While most of Wall Street focuses on large and mega cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy. Often the biggest public companies, especially the technology giants, trade in the low-to-mid hundreds, 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.
Each and every week, we screen our 24/7 Wall St. research database looking for stocks rated Buy at major firms and priced under the $10 level (last week’s picks included Zynga), and this week was no exception. We found five more stocks 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 a microcap medical company with huge upside to the target price. Agile Therapeutics Inc. (NASDAQ: AGRX) is a health care company that engages in the development and commercialization of a transdermal patch. Its lead product candidate, Twirla, also known as AG200-15, is an investigational low-dose, nondaily prescription contraceptive.
The company announced last month that it resubmitted to the U.S. Food and Drug Administration (FDA) a new drug application for Twirla in response to a December 2017 complete response letter from the FDA that identified deficiencies relating to quality control adhesion test methods for the Twirla manufacturing process and observations identified during an inspection of a facility of a third-party manufacturer for the Twirla NDA that must be resolved.
The resubmitted application includes the results from a comparative study that was conducted at the request of the FDA to address the agency’s questions on in vivo adhesion, additional information on the company’s manufacturing process and other analyses responding to the 2017 letter.
Oppenheimer has an Outperform rating and a gigantic $5 price target for the shares, and that compares to the Wall Street consensus target of $3.50. The shares traded on Friday’s close at $1.13.
This company could be an off-the-radar play for investors looking for a marijuana pick with lower name recognition. CannTrust Holdings Inc. (NYSE: CTST) produces and distributes pharmaceutical grade medical cannabis products in Canada. It sells dried cannabis and oil extractions to the client based on the medication document provided by health care practitioner. The company has a partnership with Gold Coast University Hospital.
CannTrust also focuses on developing nanotechnology to create new products in the medical, recreational, beauty, wellness and pet markets. In addition, the company recently completed a successful secondary offering, and management noted in late April it expects to report a strong first quarter.
BMO started coverage on the shares recently with an $11 price target. The shares were trading at $5.25 on Friday’s close.