The bull market has raged on for more than eight years now, and the major stock market indexes are all up more than 200% from the V-bottom lows of 2009. Despite many scares and many threats, the appetite for stocks remains quite strong and investors have managed to find myriad reasons to buy each and every market pullback. Those same investors are also looking for new ideas.
24/7 Wall St. reviews dozens of analyst research reports each day of the week in an effort to find new ideas for our readers. For established Dow Jones Industrial Average and S&P 500 stocks, most new Buy and Outperform ratings from analysts come with upside targets of 8% to 15%. But some analysts who cover the very speculative small cap stocks have Buy ratings with huge upside targets of 50%, 100% or even more.
Of the many hundreds of analyst calls from April 2017, 24/7 Wall St. has highlighted seven very speculative analyst calls from the past month in which the analysts were calling for 100% or higher upside and where the calls were still active and had not been rescinded as of May 1, 2017.
Investors need to understand that there are serious risks in small cap stocks. Even the most seasoned investors likely will not have heard of some of these companies. Some of them are so small or unknown that we have never even reported on them.
Many investors believe that they can find better value and upside potential in small cap stocks than established stocks. Again, investors better understand that they are also taking far greater risks than traditional Dow and S&P stocks. Many small caps will crash and burn, can suffer business failures, can face delisting from the exchanges or can become zombie companies with no real business nor any real direction.
Low-priced stocks with tiny valuations are almost never suitable for conservative investors. None of these would pass the traditional “widows and orphans” suitability test. Also keep in mind that analysts make errors from time to time, just like everyone else, and the major upside thesis can often change in an instant. Just because one analysts sees great upside doesn’t mean that the outcome is assured.
24/7 Wall St. has issued 11 crucial warnings for value investors in 2017, and those warnings would even be more amplified in these small cap stocks. We have also featured more defensive, high-dividend stocks that would likely hold up better than most stocks if an overdue market correction hits in the summer of 2017.
Here are seven very speculative analyst stocks — again that are full of more risk than the broader stock market indexes — called to rise 100% or exponentially in 2017 or into 2018.
Alimera Sciences Inc. (NASDAQ: ALIM) was started with a Buy rating at Rodman & Renshaw in the final week of April, but what stood out was the $4 price target, which is well over 150% higher than the $1.46 prior closing price. Alimera had a 52-week trading range of $1.01 to $2.58 and a market cap of just $95 million. When the stock closed out April at $1.60 a share, its market cap was up to $104 million or so.
The company has data from 25 Iluvien pivotal and post-marketing studies and two presentations on diabetic retinopathy, which will be presented during the 2017 Annual Meeting of the Association for Research in Vision and Ophthalmology from May 7 through May 11.