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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

5 Beaten-Down Stocks That Could Rebound in 2012

Stocks in this article: MOTRSQNSTRIDHSOLSIGM

Hanwha SolarOne

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

If you're looking for a beaten-down name in the solar sector that could be a great January Effect trade, then take a hard look at Hanwha SolarOne (HSOL), a manufacturer of silicon ingots, photovoltaic cells and PV modules. It also provides PV cell processing services and PV module processing services. This stock is down huge in 2011, with shares off by over 88%.

This stock is currently trading about 6 cents off its 52-week low of 99 cents. This is another beaten-down penny stock that has come all the way down from its 52-week high of $9.78 to its current level of $1.05 a share. This is another January Effect candidate with an extremely low float of just 22.28 million shares. The bears control 3.26 million of those shares through short positions. If the January Effect kicks in for HSOL, then this stock could easily experience a big short-squeeze.

My trading plan for HSOL is to buy the stock off any weakness and simply use a mental stop that's around 10% below that recent low of 99 cents a share. You could also buy off strength and get long on a breakout over $1.15 a share on high volume. Look for volume on that breakout that's tracking in near or above its three-month average action of 858,961 shares. Target a run back toward the 50-day moving average of $1.66, or possibly even higher.

I also featured Hanwha SolarOne earlier this month in " 5 Stocks Under $10 With Big Upside Potential."

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 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

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