Up On A Down Day; 3 Penny Stocks Between $1 And $3

Here at Jason Bond Picks I teach three easy to spot chart patterns, attempt to find a solid catalyst and time the market for 5-10% rinse and repeat. While my daily focus is on $3-$5 stocks, from time to time I like to put out a list of what I call ‘Account Builders‘ in which the swing trade cocktail is basically the same but I lower my price in the scan to $.25 – $1 or in this case $1 – $3 with at least $500,000 in volume on the day. MNI, COCO and SWSH were not only up on a down day but are heavily shorted with technical patterns that offer a tight identifiable stop and a trading range around 20% to maximize profit opportunity. Let’s take a closer look.

Mcclatchy Company (NYSE:MNI) operates as a newspaper publisher in the United States. The 52 week trading range on MNI stock is $1.05 – $3.04 with a Beta of 2.03 and a market cap of $196 million, right in my swing trade cocktail wheelhouse. Here’s where it gets interesting, although light volume $581,069 did trade hands today and the short interest here is 64.5 days to cover with 27.69% of the float betting against the stock. The continuation pattern just under $2.42 provides a tight stop at $2.18 conservative or $2.10 aggressive with $2.42 followed by $3 acting as resistance. While nearing overbought again, this does look like a squeeze play if you ask me but key the price action and broader indices, doubt it squeezes in bear market.

Corinthian Colleges (NASDAQ:COCO) operates as a post-secondary education company. It offers various diploma programs, as well as associate’s, bachelor’s, and master’s degrees. The 52 week range on COCO stock is $1.40 – $5.21 with a juicy Beta of 3.24 and a market cap of $214 million. The first thing I see when looking at the chart is a nice continuation pattern up to $3 or about 20% on the swing with a tight identifiable stop in the $2.40’s or more aggressive at $2.38. This is no stranger to shorts either, contrarians love this play with 28.7 days to cover and 29.97% of the float betting against the stock. In a bull market this will likely be my first move on an open above and hold of $2.50.

Swisher Hygiene (NASDAQ:SWSH) provides hygiene and sanitation solutions in North America and internationally. The 52 week range on SWSH stock is $1.32 – $4.87 with a Beta of -.08 and a market cap of $244 million. This stock presents an interesting opportunity having hit the 52 week low Monday at $1.32 but is certainly full of risk. Just off oversold I’d be looking to see if $1.38 holds conservative, $1.32 aggressive and swing to $1.60’s for a 15% profit if it burns and turns, which it has in the past 52 weeks, out of oversold status. The short interest here is 24.6 days to cover with only 9.55% now betting against the stock.

Disclaimer: I have no positions in any stocks mentioned, but may initiate a (long or short) position in MNI, COCO, SWSH over the next 72 hours.

Jason, this new style with detailed analysis and the “stalker” watch list is fantastic! Thank you for continuing to improve this service.

Jeremy B.

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