They are also expecting
earnings to come in at a
loss of $1.27 per share.
• For 2015, expectations are
set for $461 million in sales
and a loss of $4.62 per
share.
Over the Long-Term
• SolarCity thinks it can double the
volume of MW booked and
deployed every year until 2017. In
order to accomplish the goal, look
for each of these numbers to
register at least above 85% for the
quarter.
• Just as importantly, Solar City
believes it can lower input costs to
$2.50 per watt by 2017. Last
quarter, it stood at $2.90—look to
see how much closer the company
is to reaching this goal.

4. Iconix (Nasdaq: ICON)
Iconix is the owner of many popular
brands which it licenses out to third
parties and collects royalties from.
Currently, over 32% of shares
outstanding are being sold short. That’s
somewhat odd, as the company only
trades for 13 times earnings.
The most likely explanation is that
Iconix has made it clear that it intends
to buy other “iconic” brands for
licensing, and investors probably don’t
have faith in that strategy working out.

5. Here’s What You Should Watch
Over the Short-Term
• Analysts are expecting
Iconix to report revenue of
$111 million.
• They are also expecting
earnings to come in at
$0.56 per share.
• For 2015, expectations are
set for $498 million in sales
and $3.06 per share.
Over the Long-Term
• As acquisitions have become
more common, investors
should pay attention to organic
revenue growth.
• The company was able to
expand profit margins during
the first nine months of 2014
from 31.14% to 36.94%. Look
to see if such healthy margins
still factored in during the
holiday season.

6. Tile Shop (Nasdaq: TTS)
Tile Shop is a fast-growing chain of
stores offer tiling solutions for
homeowners.
Currently, over 27% of shares
outstanding are being sold short.
There are several explanations for
this: a short report from Gotham
City Research, the departure of
founder/CEO Robert Rucker, and
meager same-store sales growth.

7. Here’s What You Should Watch
Over the Short-Term
• Analysts are expecting Tile
Shop to report revenue of
$64.7 million.
• They are also expecting
earnings to come in at
$0.04 per share.
• For 2015, expectations are
set for $292 million in sales
and $0.31 per share.
Over the Long-Term
• The Tile Shop’s margins have
fallen from 73.6% in 2011 to
69.4% today. Look to see if
margins can tick above 70% for
the quarter.
• More importantly, same store
sales have fallen dramatically.
Management expects zero
growth. Anything above 1%
would be great news for
investors.

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