By Lynn Saylor
Below is a list of six stocks under $10 that have been on fire recently, with strong short-term upward trends and high RSIs that may continue their hot streaks or pull back in the near-term. It should be noted that there is very little in the way of institutional presence for many of (almost all) of them. Many of them are also trading near or above their average analyst price targets.
1. Alcatel Lucent SA (ALU)
Alcatel Lucent is described as a company that is primarily involved in fixed and mobile internet protocol, optics technologies, as well as applications and services thereof. It is a partner of service providers, enterprises, industries, and governments worldwide.
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Its stock currently trades at $2.59 with 2.27B shares out, giving it a market cap of $5.87B. Institutional ownership stands at about 14% with the short interest as of 1/31/2012 being 12.90M. The average analyst consensus price target is $2.90.
Much of the recent run may be attributed to its 2/10/12 Q4 2011 earnings release, in which the company announced that it had finally swung to its first ever full-year profit, having booked positive cash flow for the quarter.
2. Magnum Hunter Resources Corp. (MHR)
Magnum Hunter is described as an independent oil and gas company. It engages in the acquisition, development and production of both natural gas and oil. The states that the company has highly concentrated its efforts in are West Virginia, North Dakota, Texas, and Louisiana. It is active in three shale resource plays in the U.S.: the Marcellus Shale, Eagle Ford Shale and Williston Basin/Bakken Shale.
Magnum Hunter's stock currently trades at $7.53 with 128.80M shares out, giving it a market cap of $969.84M. Institutional ownership stands at about 71% with the short interest as of 1/31/2012 being 29.06M. The average analyst consensus price target is $7.50.
The stock's recent rise is primarily due to the company raising its fiscal year 2012 production guidance to 15,000 Boe per day on January 30th.
3. Samson Oil & Gas Limited (SSN)
Samson is described as being engaged in exploration and development of oil and natural gas properties in the U.S. As of June 30, 2011, its properties included North Stockyard Project; State GC Oil and Gas Field, New Mexico; Davis Bintliff, Brazoria County, Texas; Hawk Springs Project, Goshen County, Wyoming; and Roosevelt Project, Roosevelt County, Montana.
Its stock currently trades at $3.01 with 87.53M shares out, giving it a market cap of $263.43M. Institutional ownership stands at roughly 2% with the short interest as of 1/31/2012 being 1.25M. The average analyst consensus price target is $0.22 (there is only one analyst covering the company).
Some of the recent up-trading may be explained by the company's announcement on the 13th that it had completed its construction on the defender wall on its Hawk Springs Project, and its expectations that the facility will be running smoothly in short order. It also provided a positive update on its Roosevelt Project in Montana.
4. Threshold Pharmaceuticals, Inc. (THLD)
Threshold describes itself as a biotechnology company that is focused on the discovery and development of therapeutics based on Tumor Hypoxia, a powerful scientific platform that offers broad potential to treat most solid tumors. It believes that by selectively targeting tumor cells, it is building a pipeline of drugs that hold promise to be more effective and less toxic to healthy tissues than conventional drugs.
Its stock currently trades at $6.08 with 49.13M shares out, giving it a market cap of $298.70M. Institutional ownership stands at about 67% with the short interest as of 1/31/2012 being 720.5k. The average analyst consensus price target is $7.
It also announced on February 21st that its 214 patient randomized controlled Phase 2b clinical trial evaluating the efficacy and safety of two doses of the investigational agent TH-302 in combination with gemcitabine compared to gemcitabine alone in patients with first-line advanced pancreatic cancer achieved its primary endpoint, with a 63% improvement in progression free survival and a safety profile consistent with previous studies.
5. Openwave Systems Inc. (OPWV)
Openwave is described as a software provider delivering both mediation and messaging solutions. Its solutions enable communication service providers to create and deliver services, including mobile and broadband operators. The company's mediation solutions are designed to meet the needs of communication service providers moving toward the open, all-internet protocol architectures of networks.
Openwave's stock currently trades at $2.61 with 86.38M shares out, giving it a market cap of $225.44M. Institutional ownership stands is 57% with the short interest as of 1/31/2012 being 2.67M. The average analyst consensus price target is $2.25.
I see no justifiable reason for this recent run to continue, as there is no substantive/news related reason for it to have occurred in the first place, but that doesn't mean it won't continue its climb in the near-term.
6. Tanzanian Royalty Exploration Corp. (TRX)
Tanzanian Royalty Exploration is described as a mineral resource company with exploration-stage properties, which engages in the acquisition of interests in and the exploration of natural resource properties. Its main area of interest has been in the exploration of gold properties, with a primary focus on exploring for gold properties in Tanzania.
Its stock currently trades at $4.14 with 100.02M shares out, giving it a market cap of $414.07M. Institutional ownership stands at 13% with the short interest as of 1/31/2012 being 4.55M. There are no analyst price targets to speak of.
As with Openwave, I can find no real reason/catalyst for the high-volume run the stock has been on since February 15th. As such, I will be watching it closely as a potential short in the near future.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.