Delafield, Wis. (Stockpickr) -- There isn't a day that goes by on Wall Street when certain stocks trading for $10 a share or less don't experience massive spikes higher. Traders savvy enough to follow the low-priced names and trade them with discipline and sound risk management are banking ridiculous coin on a regular basis.
Just take a look at some of the big movers in the under-$10 complex from Thursday, including BioFuel (BIOF), which is exploding higher by over 80%; KiOR (KIOR), which soaring higher by 30%; J.C. Penney (JCP), which is ripping to the upside by 24%; and Clean Diesel Technologies (CDTI), which is spiking sharply higher by 13%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.
One low-priced stock that recently exploded to the upside was battery player Highpower International (HPJ), which I highlighted in Feb. 20's "5 Stocks Under $10 Ready to Explode" at around $2.80 per share. I mentioned in that piece that shares of Highpower International had been consolidating and trending sideways for the last four months, with the stock moving between $2.02 on the downside and $3.45 on the upside. That chart pattern had started to tighten up and the stock was quickly moving within range of triggering a big breakout trade above some resistance levels at $2.88 to $2.89 a share.
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