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 priced under the $10 level and this week was no exception (last week’s picks included Nokia and Zynga). This week, we found five new stocks that could provide investors with some solid upside potential. Skeptics of low price shares should remember that at one point both Amazon and Apple traded in the single digits.
While more suited for aggressive investors, and with the number of new traders skyrocketing over the past year, making good ideas to trade even harder to find, these five stocks could prove exciting additions for traders looking for solid alpha potential. It is important to remember, though, that no single analyst report should be used as a sole basis for any buying or selling decision.
This real estate investment trust (REIT) pays a very solid dividend. BrightSpire Capital Inc. (NASDAQ: BRSP) operates as a commercial real estate credit REIT in the United States that focuses on originating, acquiring, financing, and managing a portfolio of commercial real estate senior mortgage loans, mezzanine loans, preferred equity, debt securities and net leased properties.
Because the company qualifies as a REIT for federal income tax purposes, it generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Colony Credit Real Estate and changed its name to BrightSpire Capital in June.
Investors receive a 6.58% dividend. BTIG Research has an $11.50 price target on the shares. The consensus target is $12, and the stock closed on Friday at $9.46 a share.
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