- 5 Rocket Stocks for Gluttonous Turkey Day Gains
- Time to Sell These 5 'Toxic' Stocks
- 5 Earnings Short-Squeeze Plays
- 5 Must-See Charts
- 5 Stocks With Big Insider Buying
5 Quality Stocks Under $15 - 36565 views
In July I listed five stocks under $15 based on a combination of value and technical factors.
The primary purpose of this screen/system is to seek low-priced stocks still trading at reasonable valuation ratios with price momentum and a positive trend.
The second goal is to be long high-beta, riskier stocks when the market is fundamentally and technically favorable. This is accomplished by:
• investing in stocks with price momentum
• investing when the S&P 500 EPS estimate is trending upward
• investing when the S&P 500 risk premium is above 1%
• investing only when the underlying benchmark is above the 200-day moving average on the day of rebalancing/screening
As of today, the above four requirements are being met. The current top five stocks under $15 based on quality, value and momentum are UFP Technologies (UFPT), SL Industries (SLI), LJ International (JADE), ADDvantage Technologies Group (AEY) and RCM Technologies (RCMT).
Each company has a price-to-sales ratio below 1, low price-to-earnings and low long-term debt-to-equity. (ADDvantage has the highest long-term debt-to-equity ratio at 0.39.)
The drawback of the qualifying stocks is that they are all small- or micro-cap stocks that may have relatively thin trading volumes. However, all have a minimum daily volume of at least 10,000 shares.
Of special note is that RCM Technologies is currently fighting a hostile bid takeover from CDI (CDI) at $5.20 share. The outcome of this takeover attempt could affect the share price in the near future.
focuses on consolidating and tracking free online investment resources
for the public with an emphasis on ETFs, portfolio/trading strategies