Many stock traders, and investors also, prefer low priced stocks. Although the price of a stock really shouldn't make much difference, from a psychological standpoint, the stocks selling for under $10 a share seem like a better buy, and it also seems like potential for greater potential gains may be greater than higher priced stocks.
If you check out some of the stocks under $10 with gains recently, you would see that Great Basin Scientific, Inc. (GBSN), which closed at 2.73 on Friday, jumped by over 40% in one day! China Information Technology, Inc. (CNIT), which closed at 4.62, rose by 22%, and Euro Tech Holdings Company Limited (CLWT), which ended the day at 3.52, went up by 30% in one day.
Obviously, you can't catch every one day spikes like these, but if you choose stocks with strong earning per share growth potential over the next five years and high sales growth, you should be able to catch one of these big movers at some point.
One stock that fits these credentials is Good Times Restaurants Inc. (GTIM), the Golden, Colorado based operator and franchiser of hamburger style drive-through restaurants. The stock closed at 7.43 a share last week. Revenues for the latest quarter soared 32.9% year-over-year. The company has only $712,000 in debt, with $11.5 million in cash, having $1.22 in cash per share.
Ariad Pharmaceuticals Inc. (ARIA) is a $1.5 billion market cap company trading for less than 8.40 per share. This Cambridge, Massachusetts company specializes in cancer treatments. Year-over-year revenues went up by 700%. Even on a quarter-by-quarter basis, revenues increased by 355% over the previous quarter, and the company's net loss dropped dramatically.
Here is one more. Health Insurance Innovations, Inc. (HIIQ) is a $66 million market cap company in the business of cloud based individual health insurance plans, and is based in Tampa, Florida. The stock closed at 8.51 per share. Quarterly revenue growth year-over-year was 67.7%. On a quarter by quarter basis, revenues have been growing steadily over the last year with an increase of 13.5% for the latest quarter. Also for the latest quarter, earnings went from a loss of $674 thousand to net income of $74 thousand. What I like about this company is that it is debt free, with $14.72 million in cash, or a $1.89 in cash per share.
Hopefully one of these low priced stocks will turn into a high priced stock for your portfolio. For other interesting stock lists like this, go to the free stock lists at WallStreetNewsNetwork.com.
Disclosure: Author didn't own any of the above at the time the article was written.