Technology

Top Boutique Brokerage Firm Has 5 Red-Hot Tech Stocks to Buy Under $10

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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. 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’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 week we screen our 24/7 Wall St. research database looking for stocks rated Buy at top Wall Street firms priced under the $10 level and this week we found five new stocks covered by the analysts at Roth Capital Partners that could provide investors with some solid upside potential. While more suited for aggressive investors, they could prove exciting additions to portfolios looking for solid alpha potential.

it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Lantronix

This company is producing solid revenue and is a great idea for aggressive traders. Lantronix Inc. (NASDAQ: LTRX) provides software as a service (SaaS), engineering services and hardware for edge computing, the Internet of Things (IoT) and remote environment management in the Americas, Europe, the Middle East, Africa and the Asia Pacific Japan.

The company’s IoT products include IoT Connectivity, which provides wired and wireless connections that enhance the value and utility of modern electronic systems and equipment through secure network connectivity, application hosting, protocol conversion, secure access for distributed IoT deployments and various other functions.

Further, its SaaS platform enables customers to deploy, monitor, manage and automate across their global deployments through a single platform login. The company offers its products through value added resellers, systems integrators, distributors, online retailers and original equipment manufacturers, as well as an e-commerce site for direct sales. Lantronix was founded in 1989 and is headquartered in Irvine, California.

Roth Capital has set its price objective for the shares at $6.60. That compares with the $6.17 Wall Street consensus price. The shares have traded between $4 and $5 for the past month.

ORBCOMM

If IoT excites investors, then this is an outstanding small-cap play. ORBCOMM Inc. (NASDAQ: ORBC) offers network connectivity, devices, device management and web reporting applications that are designed to track, monitor, control and enhance security for various assets, such as trailers, trucks, rail cars, sea containers, power generators, fluid tanks, marine vessels, diesel or electric powered generators, oil and gas wells, pipeline monitoring equipment, irrigation control systems and utility meters in transportation and supply chain, heavy equipment, fixed asset monitoring and maritime industries, as well as for governments.

It also provides satellite automatic identification service data services for vessel navigation and to enhance maritime safety for government and commercial customers. It provides vehicle fleet management, as well as in-cab and fleet vehicle solutions using various network platforms, including its own constellation of low-Earth orbit satellites and accompanying ground infrastructure, as well as terrestrial-based cellular communication services through reseller agreements with various cellular wireless providers.

In addition, the company offers customer solutions utilizing additional satellite network service options through service agreements with third-party mobile satellite providers, and it resells service using the two-way Inmarsat satellite network to provide higher bandwidth.

Roth Capital has a $7.50 price target, which is in line with the consensus target of $7.40. Shares recently crossed the $6 mark for the first time in more than a year.


One Stop Systems

The analysts anticipate rising earnings for this company One Stop Systems Inc. (NASDAQ: OSS) engages in the design, manufacture and marketing of computing systems and components.

The One Stop Systems segment includes manufacturing of computing systems for computing applications. The Concept Development Inc. segment offers in-flight entertainment systems for commercial aircraft. Its third segment is Bressner Technology GmbH.

The Roth Capital price target is $5.50, while the consensus target is $4.33. The stock has been trading just north of $2 lately.

Smith Micro Software

The analysts see some big upside for this stock from current trading levels. Smith Micro Software Inc. (NASDAQ: SMSI) develops and sells software to enhance the mobile experience to wireless and cable service providers worldwide.

The company provides SafePath Family, a platform that provides family real-time location, protection and parental control services, as well as SafePath Internet of Things, a platform that enables mobile service providers to deliver a connected digital life experience through child and elderly wearable locators, pet trackers, car trackers and connected home security devices.

It also offers SafePath Home, a cloud-managed platform that extends to connected devices in the home through a router agent that integrates with 5G modems and broadband routers to enable parental controls and remote monitoring, and CommSuite, which allows users to manage voice messages, as well as voice-to-text transcription messaging. In addition, the company provides ViewSpot, a retail display management platform that provides on-screen and interactive demos to wireless carriers and retailers, as well as offers analytical capabilities and technical support and customer services.

The $9.50 Roth Capital price objective is well above the $7.25 consensus target. Shares have been on a roll and crossed the $5 level this week.

Sequans Communications

This off-the-radar play has among the biggest upside potential in the Roth Capital technology universe. Sequans Communications S.A. (NYSE: SQNS) develops and provides 5G and 4G chips and modules for massive, broadband and critical IoT markets.

For 5G/4G massive IoT applications, the company provides a comprehensive product portfolio based on its flagship Monarch LTE-M/NB-IoT and Calliope Cat 1 chip platforms featuring low power consumption, a set of integrated functionalities and deployment capability.

For 5G/4G broadband and critical IoT applications, Sequans Communications offers a product portfolio based on its Cassiopeia Cat 4/Cat 6 4G and high-end Taurus 5G chip platforms optimized for residential, enterprise and industrial applications.

The massive $13 Roth price target is much higher than the $10.10 Wall Street consensus. The stock was trading just above the $4 level late in the week.


These are five stocks for very aggressive investors looking to get share-count leverage with stocks that have sizable upside potential. While not suited for all investors, these are not penny stocks with absolutely no track record or liquidity, and other major Wall Street firms also have research coverage.

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