5 Stocks Under $10 Set to Soar
Just take a look at some of the hot movers in the under-$10 complex from Wednesday, including Ocean Power Technologies (OPTT), which skyrocketed by 70%; Complete Genomics (GNOM), which ripped to the upside by 42%; Amyris (AMRS), which traded up 18%; and SkyWest (SKYW), which closed up 14%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.
I highlighted Ocean Power Technologies in "7 Stocks Under $10 With Relative Strength" for its bullish price action when it was trading at just $2.20 a share. I also recently flagged SkyWest in another 5 stocks under $10 set to soar article, well before it made that monster move higher on Wednesday.
I'm not as eager to recommend investing long-term in stocks that trade less than $10 a share because these names can be very speculative, and the odds for picking the long-term winners aren't great. But I definitely love to trade stocks that are priced below $10. I like to view them as a trading vehicle with lots of volatility and lots of upside when the trade is timed right.
>>ACTIVE STOCK TRADERS: Check out Stockpickr's special offer for Real Money, headlined by Jim Cramer, now!
When I trade under-$10 names, I do it almost entirely based off of the charts and technical analysis. I also like to find under-$10 names with a catalyst, but that's secondary to the chart and volume patterns.