The Five Bucks Stop Here: A Look in the Bargain Bin
A friend of mine has begged me for at least a year for a column on a particular topic. Not an expose of all the thieving chief executives whose comeuppance has punished the lousy stocks he owned over the past few years. And not a piece explaining Dow 30 underfunded pension liabilities.
No, the piece my friend and probably thousands of others still want to read would end up with a headline like this: "Ten $5 Stocks to Buy Now!"
It's hard to believe, after all we've been through, that the life-affirming human penchant for getting rich on an investment of pennies still thrives. But since we're all about service here at SuperModels, this week I finally ran my screen for Fantastic Fivers with high hopes of finding a few cheapos worth the pocket change.
Here are the results. But I can't give them my strongest recommendation, because this is still a bear market -- and in bear markets, it pays to be a net seller of stocks, not a buyer.
| Fabulous Fivers?
|Company Name||SS Rating||Sector||Avg. vol.||Sept. 30 close|
|TriZetto Group (TZIX)||9||Technology||103,900||4.98|
|Cardinal Financial (CFNL)||9||Finance||23,600||4.16|
|ClearOne Communications (CLRO)||8||Technology||148,500||3.41|
|OrthoLogic (OLGC)||8||Health Care||96,800||3.87|
|Monterey Pasta (PSTA)||8||Consumer non-durables||51,200||4.65|
|Trover Solutions (TROV)||8||Health Care||32,000||4.01|
|SM&A (WINS)||8||Consumer services||22,300||3.04|
More Hedges on a Volatile MarketWhat I can recommend instead is a hedged portfolio made up of five to 10 top StockScouter long recommendations for October and five to 10 top StockScouter short recommendations. This strategy has worked extremely well over the past year and a half, yielding positive results in every month since its inception in July 2001. It's different from the hedge portfolio that I recommended in my
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