Top 9 Stocks Under $10 per Share

Investors seem to love low priced stocks, due to the fact that perceived potential gains from price movements appear to be higher than high priced stocks. After all, a ten cent rise on a one dollar stock is 10%, ten cent gain on a $10 stock is only 1%, and an increase of 10 cents on a hundred dollar stock is only one tenth of a percent.

The fact is that high priced stocks can move just as much on a percentage basis as low priced stocks. Yet investors still want the low prices.

When looking for quality low priced stocks to buy, investors generally look for several factors from a fundamental standpoint. They are:

1. The stock sells for less than $10 per share.
2. The stock has a price to earnings ratio under 20.
3. The stock has a forward P/E ratio less than 20.
4. The stock has a price to earnings growth ratio under 2.
5. The stock has no debt or low debt to equity.
6. And to top it off, the stock pays a dividend.

The following nine stocks have all these features, and deserve a closer look.

Company	Ticker	Market Cap	P/E	Price	Yield
Crown Crafts, Inc.	CRWS	84.90M	14.39	8.49	3.80%
Digirad Corporation	DRAD	104.87M	4.91	5.40	3.40%
Evolving Systems Inc.	EVOL	63.13M	16.88	5.40	8.10%
Heritage Oaks Bancorp	HEOP	291.72M	18.06	8.49	2.90%
Leju Holdings Limited	LEJU	781.03M	14.50	5.80	13.30%
Magic Software Enterprises Ltd.	MGIC	256.79M	16.23	5.68	3.30%
MiX Telematics Limited	MIXT	168.00M	11.98	5.03	3.70%
Pzena Investment Management	PZN	638.03M	18.96	9.67	1.30%
Supreme Industries Inc.	STS	129.91M	12.53	7.77	1.50%

What is interesting is that all these little gems have yields in excess of 1.25%. Keep in mind that the market cap on these companies is low. If you like interesting stock lists like this, check out many of the free stock lists at WallStreetNewsNetwork.com.

100 High Yield Stocks Below $10 per Share

If you ask the average investor if they prefer a low price stock over a high price stock, all things being equal, most prefer the lower price stock. As a matter of fact, even if all things weren't equal, many investors would prefer the lower priced stock. Psychologically, it feels good to buy the lower priced stocks. Investors think it is just as easy for a low price stock to rise one point as it is for a high price stock, even though in actuality it isn't true. So investors figure a one point rise in their ten dollar stock gives them a ten percent return, whereas the hundred dollar stock would return only one percent.
One strategy that low price stock investors can utilize is searching out ones that pay high dividends. The dividends provide an income and returns invested capital back to the investor, reducing the amount at risk. WallStreetNewsNetwork.com just updated its list of high yield stocks below $10 a share, turning up over a hundred different companies.
One example is PDL BioPharma (PDLI), which is involved in the humanization of monoclonal antibodies and the discovery of targeted treatments for cancer and immunologic diseases. The stock, which currently trades for less than $7 per share, provides a generous yield of 9.3%. The dividend is currently paid quarterly and has been paying dividends fairly regularly since 2006. The total dividend payout is $84 million is extremely well covered by the company's operating cash flow of $200 million. The stock trades at 5.4 times current earnings and 3.6 times forward earnings. Latest reported quarterly earnings were down about 10% on a 7.2% drop in earnings.
Alumina Ltd. (AWC) is an Australian company involved in the bauxite mining, alumina refining, and aluminum smelting businesses. The stock sports a very decent 6.9% yield, payable semi-annually. Dividends have been paid since 1990. Operating cash flow is $196 million, covering the $146 million in total dividend payouts. The current price to earnings ratio is 17.8, and the forward PE is 5.2. The stock sells for less than $4 a share.
Other low price high yielders include Crown Crafts Inc. (CRWS) paying 5.9%, Giant Interactive Group, Inc. (GA) yielding 5.7%, and Hickory Tech Corp. (HTCO) at 5.9%. To access a free list of over 100 high yield low price stocks, go to WallStreetNewsNetwork.com.
Disclosure: Author didn't own any of the above at the time the article was written.
By Stockerblog.com