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 Stocks Under $10 Set to Soar

Stocks in this article: SUPNLEAPNBGMEGMTORDCTH

Media General

One under-$10 name that's quickly moving within range of triggering a major breakout trade is Media General ( MEG), a provider of news, information and entertainment across 18 network-affiliated television stations, digital media and mobile platforms, serving consumers and advertisers in strong local markets, primarily in the Southeastern U.S. This stock has been on fire so far in 2013, with shares up sharply by 115%.

Just last week, Media General announced a merger with privately-held Young Broadcasting and Warren Buffett's Berkshire Hathaway said it will hold 5.3% of the new Media General combined company.

>>5 Stocks Set to Soar on Bullish Earnings

If you take a look at the chart for Media General, you'll notice that this stock just recently pulled back off its recent high of $9.95 to $8.60 a share on lighter volume. I say "lighter volume" because shares of MEG saw a super-spike higher last week off the merger news from $7 to $9.95 a share on monster upside volume. So far this pullback has seen MEG hold above its 50-day moving average at $8.39 a share. This stock is now quickly moving within range of triggering a major breakout trade.

Traders should now look for long-biased trades in MEG if it manages to break out above some near-term overhead resistance levels at $9.95 to its 52-week high at $10.17 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 214,905 shares. If that breakout triggers soon, then MEG will set up to enter new 52-week high territory above $10.17, which is bullish technical price action. Some possible upside targets off that breakout are $13 to $15 a share, or possibly even north of $15 a share.

Traders can look to buy MEG off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $8.60 a share, or just below its 50-day at $8.39 a share. One can also buy MEG off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

This stock is a popular target of the short-sellers, since the current short interest as a percentage of the float for MEG is very high at 15.6%. We could easily see a big short-squeeze if MEG triggers that breakout soon, so make sure to keep this name on your low-priced stock trading radar.

4 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!

Markets

DOW 17,814.94 -2.96 -0.02%
S&P 500 2,067.03 -2.38 -0.12%
NASDAQ 4,758.2520 +3.36 0.07%

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