This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Under $10 That Probably Won't Double in 2012

Stocks in this article: IMM NOK F SIRI S

Right when you think a stock like RIMM or NOK cannot go lower, it does. In both cases, investors -- for good reason -- have absolutely no confidence whatsoever in management. As TheStreet's Richard Saintvilus noted in Research in Motion Should Just Shut Up:

RIM is in no position to diagnose itself, regardless of what its CEO may want people to believe. Numbers don't lie. RIM has done a lot more talking and a lot less executing, and it is time to reverse them. It can start a recovery -- as faint as that may be -- by just shutting up.

It's only slightly different at Nokia, primarily because that company did several things RIM refused to do such as move faster to shake up management, abandon a dead-on-arrival operating system and forge a key strategic partnership. Now, here comes the hard part - executing.

That's what makes claims that any stock in a position similar to the pickles RIMM and NOK find themselves in could double so absurd. Like Saintvilus says, RIM needs to shut up first, come up with a viable plan and then implement it. Why should any investor give the company the benefit of the doubt in this respect?

If you enter a long position in RIMM or, in my case, NOK, approach it with a cautious and humble skepticism. Competitive headwinds and about 3.5 billion outstanding shares (at NOK) should make anybody cautious, humble and speculating in small doses. Don't enter these stocks even half-expecting a double. That's a great way to set yourself up to fail and mismanage a position.

Another stock you've been told by any number of people will double in 2012 is Ford Motor (F). Go into this trade with more than "a cautious and humble skepticism," but with a time horizon measured by geological instruments.

Because Ford returned almost 1,000% between late 2008 and early 2011, the cats who argue it will "double in 2012" think it just has to happen again. And, heck, a mere double is only 1/10 of what the stock is capable of. As if, it's a professional athlete coming off of a fluke season. The 50% haircut F took over the last year-and-a-half - it wasn't a fluke.

There might not be a more certain industry on the planet than the auto sector, especially if you're one of the major players trying to build business in Europe and China, while selling to a domestic customer too scared to spend and too poor to save. If I have to be in the space, give me shares of a luxury dealer who sells to people less concerned with price and the broad economy.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs