Orion Marine Group
If you're looking for a under-$10 stock in the construction services sector, check out Orion Marine Group (ORN), a marine specialty contractor serving the heavy civil marine infrastructure market that provides a range of marine construction services on, over and under the water along the Gulf Coast and the Atlantic Seaboard and in the Caribbean Basin. The bears have done a number on this stock so far in 2011, with shares off by over 40%.
If you take a look at the chart for Orion Marine Group, you'll see that this stock has been in a nasty slide lower since it topped out at $10.80 a share back in May. The stock also recently gapped down big in just a few trading sessions from over $8 a share to a recent low of $5.51 a share. That said, since hitting the $5.51 low, the stock has been forming a basing pattern between $5.50 and $6.70 a share. The stock has also started to print higher lows and some higher highs which could be signaling a bullish trend change.
Market players should now watch for a breakout trade to alert with a move above $6.70 a share on strong volume. A sustained move above that level on volume that's tracking in close to or above 339,000 shares would be bullish for this stock.You could buy this stock on any notable weakness in anticipation of the breakout, or you could just wait for the breakout and then get long. I would use a stop at around $6 a share if you buy this name on weakness. I would add to any long position if it then trades above its 50-day moving average of $7.33 a share with volume. This stock could run big if the breakout hits, since the next significant overhead resistance levels won't be reached until $9 to $10 a share. This stock has a rather high short interest as a percentage of its float, at around 10.4%. If the breakout triggers here for ORN then this stock could see a large short-squeeze that forces the bears to move in and cover and buy back the stock. >>Practice your stock trading strategies and win cash in our stock game.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV