This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Stocks With Huge Rebound Potential

North American Palladium

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Another beaten-down stock with a notable short interest that has the potential to rebound sharply is North American Palladium (PAL), a diversified precious metals company that owns two mines and various mineral properties. The company is in the business of exploring and mining palladium, platinum, gold and certain base metals. This stock has been crushed in the past three months, with shares down over 37%, and for the year, PAL is off by a whopping 44%

Palladium is rare metal that's used in everything from catalytic converts to jewelry to dentistry to the production of surgical instruments. There's currently a huge shortage of palladium. In fact, it's the biggest shortage in three decades, so any decent rebound in industrial usage post-Greece could help to boost prices in the coming months.

From a technical standpoint, this stock topped out earlier this year after it formed a double-top chart pattern at around $7.93 a share. Since that topping action, shares have fallen all the way down to its current price of $3.85 a share. Over the past couple of weeks, the stock has been making higher lows, which is bullish price action, and buying support has come in around $3.30 to $3.60 a share. I would look to buy this stock on any weakness and add to the position if you see it take out some near-term resistance at $3.89 and 4.18 a share on a closing basis. If PAL moves above those levels, then I think this has the potential run back toward $6 in very short order.

The current short position on PAL isn't huge, but it's big enough to spark a sizable short-covering rally that squeezes the bears. As of May 31, the short interest as a percentage of the float for PAL is 5.5%. That means that over 7.87 million shares are currently sold short, and the bears have banked huge gains during the recent slide. If I were those bears, I would look to cover down here since it looks like the stock has stopped trending lower.

North American Palladium shows up on a recent list of 8 Mining Stocks With Upside.
4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
GS $164.11 -0.11%
NILE $25.78 -1.00%
PAL $0.04 -10.48%
SOHU $44.93 -0.20%
SODA $13.72 -0.44%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs