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!

5 Stocks Under $10 Hedge Funds Love

Stocks in this article: MTG KOG RAD BIOF SIRI

Paulson's hedge fund took a new position in MTG after buying 17 million shares worth $84.15 million at an average price of $3.46 a share. Paulson is already up big on this position, so there's no telling how long he plans to keep it. That said, shares of MTG are in a strong uptrend despite its short-term weakness, so it's worth putting on your radar.

From a technical perspective, shares of MTG have recently pulled back from its recent 52-week high at $8.16 a share to right above its 50-day moving average of $6.71 a share. This stock could have more to go on the downside if the market doesn't bounce soon, so I would watch to see if it finds support either at its 50-day, or at $6 to $5.50 a share. Those second levels are the range lows from earlier this summer, so watch to see how it acts here at the 50-day, and then near those second levels if MTG continues lower.

Kodiak Oil & Gas

Another under-$10 name that Paulson is jumping into here is Kodiak Oil & Gas ( KOG), an independent energy player engaged in the exploration, exploitation, acquisition and production of crude oil and natural gas in the U.S. This stock hasn't done much so far in 2013, with shares up by just 7.6%.

Kodiak Oil & Gas has a market cap of $2.53 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 25.41 and a forward price-to-earnings of 9.53. Its estimated growth rate for this year 40.4%, and for next year it's pegged at 51.5%.

>>5 Stocks Rising on Big Volume

Paulson's hedge fund added a new position here with KOG after buying 14,958,400 shares between $7.47 a share to $9.07 a share, with an average price of $8.45 a share. This company has been rumored to be a takeover target, so Paulson could be speculating on just that.

Another legendary hedge fund manager that's loading up on some under-$10 stocks here is David Einhorn. Einhorn is the founder and president of Greenlight Capital, a long-short value-oriented hedge fund, which he started in 1996 with $900,000. Greenlight has reportedly produced about a 20% annualized return for investors, which has helped him achieve a net worth of $1.25 billion.

3 of 7

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 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

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