This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Top 10 Penny Stocks of 2010

9. SMTC (SMTX) is an electronics manufacturing services provider based in Toronto. Shares finished 2009 at 88 cents after spending most of the year trading below the $1 mark.

Closing Price: $3.56 (June 16)

Total Return (YTD): 304.6%

Developments in 2010: In March, SMTC reported a fourth-quarter profit of 16 cents a share, doubling the single-analyst estimate and sending shares higher. SMTC followed that in May by reporting first-quarter earnings from continuing operations of 14 cents a share compared with a year-ago loss of 6 cents a share. Later in May, SMTC said it amended loan agreements with Wells Fargo Capital Finance Corp. and Export Development Canada to refinance its short- and long-term debt. In June, SMTC said it adopted a rights plan, or "poison pill," designed to protect the company's approximately $100 million in U.S. federal net operating loss carry-forwards (NOLs).

Valuation: SMTC shares are trading just below their 52-week high of $4.30, and the company has seen a sharp uptick in share volume to levels not seen since the stock traded above $7 per share in 2007. SMTC shares currently have a price-to-book ratio of 2.49, which is expensive compared to peers in the electronic and electrical equipment sector. However, the stock has a minuscule price-to-sales ratio of 0.27, which is well below the sector average of 2.64, according to Bloomberg.

2 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
ZANE $0.07 0.00%
DEAR $0.02 0.00%
CPE $8.74 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%


DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs