Investing
5 All-New Stocks to Buy Trading Under $10 With Gigantic Upside Potential
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While most of Wall Street focuses on large and mega cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy. Often the biggest public companies, especially the technology giants, trade in the low-to-mid hundreds, all the way up to over $1,000 per share. At those steep prices, it’s pretty hard to get any decent share count leverage.
Many investors, especially more aggressive traders, look at lower-priced stocks as a way to not only make some good money but to get a higher share count. That can really help the decision-making process, especially when you are on to a winner, as you can always sell half and keep half.
Each and every week, we screen our 24/7 Wall St. research database looking for stocks rated Buy at major firms and priced under the $10 level (last week’s picks included tech, energy and cannabis plays), and this week was no exception. We found five more stocks that could provide investors with some solid upside potential. While more suited for aggressive accounts, they could prove exciting additions to portfolios looking for solid alpha potential.
This micro-cap stock has the potential to double for investors. Civeo Corp. (NYSE: CVEO) engages in the provision of workforce accommodations, logistics and facility management services to the natural resource industry. Its Canada segment provides accommodation services through lodges, open camps and mobile assets, which supports workforces from oil sands and in a variety of oil and natural gas drilling, mining and related natural resource applications, as well as disaster relief efforts.
The Australia segment provides accommodations services on a day rate basis to mining and related service companies, such as construction contractors, while its U.S. segment provides open camp facilities and highly mobile smaller camps that follow drilling rigs and completion crews as well as accommodation, office and storage modules that are placed on offshore drilling rigs and products platforms.
Stifel has a giant $4.50 price target on the shares, and that compares to the Wall Street consensus target of $3.67. The stock has traded below $1.50 for the past week.
This company can benefit from increased construction around the country. Concrete Pumping Holding Inc. (NYSE: BBCP) engages in the provision of concrete pumping services and concrete waste management services. Its brands include US Concrete Pumping-Brundage-Bone, UK Concrete Pumping-Camfaud and Concrete Waste Management Services-Eco-Pan.
The company recently announced plans to acquire Capital Pumping, and the deal is expected to close in the second calendar quarter of 2019. On a pro forma basis giving effect to the acquisition of Capital Pumping expects its net leverage to decline by the end of its fiscal year 2019 to 3.5 times or below from approximately 4.4 times as of December 6, 2018, which is the date Capital Pumping consummated its business combination with Industrea Acquisition. The company believes that it will generate cash flows following the acquisition that will allow it to further reduce its net leverage ratio.
Stifel’s price target is a huge $9, while the consensus target is $8.33. Shares have traded below $4.50 for the past week.
This stock was crushed after clinical data disappointed during the week, but Citigroup keeps a Buy rating on the shares. CymaBay Therapeutics Inc. (NASDAQ: CBAY) is a clinical stage biopharmaceutical company, focused on developing and providing access to therapies for patients with liver and other chronic diseases with high unmet medical need. Its products include MBX-8025, which aims to treat lipid and liver diseases, and Arhalofenate, which intends to reduce gout flares and serum uric acid.
Last Tuesday, CymaBay announced top-line 12-week data from a Phase 2b study of Seladelpar in patients suffering from nonalcoholic steatohepatitis (NASH). The results were mixed. According to the company, reductions in liver fat, a key marker of success in NASH therapies, were not significantly better in patients who received the drug than in patients who received a placebo. Still, the company said that patients who received the drug did demonstrate reductions in liver injury.
CymaBay had performed well this year, rising 40.9% before last Tuesday’s rout erased those gains, and then some. The lead drug in the company’s pipeline, Seladelpar, is designed to treat autoimmune liver diseases.
Citigroup dropped the $22 price target to $12, and the consensus target of $21.64 also could be coming down. Shares retreated last week from nearly $12 to less than $7.
This stock has pulled back sharply and is offering an outstanding entry point. Encana Corp. (NYSE: ECA) is an energy producer focused on developing its multibasin portfolio of natural gas, oil and natural gas liquids (NGLs) producing plays. Its operations also include the marketing of natural gas, oil and NGLs. All of its reserves and production are located in North America.
Its Canadian Operations segment includes the exploration for and development and production of natural gas oil and NGLs and other related activities within Canada. This includes Montney in northeast British Columbia and northwest Alberta and Duvernay in west central Alberta. The USA Operations segment includes the exploration for and development and production of natural gas, oil and NGLs and other related activities within the United States.
Merrill Lynch analysts remain positive on the company and have an $11 price target. The consensus is nearby at $10.54, but the shares were last seen still below $5.
This company’s name actually became a verb years ago when people referred to recording TV shows. TiVo Corp. (NASDAQ: TIVO) provides entertainment technology, software and services. It operates through two segments.
The Intellectual Property Licensing segment consists of International Patent Group patent licensing to third-party guide developers such as multichannel video service providers, consumer electronics and set-top box manufacturers and interactive television software and program guide providers in the online, over-the-top video and mobile phone businesses.
The Product segment covers licensing of company-developed IPG products and services provided for multichannel video service providers and consumer electronics manufacturers, in-guide advertising revenue, analytics revenue and revenue from licensing metadata.
The massive $18 B. Riley FBR price target is still less than the $21.54 consensus target. Shares have traded recently below $7.
Five stocks for aggressive accounts looking to get share count leverage on companies that have sizable upside potential. While not suited for all investors, these are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage.
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