Five Stocks at 52-Week Lows Set to Launch Higher (AONE, ETR, SCOK, TGT, CEDC, BP)

“Buy low, sell high” is a mantra often repeated when referring to success in the stock market. That is easier said than done, however. Proper timing, discipline, and research are all necessities while trying to “catch a falling knife.” When buying beaten down shares of a company, you have to be aware of the risk associated with the trade. The stock is falling for a reason and it is just as likely to continue to decline as it is to bounce back. That's where the timing and discipline comes in. If you decide to step in and buy, make sure to not overextend yourself too early by purchasing the whole lot at once. Purchasing shares in predetermined increments so that you don't get wiped out in a single downward move and using possible price declines as opportunities to lower your cost basis is a wise tactic. With that being said, you can't average-in to a trade forever. The key to any good trade is to establish a distinct exit point beforehand that screams, “YOU ARE WRONG,” and signals you to get out. The biggest problem losing traders have is holding on when they know they should be getting out. Hope and fear are not winning strategies in the stock market. With all that being said, here are five companies whose shares are near 52-week lows and have potential for significant moves to the upside: 1) A123 Systems AONE: Shares of this lithium-ion battery manufacturer have lost over 43% since reporting disappointing earnings in late February. The stock has been down 22 out of the past 33 trading sessions and put in a new 52-week low at $5.21 early this morning. Shares vaulted off 7% off of that low, however, and closed 4.7% higher relative to yesterday's close. The nearest resistance is the 20-day moving average on a one year daily chart, which is 16% higher than the current trading price. Today's bullish reversal, along with high gasoline prices and, thus, a need for lithium ion batteries, makes this alternative energy company very attractive in the near term. 2) Entergy Corporation ETR: Disasters sometimes provide the best investing opportunities. When the oil spill hit Louisiana, shares of BP BP dropped all the way to $26.75 due to panic selling. Today, the stock is at $45.50. A similar opportunity may be unfolding in shares of Entergy. The earthquake in Japan, and resulting nuclear problems sent shares of this company, which derives 42% of its electric generation in the U.S. from nuclear power, down over 13% in four trading days. Shares recovered briefly before continuing their run to the downside over the past ten trading days. Today, the stock tested the 52-week low of $64.72 set on March 17th as it traded down to $65.15. Bulls stepped in, however, and pushed shares back into positive territory to nearly $66. This price action suggests that fear emanating from Japan's nuclear problems is waning, at least for this company. As a result, shares of Entergy may be in line for a move to pre-earthquake levels. 3) SinoCoking & Coke Chemicals SCOK: Shares of this coal and coke processor were at $10.34 a little over two weeks ago. Earlier this morning shares were trading nearly 50% lower at $5.22, a new 52-week low. Allegations of fraud against small-cap coal miner Puda Coal PUDA have ravaged similar names in the coal space recently, SinoCoking included. Investors seemingly had enough of the selling, however, as bulls stepped around 12pm and sent shares soaring 16.2% higher than yesterday's closing price to $6.23. The stock has a lot of room to move as the nearest resistance is the 20-day moving average on the one year daily chart. That number, $7.87, is 26% higher than the closing price today. 4) Target TGT: The stock set a 52-week low of $47.77 on June 28th of last year. Shares took off from that level and went on to gain 27.6% to $60.97 (52-week high) as of January 3rd. Shares have sold off significantly since then and have been nearing that low set last June. The stock sold down to $49 dollars on Tuesday before buyers emerged and pushed the stock back above the $50 level on heavy volume. A double bottom appears to have been set on a one year daily chart, with the $49 level providing strong support. A break above $50.50 could provide investors with a good entry point as the stock doesn't appear to have much resistance until $53. 5) Central European Distribution CEDC: Shares were trading as high as $40 this time last year, and were $23 as of February 28th. A disappointing earnings report on March 1st and subsequent analyst downgrades have caused the stock to freefall 56% since then, currently trading at $10.39. Shares had set a new 52-week low of $10 early in today's session before bulls stepped in and moved the company 3.9% off of its low to $10.39 on higher than average volume. This buying spurt off of the low is exactly what investors and money managers like to see when looking to enter a downtrodden name. Saying the stock has been beaten down recently is a polite way of putting it, but the stock has tremendous upside potential and today's price action could provide the entry catalyst investors have been waiting for. Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.