A number of stocks are available under $5 for investors whose primary focus is growth investing,
identifying companies with high potential investment returns. As of
2015, three small-cap stocks worth investors' consideration and selling
for under $5 are FuelCell Energy, Inc. (Nasdaq: FCEL), MeetMe, Inc. (Nasdaq: MEET) and Navios Maritime Holdings, Inc. (NYSE: NM).
A number of positive aspects to small-cap stocks include huge growth potential and the fact they are often under-recognized, meaning they may also be undervalued. However, because most of these stocks do not have sufficient history and profitability to offer investors dividends, they are more suitable for growth or value investors and usually unsuitable for income investors.
Though its stock price as of July 2015 was selling for $1.05 per
share, its consensus target price is near $3. Many investors expect big
things from this stock as greater emphasis is placed on environmental
concerns, and as the Environmental Protection Agency, or EPA, continues
to issue new regulations. The primary risk for investors thus far has
been significant volatility in the stock's price.
As of July 2015, the per share price for this stock was just over $1.60, with a consensus price target of $3.83. Zacks Investment Research lists this stock as a strong buy. There is considerable room for growth and profit as the mobile communications and gaming industries continue to become more popular. One cautionary note is less disposable income has recently led to reductions in purchases of gaming software apps.
As of July 2015, the stock was selling for $3.60 per share, with a consensus target price among analysts of $9.25. The transportation of dry bulk commodities is essential, and this company continues to be a world leader in the market. However, it is subject to fluctuating commodity market prices and competition from other shipping firms. Another risk factor is the company's narrow profit margin.
Small-Cap Stocks
Small-cap stocks have market capitalizations that fall between $250 million and $2 billion. These stocks can trade on any exchange; however, most are found on the Nasdaq or traded on the over-the-counter bulletin board, or OTCBB. It is important for investors to understand the difference between small-cap stocks and penny stocks. Though the terms are often used interchangeably, they are very different. There are many small-cap stocks that trade at more than $1 per share, are traded on major exchanges including the NYSE and the Nasdaq and maintain much greater liquidity than is typical of the average penny stock.A number of positive aspects to small-cap stocks include huge growth potential and the fact they are often under-recognized, meaning they may also be undervalued. However, because most of these stocks do not have sufficient history and profitability to offer investors dividends, they are more suitable for growth or value investors and usually unsuitable for income investors.
FuelCell Energy, Inc.
www.fuelcellenergy.com/
FuelCell Energy is a global leader in the development and marketing of ultra-clean power plants that can generate electricity with up to two times the efficiency of conventional fossil fuel plants. These plants also emit virtually no air pollution and have reduced greenhouse gas emissions by utilizing a variety of fuels that include natural gas and renewable biogas from wastewater treatment and food processing. The plants provide baseload-distributed generation to universities, utilities companies, water treatment facilities and a variety of other customers around the world.MeetMe, Inc.
www.meetmecorp.com/
MeetMe is one of the foremost social networks available to connect people in the United States. This company is user-friendly and allows individuals to discover new people and make connections via chat rooms and messaging on mobile devices. The company also allows individuals to connect and share through games and apps that are monetized through virtual currency and advertising. It operates several sites, MeetMe.com and Quepasa.com, and MeetMe apps on iPhone and Android mobile phones. Nearly 80% of the company’s traffic comes from mobile usage, and the current daily active user total is over a million, and growing.As of July 2015, the per share price for this stock was just over $1.60, with a consensus price target of $3.83. Zacks Investment Research lists this stock as a strong buy. There is considerable room for growth and profit as the mobile communications and gaming industries continue to become more popular. One cautionary note is less disposable income has recently led to reductions in purchases of gaming software apps.
Navios Maritime Holdings, Inc.
www.navios.com/home.asp
Navios Maritime Holdings, Inc. is a globally integrated seaborne shipping and logistics company that focuses on the transportation of dry bulk commodities, including coal and grain. Consisting of 66 vessels, the company’s fleet can transport a total of 6.3 million deadweight tons. It operates in Europe, Asia, North America and South America.As of July 2015, the stock was selling for $3.60 per share, with a consensus target price among analysts of $9.25. The transportation of dry bulk commodities is essential, and this company continues to be a world leader in the market. However, it is subject to fluctuating commodity market prices and competition from other shipping firms. Another risk factor is the company's narrow profit margin.
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