Oi SA (NYSE: OIBR): This Little Stock Could Easily Double in the Next Three Months

I love finding little stocks that have a strong possibility of doubling or even tripling in a short period of time.

I uncover them by running technical screens on stocks trading under $10. My screens search for companies that have been knocked off their highs, have built technical support and have bounced back above their 50-day simple moving averages.

Once the screen has located suitable candidates, I drill down into fundamentals, economic conditions and potential catalysts that could power the little stock higher. Many beaten-down stocks do what is called a "dead cat bounce," that is they bounce from their lows only to drop back down to those lows or even further. My fundamental, economic and catalyst screen, which I call "Price Drivers," adds support to the technical picture.

I firmly believe that technical analysis plays a powerful role in stock analysis, but it cannot stand on its own as a decision-making tool. Traders need to understand what's behind the price moves to make profitable decisions. Price alone isn't adequate for the vast majority of situations.(more)

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