This stock is widely followed on Wall Street and offers a safer aggressive play. SeaSpan Corp. (NYSE: SSW) operates as an independent charter owner and manager of containerships in Hong Kong. The company charters its container-ships under long-term, fixed-rate time charters to various container liner companies. As of February 15, 2018, it operated a fleet of 91 container ships.
Company management recently discussed the focus on capital allocation and shareholder return at the recent analyst day, noting the team’s investor-oriented background. The company recently issued $150 million in preferred stock at an 8% yield. SeaSpan also closed on $150 million unsecured two-year revolver loan, the first of its kind for a container-ship lessor.
SeaSpan investors are paid a solid 6.88% dividend. The $10 Jefferies price target compares with the $8.44 consensus figure. The shares were changing hands Friday at $8.15 apiece.
This asset manager remains an up-and-comer in the exchange traded fund business, with many specialized ETF offerings. Wisdom Tree Investment Inc. (NASDAQ: WETF) currently has over $30 billion in assets under management and continues to benefit from the movement toward ETFs. This is especially true with the specialized currency hedged products, with the potential for significant uptake in interest rate hedged products.
The company has developed proprietary indexes rather than tracking third-party indexes. Its product offering of specialized ETFs, many of which are active or rules-based, generates higher fees than most ETFs. More than two-thirds of the company’s assets under management have international investing objectives.
WisdomTree shareholders are paid a 1.48% dividend. Jefferies has set its price target at $11. The posted consensus target is $10.36, and the stock traded at $7.10 per share.
This is a very aggressive tech play that could have upside above the current price targets. Zynga Inc. (NASDAQ: ZNGA) is a leading developer of mobile and social games. In the company’s relatively short history, it has developed a broad portfolio of games that includes several games on Facebook and several top-grossing mobile apps. Key franchises include FarmVille, Zynga Poker, Hit It Rich Slots and Words With Friends.
With live events growing the company’s revenues, cost-cutting should drive margin expansion, which is very positive. The company also pops up in takeover chatter, and the low price makes it even more attractive. Once again, this week rumors started to flow that a bigger player may be looking to buy the company.
The Jefferies price target is $5.25. The consensus target was last seen at $4.85, and the stock was trading at $4.20 on Friday.
These five stocks are trading under the $10 level and have big upside to the analyst’s price targets. Again, while they are not suitable for conservative accounts, aggressive investors can get some solid share leverage buying 5,000, 10,000 or more shares and can make money on a much smaller share price move.