The Dogs Are Barking On PreMarket Prep

Some stocks that looked like they need a visit to the vet are picking up this week. PreMarket Prep hosts Dennis Dick and Joel Elconin on Wednesday offered a couple of picks for the market's "dogs," companies with bad reputations that could end up performing well.

Dick noted that these companies don't necessarily make for good long-term trades, but are opportunities to cash in on short-term developments in share price.

The hosts discussed the merits of stocks such as Alcoa Inc AA, Sprint Corp S, Chesapeake Energy Corporation CHK and Weight Watchers International, Inc WTW.

The Dogs

Alcoa was "showing some life," according to Dick, breaking through a key $6.00 resistance share price point. Elconin speculated that the aluminum producer could reach as high as $8.50, potentially off a big institutional buy. Investors were biting, potentially off news of Chinese tariffs that would put the company in a more competitive margin position, pushing the stock up to that level for the remainder of the day.

Dick said that Sprint shares were "crawling" out from under $2.50, and the stock might work well for some day trades or 2-3 day moves. The company recently received a B-rating from Morningstar, indicating a high risk of default. However, investors rallied, and the stock was up a little more than 17 percent shortly after the close.

Dick was also interested in Chesapeake Energy, which, despite his instinct that "long-term, the stock will coast to zero," could produce a short-term profit. Chesapeake shares were up 4 percent in early morning trading and held steady above the $1.85 level the rest of the day.

Dick said that despite the fact that he's an Oprah fan, he's "not a fan of Weight Watchers," which has attained dog status after losing about $60 in share price over the past five years. Weight Watchers shares closed down 17 percent.

Listen to the full show in the clip below, and tune in to PreMarket Prep every morning LIVE from 8-9:30 a.m. EST.