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!

Consider Buy Rated Stocks Under Five Bucks as Stocking Stuffers


NEW YORK (TheStreet) - I define stocks that qualify as stocking stuffers as those with a buy rating according to, are more than 20% undervalued, have an average daily trading volume of at least 200,000 shares and projected to gain at least 7.5% over the next 12 months. Headlining this screening are Advanced Micro Devices (AMD) and Alaska Communications (ALSK) along with seven others.

I never profile a penny stock as these stocks trade below a buck a share and they do so for a reason.

I consider stocks trading between a buck a share and $3 a share as 'options on survival' if they have a buy rating according to ValuEngine. When you buy the stock within this price range you have the risk that it may become worthless vs. the possibility that the stock price could double, triple or more in price.

When a stock is trading below $5 a share individuals cannot buy that company on margin. Three of the stocks in today's post trade between $3 and $5 so these stocks have a higher cost for that 'option on survival.'

If you buy a stock considered an 'option on survival' consider it a Christmas stocking stuffer and look at it a year from now to see if you made money, but beware that the risk is that the stock has become a lump of coal.

My buy-and-trade profiles are based upon fundamental data that determines ratings and valuations including 12 month trailing earnings per share, 12 month forward estimates of earnings per share and on the yield on the Treasury 30-Year bond. ValuEngine can not anticipate positive or negative company specific events which can affect the performance of low-priced stocks particularly among biotech companies.

Alterna Zentars (AEZS)($1.20) is a biotech company focusing on treatments for prostate issues for men and ovarian issues for women. The stock has a buy rating is 75% undervalued and is down 47.9% over the last 12 months and is below its 200-day simple moving average at $1.53. This stock recently declined from $1.74 on Nov. 15 to 99 cents on Nov. 20. My weekly value level is $1.11 with a month pivot at $1.18 and semiannual and quarterly risky levels at $1.39 and $1.60.

Alaska Communications ($2.17) provides local telephone, wireless and Internet services to subscribers in Alaska. The stock has a buy rating is 39.5% undervalued with a gain of 6.9% over the last 12 months and is just below its 200-day SMA at $2.21. This stock traded as high as $3.90 on August 8 and was above $16 in mid-2007. This week's value level is $1.80 with a monthly risky level at $2.74.

1 of 2

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 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

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