Investing

5 Analyst Stock Picks Under $10 With Massive Upside Potential

Cronus

This marijuana company had a major international company take a large position late in 2018. Cronus Group Inc. (NASDAQ: CRON) is a global cannabis company founded in 2012 and based in Ontario, Canada, with a presence across five continents. Its principal activities are the production and sale of cannabis and cannabis-derived products in federally legal jurisdictions.

Back in December of 2018 Altria agreed to buy a 45% stake in Cronos for about $1.8 billion, a sign of the new world in which the tobacco company must compete. This strategic partnership provided Cronos with additional financial resources, product development and commercialization capabilities, and deep regulatory expertise to better position it to compete, scale and lead the rapidly growing global cannabis industry. The $1.8 billion investment in Cronos, and 45% stake, also gives Altria the option to increase to full ownership if it so chooses down the road.

A gigantic $13.52 price target accompanies the Raymond James Outperform rating. No consensus target was available. The shares have mostly traded between $6 and $7 for the past month.

Nokia

This telecommunications company once ruled the cell phone arena, until the advent of the smartphone in 2007. Nokia Corp. (NYSE: NOK) owns two main businesses: 1) Nokia Networks, a network infrastructure equipment supplier to global wireless and wireline operators, and 2) Technologies, its patent/IPR licensing activities.

Last year, Nokia, NTT Docomo and Omron agreed to conduct joint field trials using 5G at their plants and other production sites. As part of the trial, Nokia will provide the enabling 5G technology and Omron the factory automation equipment, while NTT Docomo will run the 5G trial.

The trial follows the increasing demand for wireless communications at manufacturing sites driven by the need for stable connectivity between Internet of Things devices. As background noise from machines and the movement of people have the potential to interfere with wireless communications, the trial will aim to verify the reliability and stability of 5G technology deployed by conducting radio wave measurements and transmission experiments.

Note that this technology stock routinely appears in the under $10 category and analysts who have been bullish on Nokia long term have been wrong for years, with their upside targets rarely coming close to fruition.

Northland Securities has a Buy rating and a $6 price target. The posted consensus target is $4.66, and Nokia stock has traded above $4 since the beginning of June.

Sorrento Therapeutics

This is among the many companies in the race for a COVID-19 vaccine. Sorrento Therapeutics Inc. (NASDAQ: SRNE) engages in the research, development and manufacture of biopharmaceutical products. It focuses on therapies to treat specific stages in the evolution of cancer, from elimination to equilibrium and escape, which include biosimilars, immuno-oncology antibodies, cellular therapy, cell internalizing antibodies and antibody drug conjugates.

Last week the company received clearance from the FDA to initiate a Phase 2 trial of abivertinib in patients with COVID-19 who have moderate to severe pulmonary symptoms. Back in May, Sorrento announced that it had entered into a binding term sheet for an exclusive license to ACEA Therapeutics’ abivertinib across all indications for all territories outside of China. The parties have since entered into an exclusive license agreement.

Since abivertinib targets multiple cytokines simultaneously, Sorrento anticipates that the effects of abivertinib will be incremental to the initial published findings by others for IL-6 inhibitors targeted for COVID-19 trials, and the clinical benefits will be more pronounced given the broader range of anti-cytokine activity.

H.C. Wainwright has a stunning $24 price target and a Buy rating. The consensus price objective is $23. The shares slipped below $8 late in the week.


These five companies have all been sent to the single-digit midget penalty box. Some of them may have a difficult road back to prosperity, but given what we have seen in the past, and the massive liquidity being provided by Washington, D.C., the odds are good that each survives this downturn.

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