One under-$10 name that looks ready to trade much higher is Orexigen Therapeutics (OREX), a biopharmaceutical company focused on the development of pharmaceutical product candidates for the treatment of obesity. The bears have beaten down this stock in 2011, with shares off by over 72%.
If you take a look at the chart for Orexigen Therapeutics, you'll see that this stock recently gapped up from around $1.40 to $2.68 a share on monster volume. Following that gap up in price, the stock has now dropped back down toward $2.15 a share. What I like about the setup here for OREX, is that when a stocks gaps up like this, sells off and then challenges the gap high again, it often breaks out. If you want to see an example of this, then look at the chart for Transcept Pharmaceuticals (TSPT), which recently put in a similar pattern.
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