Most firms on Wall Street focus on large and mega cap stocks as they provide a degree of safety and liquidity. Unfortunately, many investors are limited in the number of shares they can buy. Many of the biggest public companies, especially the technology giants, trade in the low to mid hundreds, and some all the way up to over $1,000 per share. At those steep prices, it’s pretty hard to get any decent share count leverage.
Many investors, especially more aggressive traders, look at lower-priced stocks as a way to not only make some good money but to get a higher share count. That can really help the decision-making process, especially when you are on to a winner, as you can always sell half and keep half.
We screened our 24/7 Wall St. research database and found five stocks trading under the $10 levels that could provide investors with some solid upside potential. While more suited for aggressive accounts, they could prove exciting additions to portfolios looking for solid alpha potential.
This small-cap clinical-stage biotechnology company has big-time potential. Cidara Therapeutics Inc. (NASDAQ: CDTX) is engaged in the discovery, development and commercialization of anti-infectives. It is developing a pipeline of product and development candidates with a focus on serious fungal infections.
The company’s product portfolio consists of more than two formulations of its echinocandin, CD101. CD101 IV is a long-acting therapy for the treatment and prevention of serious, invasive fungal infections. CD101 topical, its second product candidate, is being developed for the treatment of vulvovaginal candidiasis (VVC) and recurrent VVC, a prevalent mucosal infection.
Citigroup has a Buy rating on the stock and an $8 price target. The Wall Street consensus target is much higher at $13.06. The shares traded on Friday’s close at $4.45.
This gaming stock could have some big upside for aggressive accounts. Glu Mobile Inc. (NASDAQ: GLUU) develops, publishes and markets a portfolio of mobile games. The company develops and publishes a portfolio of mobile games designed to appeal to a cross-section of the users of smartphones and tablet devices.
The company’s portfolio of games include Contract Killer, Cooking Dash, Covet Fashion, Deer Hunter, Design Home, QuizUp, Racing Rivals and Tap Sports Baseball, as well as games based on third-party licensed brands, including Gordon Ramsay DASH, Kendall & Kylie, and Kim Kardashian: Hollywood.
Piper Jaffray rates the stock a Buy and has a $7.50 price target. The consensus target is $6.96, and shares closed on Friday at $5.50.
More aggressive investors may want to consider this smaller cap gold miner. Kinross Gold Corp. (NYSE: KGC) engages in the acquisition, exploration, development and production of gold properties. The company’s gold production and exploration activities are carried out principally in Canada, the United States, the Russian Federation, Brazil, Chile, Ghana and Mauritania. It also produces and sells silver.
Kinross announced last year that it will proceed with the Tasiast Phase Two and Round Mountain Project W projects. At full production by 2020, CEO Paul Rollinson sees these two projects stabilizing the company’s gold equivalent output in the 2.5 million ounce range. Trading at a discount to the peer producers, some believe that this valuation gap could be closed due to these projects.
Merrill Lynch rates the stock a Buy, and its price objective of $4.75 compares to the consensus price target of $4.91. The shares ended the week trading at $3.59.
This is a solid energy exploration and production play. Kosmos Energy Ltd. (NYSE: KOS) is a conventional oil and gas exploration and production company focused on the Atlantic margin. Its focus is on unlocking new hydrocarbon systems and growing and maturing discovered basins through follow-on exploration success, development and production.
Although many companies in the sector have scaled back exploration, Kosmos believes this is the best route to generating value, seeking to replicate its discovery and development of the Jubilee field in Ghana.
Jefferies has a Buy and a $9.50 price objective, while the posted consensus target is $8.98. The shares closed at $7.62 on Friday.
Jefferies has covered this company for years and believes the low price makes it an attractive takeover target. Rigel Pharmaceuticals Inc. (NASDAQ: RIGL) is engaged in the discovering, developing and providing novel small molecule drugs that improve the lives of patients with immune and hematological disorders, cancer and rare diseases.
The company’s pioneering research focuses on signaling pathways that are critical to disease mechanisms. Its clinical programs include clinical trials of fostamatinib, an oral spleen tyrosine kinase inhibitor, in a number of indications.
The $7 Jefferies price target is less than the $7.92 consensus target. The shares traded most recently at $2.81 apiece.
These are five stocks for aggressive accounts that look to get share count leverage on companies that have sizable upside potential. While not suited for all investors, these are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage them.