Stockpickr: The Top NYSE Stocks Under $5

In 2003, Tim Melvin, the co-author of recent bestseller The Little Book of Value Investing with Christopher Browne from Tweedy Browne, told me about a system he tested for 2002. At the beginning of every month, buy every stock below $3 on the NYSE. Sell at the end of the month and begin again.

"The result," he told me, "was an over 200% return for 2002, the worst year in 30 years in the market."

I was impressed by this and have done various confirming tests since then, including a chapter on stocks below $5 in my book, Trade Like a Hedge Fund.

On Stockpickr, every month (actually, every few days) we are updating the list: All NYSE Stocks that are trading below $5. These stocks are profitable and have analysts with a buy recommendation. ...