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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Under $10 Set to Soar

LodgeNet Interactive

One name in the broadcasting and Cable TV sector that looks poised for higher prices is LodgeNet Interactive (LNET), a provider of interactive media and connectivity solutions to the hospitality industry in the U.S., Canada and Mexico. The bears have done a number on LNET since this stock is off by over 40% in 2011.

If you take a look at the chart for LodgeNet Interactive, you'll notice that this stock formed a triple top between April and June at $3.80 to $3.70 a share. After forming that top, the stock plunged down to its October low of $1.31 a share. The stock has since then rallied to its current price of $2.40. During that uptrend, the stock has been making mostly higher highs and higher lows, which is bullish.

>>5 Rocket Stocks Poised for Gains

Market players should now watch LNET for a breakout trade if the stock can manage to sustain a high-volume move and close above its 200-day moving average of $2.67 to $2.70 a share. Look for volume that's near or above its three-month average action of 140,381 shares. Volume on Thursday (an up day) was 1.47 million, which is well above the average volume. If we get a high-volume move above those levels I mentioned, then LNET should trend towards $3 to $3.50 a share, or possibly much higher.

You could be a buyer of LNET off any weakness and simply use a mental stop just below the 50-day moving average of $2.16 a share. You could also buy off strength and get long once the stock takes out $2.67 to $2.70 with volume. I would use a mental stop a few percentage points below those levels if you get long off strength.

This stock has a monster short interest since 28.9% of the tradable float currently sold short by the bears. If we get a breakout soon, then look for a large short-squeeze to setup since this stock is a penny stock and it's so heavily shorted.

5 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

Brokerage Partners

Rates from

  • 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