by Profit Scanner | April 10, 2014 10:05 am
Searching for a springtime bargain stock? The Profit Scanner powered by Recognia has uncovered five stocks under $5 whose technical setups suggest they could move 15% or more before summer arrives.
Founded in 1990, Warren Resources (WRES) is an independent energy play that deals primarily with onshore crude oil and gas reserves, particularly exploration and development of waterflood oil recovery in the Los Angeles Basin of California and coalbed methane properties located in the Rocky Mountain region. Its cache of properties is located throughout California, Wyoming, New Mexico, and Texas. It focuses primarily on the; and on the exploration and development of.
At the April 9 close, WRES’ chart indicated a bullish Diamond Continuation pattern had formed, which could take the stock from the $4.89 close to an upside target of $5.70 to $5.90 in approximately 26 trading days.
For options traders, the series is relatively thinly traded, but there is some open interest at the May $5 strike, though the better bet for this bargain stock may be to simply buy the shares.
ZAGG Inc. (ZAGG) is a Utah-based specialty retailer that focuses on mobile accessory solutions, including protective coverings, cases, keyboards, keyboard cases, earbuds, portable power, and device cleaning products.
The chart for this bargain stock shows a bullish Bottom Triangle pattern that formed at the April 9 close. The pattern indicates ZAGG could jump from $4.76 at the end of Wednesday’s session to $5.50 to $5.70 in approximately 39 trading days.
ZAGG reports earnings in May, which could bring additional volatility to the small-capital. But traders with money to speculate may wish to try to take advantage of that volatility with a leveraged call options play, as the ZAGG May $5 strike has strong open interest.
Gold producer Allied Nevada Gold Corp. (ANV) has swung from a 52-week low of $3.01 to a 52-week high of $14.38. After closing April 9 at $4.14, the stock’s technical picture suggest it could make a near-term run.
ANW’s chart shows a bullish Continuation Wedge pattern, which has the potential to send the stock up to $6.60 to $7.10 in approximately 17 trading days.
It was announced the company will be investigated on claims that it “violated federal securities laws by misrepresenting the state of its operations and improperly concealing that certain equipment crucial to the its mining efforts suffered from serious, ongoing defects and deficiencies,” but the stock didn’t seem fazed by the news.
Speculative traders may wish to trade bullish call options on ANV, as there is significant volume in the near-the-money May and June strikes.
Healthcare manufacture Unilife Corp. (UNIS) specializes in needles and syringes to deliver medicines and vaccines.
From its April 9 close at $3.69, UNIS stands to increase significantly to $5.60 to $6.10 in just about 15 trading days, courtesy of a bullish Continuation Wedge pattern.
Options traders may wish to look out to the June $5 strike calls, which offer far more liquidity than nearer-term expirations.
Accuride Corp. (ACW) is a North American autoparts manufacturer that specializes in commercial vehicle wheels, wheel-end components and assemblies, and ductile and gray iron castings. Coming off of a 125% earnings surprise last quarter, Accuride will again report at the end of April. Another positive surprise could send the stock soaring, and ACW’s chart suggests a bullish event is in store for the near future.
As of the April 9 close, a bullish Symmetrical Continuation Triangle pattern emerged on ACW’s chart, which gives the stock potential to climb from $4.79 to a target of $5.60 to $5.80 in just about 17 trading days.
Both the stock and the options chain for ACW are relatively thin, so keep positions small and use only very speculative money as the market may easily get imbalanced.
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