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

4 Hot Stocks to Trade (or Not)

Stocks in this article: DG RAS BBRY TUMI

I'd recommend being a seller if BBRY drops below it's most recent swing low of $13.

Dollar General

Nearest Resistance: $53
Nearest Support: $49
Catalyst: Secondary Offering

>>4 Stocks Spiking on Big Volume

After posting its fourth-quarter earnings numbers on Monday, Dollar General (DG) is off by a point today after pricing its 30 million share secondary offering at a slight discount. The offering wasn't a cash-raising measure for DG; instead, it was an exit strategy for some existing shareholders who were looking to reduce their exposure to the firm.

DG had been bouncing lower in a downtrend for the latter half of 2012, but shares flipped over into an uptrend at the start of 2013, sparking a buying opportunity for traders. The most important part of today's price action is the fact that shares are still holding above trendline support. Until that changes, investors should look to buy the dips in DG.

RAIT Financial Trust

Nearest Resistance: $8.25
Nearest Support: $7
Catalyst: Share Offering

Shares of RAIT Financial Trust (RAS) are off by close to 3% today after pricing the firm's 7 million share offering. The corporate action is making RAIT Financial Trust one of the most heavily traded names on the NYSE today. As a real estate investment trust, RAS is obligated to pass on the vast majority of its earnings onto shareholders. As a result, it's dependent on fundraising efforts like share offerings in order to raise investment capital.

From a technical standpoint, RAS' price action broke this stock's otherwise bullish price action from the last month. An aborted bullish technical pattern is generally just as bad as an outright bearish one, and for RAS, that means that a dip to support at $7 looks likely. Buyers should wait for shares to re-establish support before jumping into a position in this stock.

Tumi Holdings

Nearest Resistance: $25
Nearest Support: $20
Catalyst: Secondary Offering

The last trading session of 2013's first quarter is proving a popular one for secondary share offerings -- Tumi Holdings (TUMI) is yet another firm that's trading off by a few points today after pricing a 10.14 million share offering earlier in the week. Tumi is getting set to celebrate it's one-year anniversary as a publicly traded company next month, but share aren't exactly presenting a compelling buy signal right now.

2 of 3

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!

Markets

DOW 17,815.80 +37.65 0.21%
S&P 500 2,066.60 +5.37 0.26%
NASDAQ 4,752.8210 +4.4250 0.09%

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