This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

5 Stocks Under $10 With Big Upside Potential

Stocks in this article: SHZAISIDIXONTYCYTR

Oncothyreon

Another under-$10 name in the biotechnology and drugs complex that looks interesting is Oncothyreon (ONTY), which is focused primarily on the development of therapeutic products for the treatment of cancer. This stock has been on absolute fire this year with shares up by over 120%.

If you take a look at the chart for Oncothyreon, you'll see that this stock plunged from its July high of $11.59 to a recent low of $5.67. After printing that low, the stock formed a sideways trading pattern between $5.63 and $7.75. That sideways pattern has been in place since early August, but now the stock is close to triggering a breakout trade on a move outside of the sideways pattern. On Wednesday, the stock also soared back above its 50-day moving average of $6.54 on huge volume, which is bullish.

That move was mostly due to a note from Wedbush, which boosted its price target from $15 to $31 a share ahead of the STIMUVAX phase III data set for the first quarter of 2012. What's impressive about the stock's performance on Thursday is that the volume continued to expand and the stock added another 5%. Volume was over 2 million on Wednesday and 1.5 million on Thursday, well above its three-month average action of 507,800 shares.

Market players should now watch for a major breakout to trigger for ONTY if it can clear some past overhead resistance at $7.54 to $7.75 on high volume. A high-volume move above those levels could easily set this stock up for a ridiculous spike higher.

This stock is heavily shorted with over 21.2% of the float currently sold short by the bears. (It shows up on an October list of the 10 Most-Shorted Stocks in Biotech.) If we do get that breakout soon, then it's possible this stock makes a run at its 52-week high of $11.59, or possibly even higher.

You could be a buyer of this stock off any weakness and anticipate the breakout over $7.54 to $7.75 a share. I would simply use a mental stop right around the 50-day moving average of $6.54. You could also just buy off strength once the stock does trigger that breakout and simply use a much tighter mental stop near $7 a share.

Oncothyreon was also one of 13 Biotech Stocks Bought and Sold by Hedge Funds in the most recently reported quarter.

5 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,677.90 +216.58 1.32%
S&P 500 1,950.82 +23.71 1.23%
NASDAQ 4,452.7920 +69.9450 1.60%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs