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Below is a list of 7 companies that trade under $10 with strong short-term upward trends and high RSIs that are either potentially on the verge of breaking out or are quite possibly due for a near-term pull-back (or, with consolidation on any of them, possibly both).

1. Avanir Pharmaceuticals, Inc. (NASDAQ:AVNR) RSI: 93.46

Avanir describes itself as a biopharmaceutical company that is focused on bringing innovative medicines to patients with central nervous system disorders of high unmet medical need. The company seems to be gaining traction as it continues to create greater awareness concerning its flagship product, Nuedexta, the only FDA approved treatment for PBA which, in turn, has lead to increasing revenues and, potentially, an increased interest in the company's stock.

The company currently has 132.47M shares out and its stock trades around $2.75, giving it a market cap of roughly $360.6M. The stock's three month average daily trading volume is 1.65M. Shares of Avanir are trading about 42% below their 52-week high of $4.80. Institutional ownership stands at about 68% and, as of 12/30/11, the total short interest was 26.34M shares. Its levered free cash flow is -$31.96M.

Consensus analyst 12 month price target: $6.50

AVNR 1

2. Gerdau S.A. (NYSE:GGB) RSI: 78.52

Gerdau decribes itself as the leading producer of long steel in the Americas and one of the largest suppliers of specialty long steel in the world. It boasts over 40,000 employees and an industrial presence in 14 countries with operations in the Americas, Europe, and Asia, which together represent an installed capacity of over 25 million metric tons of steel per year.

The company currently has 1.71B shares out, and its stock trades around $9.50, giving it a market cap of roughly $16.15B. The stock's three month average daily trading volume is 9.275M. Shares of Gerdau are trading about 26% below their 52-week high of $14.82. Institutional ownership stands at about 17% and, as of 12/30/11, the total short interest was 4.25M shares. Its levered free cash flow is $ 563.90M.

Consensus analyst 12 month price target: $10

GGB 1

3. E-TRADE Financial Corporation (NASDAQ:ETFC) RSI: 79.07

E-Trade is described as a financial services company, which provides online brokerage and related products and services to the individual retail investors, under the brand E-TRADE Financial. It also provides investor-focused banking products, primarily sweep deposits and savings products, to retail investors. It has been working hard to write down debt incurred as the result of some poor lending practices, pre-housing market crash.

The company currently has 285.27M shares out and its stock trades around $9.25, giving it a market cap of roughly $2.64B. The stock's three month average daily trading volume is 7.30M. Shares of E-Trade are trading about 49% below their 52-week high of $18.13. Institutional ownership stands at about 83% and, as of 12/30/11, the total short interest was 5.73M shares. Levered free cash flow: N/A

Consensus analyst 12 month price target: $10

4. E-Commerce China Dangdang Inc. (NYSE:DANG) RSI: 72.89

E-Commerce China Dangdang describes itself as a B2C, e-commerce company in China that, since its inception, has focused on selling books online and claims to have become the largest book retailer in China in terms of both revenues and selection.

The company currently has 79.27M shares out and its stock trades around $6.25, giving it a market cap of roughly $493.85M. The stock's three month average daily trading volume is 2.16M. Shares of E-Commerce China Dangdang are trading about 81% below their 52-week high of $33.02. Institutional ownership stands at about 6% and, as of 12/30/11, the total short interest was 5.13M shares. Levered free cash flow: N/A

Consensus analyst 12 month price target: $8

DANG 1

5. Radian Group Inc. (NYSE:RDN) RSI: 71.61

Radian describes itself as a company that connects lenders, homebuyers, investors and loan servicers using a suite of private mortgage insurance and related risk management products and services.

The company currently has 133.20 shares out and its stock trades around $3, giving it a market cap of roughly $400.93M. The stock's three month average daily trading volume is 6.2M. Shares of Radian are trading about 69% below their 52-week high of $9.66. Institutional ownership stands at about 74% and, as of 12/30/11, the total short interest was 26.12M shares. Its levered free cash flow is $239.08M.

Consensus analyst 12 month price target: $5

RDN 1

6. Cal Dive International, Inc. (NYSE:DVR) RSI: 78.77

Cal Dive describes itself as a company that is a market leader in offshore construction, inspection, maintenance, repair and decommissioning of production and pipeline infrastructure that provides manned diving, derrick, pipelay and pipe burial services to the offshore oil and natural gas industry.

The company currently has 95.03M shares out and its stock trades at about $2.75, giving it a market cap of roughly $262.30M. The stock's three month average daily trading volume is 1.56M. Shares of Cal Dive are trading about 66% below their 52-week high of $8.19. Institutional ownership stands at about 91% and, as of 12/30/11, the total short interest was 5.46M shares. Its levered free cash flow is $1.32M.

Consensus analyst 12 month price target: $4.50

DVR 1

7. AsiaInfo-Linkage, Inc. (NASDAQ:ASIA) RSI: 71.48

AsiaInfo-Linkage describes itself as a leading provider of high-quality software solutions and IT services in China's telecommunications industry.

The company currently has 71.94M shares out, and its stock trades at about $8.75, giving it a market cap of roughly $620.85M. The stock's three month average daily trading volume is 643k. Shares of AsiaInfo-Linkage are trading about 62% below their 52-week high of $22.91. Institutional ownership stands somewhere between 47%-62% and, as of 12/30/11, the total short interest was 7.34M shares. Its levered free cash flow is $47.75.

Consensus analyst 12 month price target: $14

ASIA 1

I own a couple of the above stocks, and I must say that I can't tell whether their recent bullish moves (or any of the above listed stocks) will be short-lived or if they will prove to be true breakthroughs. Time will tell, but I am watching them all closely.

Source: 7 Stocks Under $10 With Strong Short-Term Bullish Trends