Stocks Under $10 To Consider For Your Portfolio
Usual disclaimer: I am not a licensed investment advisor nor am I qualified to give financial advice…and if I own any of these stocks, I’ll let you know, etcetera, and so on, yada yada…yada.
I was reading an article yesterday on The Motley Fool by Brian D. Pacampara titled “5 Low-Priced, High-Star Stocks” and it got me thinking…I’ve had success with low-priced stocks in the past. Why not share those with you.
Brian and I both share the parameter for “low-priced stocks”: $10 per share or less…but no less than $1. He adds that
…nothing trounces Mr. Market quite like a $1 stock that moves into double digits over just a short period of time. Unfortunately, because of the numerous risks that low-priced stocks carry, these mega-multibagger returns don’t occur as frequently as one would hope.
Right-o. But I’ve got a pretty good track record if I must say. It’s really important to do your own due diligence when it comes to picking low-priced stocks. Really important. That should include industry and economy in addition to company-specific technicals or financial statements. And keep in mind that Brian runs his stocks through the Motley Fool CAPS “intelligence database” for a star rating as well.
Get To It Already: The Picks
One of the stocks Brian mentions is SIFY [Nasdaq]. SIFY (Sify Limited) is a company in India offers corporate network/data, Internet access, and online portal services. Two magic words here: India and Internet. “India” covers the “don’t put all your eggs in one [country] basket” (i.e., U.S.-only stocks). “Internet”, however, is the most magical word in my non-financial advisor opinion. According to a comScore Networks, the worldwide Internet audience has grown 10% (Jan 2006 to Jan 2007). India’s audience has grown 33%. I guarantee you Sify loves that number. I bought SIFY back in July 2006 with the anticipation that it would benefit from the improving Indian economy and infrastructure. As you can see in the chart below, I’ve lost some money. But I have faith…and it just barely busted my “don’t be a greedy pig†policy. For stocks under $10 per share, that means I generally sell them [1] when I’ve lost 15% or [2] when I gain 20%, unless they pay a dividend. And, of course, there are exceptions.
I don’t know alot about Brian’s other suggestions, so I won’t comment on them. But you can bet I’m going to take a look at them tonight. Here are a few others I’ve done well with and that I am considering as future investments. And like Brian, I’ll pawn them off as “ideas”…not recommendations. 
| Company | Ticker | (Y or N) |
(% Yield) |
|
| Qwest Communications | NYSE: Q | |||
| Star Gas Partners LP | NYSE: SGU | |||
| Six Flags Inc. | NYSE: SIX | |||
| GP Strategies Corp. | NYSE: GPX | |||
| Jones Soda Co. | NASDAQ: JSDA |
Past performance does not guarantee future results.
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March 20th, 2007 at 7:35 am
Great post!.. thanks for the tips
March 20th, 2007 at 8:25 am
[…] So, get out there and buy some stocks. I suggested a few stocks under $10 last week. I’m just plating seeds here. I’m no licensed investment advisor, but I’ve got some experience and wish to share it. Do with it as you wish…and good luck. […]
November 20th, 2007 at 9:56 am
You ask “Why not share those with you”. Because that is one of the first rules in stock investing - never invest in stocks that someone else recommends or stocks that are considered to be “hot” in the moment. In this case we are not talking about “hot” stocks and it is true that the stocks you point are cheap but still … at least I personally always obey the rule “don’t count on recommendations”.
November 20th, 2007 at 1:53 pm
I respect your investing rule, but to say it’s one of the “first rules” of investing is probably a little extreme. If that were the case, stock brokers and shows such as Kramer and CNBC would be out of luck.
I’m a huge believer in due diligence. You have to do your own. I realize this may be stuff you already know and practice. Even “hot” stocks (or stocks that you are alluding to as having already reached their peak) stay hot on occasion. Even though I’m more leary of those, I still avoid writing them off as done. Google is the perfect example. I wouldn’t recommend anyone buy it at this level, but for all I know, it could be $1,000/share in a year. That would blow my mind.
I think you get what I’m saying. And I agree with “don’t count on recommendations”. As I’ve mentioned in previous posts, ALWAYS do your own due diligence.
November 21st, 2007 at 1:20 am
Yes, I get what you are saying and that was my point too, but I guess I didn’t say it right enough. I didn’t mean “don’t bet on recommended stocks at all costs”. I just wanted to make a point that no matter no matter how genuine it looks, one should always do his/her own research.
November 21st, 2007 at 9:02 am
I got what you were saying. I guess I was trying to clarify what I meant for other readers. You hit the nail on the head.