$10 and $20 Stocks That Can Make You 20%

This is a pretty diverse list that appears to minimize risk. It tends toward small-caps, but there are a few mid-caps and large-caps as well. And the sectors are all over the map, ranging from high-yielding real estate investment trusts to cable TV to banks, software, a utility and an oil driller. Most have the wind at their backs, although a couple are coming off one-year lows.

Here are the ones that appear the most interesting:

• Cornerstone Realty Income Trust (TCR Quote), which pays an 8% dividend, owns and manages high-end and mid-range apartment complexes in Virginia, the Carolinas, Georgia and Texas. Returns have been solid, if unspectacular. Financial results were only fair in the last quarter, but the company says leasing momentum has strengthened. Considering the yield, though, this $10 stock only needs to advance $1.20 in the next year to provide a 20% return. It traded in the mid- to high-$11 range in most of 2001 and 2002 and appears headed back to that area.
• Siebel Systems (SEBL Quote), which sells software that helps large companies manage their marketing teams, only needs to get to $12.06 -- a level it held as recently as April. Revenue has steadily declined in recent quarters, making the stock as cheap as it has been in years -- though it's still not inexpensive. To envision $12, investors would need to be optimistic about economic growth and corporate IT spending over the next 12 months. That makes Siebel something of a long shot.
• PolyOne (POL Quote), which makes plastics and resins, needs to get to $11.25, which seems doable even though it hasn't seen that level since 2002. Sales and earnings trends have been passable, the valuation is constructive and buyers have been coming into all plastics and chemical companies in recent months.

A More Dynamic List

The highly rated stocks that have the potential to advance 20% by moving from around $20 to around $24 are a little more compelling in some ways. As you can see below, you have your choice of a Taiwanese wireless giant, a major U.S. oil-and-gas exploration company, a major maker of painkillers, a major oil shipper and a Dallas-based commercial bank.

Markman's $20 Portfolio $24 or so is the desired destination for these stocks
Company	Size	Style	Industry	MSN StockScouter Rating	Nov. 26 Close
Chung Hwa Telecom (CHT:NYSE)	Large	Growth	Wireless communications	10	$20.59
Patterson-UTI Energy (PTEN:Nasdaq)	Mid	Growth	Oil and gas drilling	10	$20.21
OMI (OMM:NYSE)	Mid	Growth	Shipping	10	$20.25
Hornbeck Offshore (HOS:NYSE)	Small	Growth	Shipping	10	$20.10
Endo Pharmaceuticals (ENDP:Nasdaq)	Mid	Growth	Drug manufacturing	9	$20.46
Eclipsys (ECLP:Nasdaq)	Small	Growth	Health care information technology	9	$19.73
Applied Biosystems (ABI:NYSE)	Mid	Growth	Scientific and technical instruments	8	$20.77
Cleco (CNL:NYSE)	Small	Value	Electric utilities	8	$19.73
Interactive Data Corp. (IDC:NYSE)	Mid	Growth	Computer services	8	$20.47
Source: MSN Money