While most of Wall Street focuses on large-cap 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. Many of the biggest public companies, especially the technology giants, trade in the hundreds, all the way up to over $1,000 per share or more. At those steep prices, it is difficult 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 week we screen our 24/7 Wall St. research database looking for stocks rated Buy at major firms and priced under the $10 level. This week we found five new stocks that could provide investors with some solid upside potential.
With the number of new equity traders skyrocketing over the past year due to the Reddit/WallStreetBets popularity, locating good ideas to trade has become even more challenging. These five could all prove to be exciting additions for traders looking for solid alpha potential. While they are definitely better suited for aggressive investors, it is still important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Ardmore Shipping
With the world economy starting to perk up, this could prove to be an outstanding idea. Ardmore Shipping Corp. (NYSE: ASC) engages in the seaborne transportation of petroleum products and chemicals worldwide. As of August 30, 2019, the company operated a fleet of 27 double-hulled product and chemical tankers. It serves oil majors, oil companies, oil and chemical traders and chemical companies.
On December 17, 2020, the company completed the previously announced $10.0 million loan facility for the Ardmore Seafarer, a 2010 Japanese MR product tanker delivered in August 2020, with Iyo Bank of Japan. The facility has a duration of five years and is priced at LIBOR plus a margin of 2.25%. The covenants and other conditions of the facility are consistent with those of Ardmore’s existing debt facilities.
Stifel has a $6 price target on the shares, and the Wall Street consensus target is $5.43. The shares slipped below $4 apiece on Friday.
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