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If you're looking for an under-$10 name in the trucking complex, then take a look at
Swift Transportation(SWFT - Get Report). This company is a transportation services company and a truckload carrier in North America. This stock has been trending lower in 2011, with shares off by around 30% so far this year.
This stock is rising by around 6% today after the company reported better-than-expected third-quarter earnings driven by improving volumes and pricing.
If you take a look at the chart for Swift Transportation, you'll notice that this stock was hammered by the bears from its July high of $14.36 to a recent a
52-week low of $5.39 a share. Since hitting that low in early October, the stock has spiked big and now trades at just over $8.46 a share. Traders should now watch for this stock to trigger a big breakout if it can manage to trade above $8.84 to $9.40 a share with solid volume.
Volume today is tracking in very strong with over 4.7 million shares traded, which is well above its three-month average volume of 2.3 million shares. A
high-volume move above $8.84 to $9.40 should set this stock up to make a run at its 200-day moving average of $12.10 or possibly even higher.
>>Stocks Rising on Unusual Volume
One could be a buyer of this stock on any notable weakness and anticipate the breakout, or you could just wait for the breakout and then get long off strength. If you buy off weakness, I would use a mental stop at around the 50-day moving average of $7.76 a share. If you get long off strength, buy a high-volume move over $8.84 and then add aggressively over $9.40 a share. Use a mental stop for that trade that's a few percentage points below $8.84.
This stock has a notable short interest since around 8% of the tradable float is sold short by the bears. The bears have also been increasing their bets from the last reporting period by 20.7%, or by about 1.1 million shares. Look for a tradable short-squeeze in SWFT once it clears $9.40 with volume.
As of the most recently reported period, Swift was one of the
holdings of Daniel Loeb's Third Point.