f**********g
发帖数: 2252 | 1 5 Stocks Under $10 for Sept.
By Rick Aristotle Munarriz | More Articles
September 20, 2010 | Comments (0)
Netflix Hits $100!David Gardner called Netflix in 2004 at $15.42. He’s up
684% as of July 13th. See what David’s recommending that you buy NEXT.
If you've got 10 bucks, I have some stock ideas for you.
Sure, you will technically need more than a Hamilton. You have stock
commissions to deal with. Investors will also want to buy in bigger lots.
However, there is certainly plenty of volatility present in stocks with low
price tags -- and smart investors can do well here as long as they're
cognizant of the heavy risks.
I've been singling out attractive opportunities in low-priced stocks since
my original "5 Stocks Under $10" column nine years ago, and I've seen plenty
of stocks with pocket change prices generate incredible gains.
There are risks, and they are readily apparent given the recent volatility.
There are often good reasons for stocks to be ignored or beaten down.
However, a market rally can work wonders for the unloved with positive
catalysts in their pockets.
Let's go over my five picks from March of last year to prove my point.
Company
9/17/10
3/13/09
Gain
Sirius XM Radio
$1.13
$0.198
471%
Bare Escentuals*
$18.20
$3.66
397%
Focus Media
$21.88
$5.74
281%
Geron
$5.09
$4.36
17%
Ford
$12.49
$2.19
470%
*Bare Escentuals was acquired for $18.20 a share earlier this year.
The average gain of 327% in just 18 months is remarkable. Sirius XM Radio (
Nasdaq: SIRI) had braced investors for the possibility of a bankruptcy
filing a month earlier. Now it's a thriving media giant with four quarters
of breakeven results under its belt. Ford (NYSE: F) may have been the better
positioned stateside automaker, but no one was buying cars at the time, but
the water's so fine that even GM is ready to go public.
Let's go over this month's picks.
TiVo (Nasdaq: TIVO) -- $9.48
The digital video recorder (DVR) pioneer is patent-rich but share price-poor
. Despite its ability to land cable and satellite television heavies as
licensing partners, the sheer number of TiVo subscribers continues to shrink.
TiVo will also face an onslaught this holiday season, as tech darlings roll
out new set-top solutions.
Yes, these are challenging times for TiVo, but the couch-potato buddy is
also one of the few companies in this niche that's been cultivating
relationships with cable providers and the content creators. The stock could
also pop if it reaches a long-awaited settlement with DirecTV, a move that
would pad its coffers as well as validate its revolutionary patents.
JA Solar (Nasdaq: JASO) -- $7.32
I singled out JA Solar in this list back in April, and the solar energy play
has gone to appreciate by 25%.
I think this is just the beginning. Solar stocks are bouncing back after a
pitiful 2009, and JA is no exception. Analysts see the company earning $0.96
a share this year, so the stock is attractively priced at less than eight
times this year's projected profitability.
New orders for the company's mono-crystalline and multi-crystalline solar
cells continue to pour in, giving JA a "bright" near-term future.
Exelixis (Nasdaq: EXEL) -- $4.00
Upstart biotechs are a lot like lottery tickets, so this is my riskiest pick
this month. Exelixis has spent years toiling away on cancer treatments, and
was dealt a blow earlier this year when partner Bristol-Myers Squibb ended
its collaboration on XL-184 -- even as the treatment was in the final phase
of clinical trials.
The good news here is that Exelixis has a rich pipeline of potentially
promising compounds in different phases of development, and it's been
trimming its overhead to make sure that it can see them through the process.
Live Nation (NYSE: LYV) -- $9.65
Shares of concert promoter Live Nation have fallen 30% since my springtime
bash, but I'm ready to take a bullish turn.
Armed with its purchase of Ticketmaster, Live Nation is the undisputed champ
when it comes to event promotion and ticketing. Naturally, this is a tough
business to be in when discretionary income is melting like an afternoon
snow cone. Live Nation has had to deal with tour cancellations, resorting to
discounts to fill seats at other shows.
However, I really like some of Live Nation's initiatives to milk even more
out of the concertgoer experience. It's no longer cheap concessions and
mangy t-shirts. Live Nation is teaming up with artists to upsell premium VIP
admissions and offer products like live-event CDs that weren't feasible in
the past.
Between social media initiatives that will bear fruit in the future and the
$40 million in annual synergies that Live Nation is on track to realize
after the close of the Ticketmaster deal in January, Live Nation's future is
a lot more promising than its present.
Book it!
A123 Systems (Nasdaq: AONE) -- $9.17
Lithium-ion battery maker A123 was one of last year's hottest IPOs, soaring
66% last year on the allure of its role in sustainable transportation.
It's been a bumpier road this year, as short-sighted investors are growing
impatient with negative gross margins and A123's tendency to burn through
cash.
However, the applications for A123's rechargeable battery packs are real
given the volume of eco-friendly automobiles slated to hit the market. A123
isn't presently profitable, but analysts still see revenue surging from $120
million this year to $270 million next year. By the time it gets there, the
stock is unlikely to remain in the single digits.
Five for the road
These five stocks aren't trading in the single digits by accident. If I'm
right about the catalysts, though, they may not be trading in the single
digits for too much longer.
Finding promising stocks while they're still cutting their baby teeth is at
the heart of the Rule Breakers newsletter that I write for. You can check it
out for free this month with a 30-day trial subscription. There are nearly
a dozen active stock recommendations in the growth stock research service
trading for less than $10 at the moment, including Exelixis. Check those out
, and I'll be back with more on the third Monday of next month. |
|
