NEW YORK (TheStreet) - I define stocks that qualify as stocking stuffers as those with a buy rating according to www.ValuEngine.com, 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) - Get Report and Alaska Communications (ALSK) - Get Report 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) - Get Report($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.
Advanced Micro Devices ($3.69) provides a diverse portfolio of integrated circuits and semiconductors. The stock has a buy rating is 32.2% undervalued with a gain of 53.8% over the last 12 months and is above its 200-day SMA at $3.54. This stock traded as high as $4.65 on July 18 and as low as $3.04 on Oct. 23. I show quarterly and weekly pivots at $3.62 and $3.72 with a monthly risky level at $4.64.
NetSol Tech (NTWK) - Get Report($4.91) provides software and IT services to the financial services industry. The stock has a buy rating is 30.6% undervalued and is down 16.5% over the last 12 months and is well below its 200-day SMA at $9.55. This stock was as high as $14.01 on April 2 and as low as $4.25 on Dec. 12. My semiannual value level is $4.46 with a monthly pivot at $4.85 and semiannual risky level at $6.57.
Oncolytics Biotech (ONCY) - Get Report($1.67) focuses on the development of pharmaceuticals to treat cancers that are deemed caused by genetic defects. The stock has a buy rating is 46.6% undervalued and is down 52.8% over the last 12 months and is well below its 200-day SMA at $2.66. This stock recently declined from $2.70 on Nov. 21 to $1.45 on Dec. 12. My weekly value level is $1.17 with a monthly pivot at $2.00 an annual pivot at $2.24 and quarterly and annual risky levels at $2.87 and $3.54.
PharmAthene (PIP) ($1.80) develops biotherapeutics that addresses treatments for the effects of weapons of bioterrorism. The stock has a buy rating is 20.7% undervalued and is up 51.3% over the last 12 months and is below its 200-day SMA at $1.84. This stock set its 2013 high at $2.42 on August 26 then as low as $1.66 on Wednesday. My quarterly value level is $1.40 with a semiannual pivot at $1.73 and a monthly risky level at $2.02.
Peregrine Pharma (PPHM) ($1.27) developed innovative products that are in clinical trials for the treatment of cancer and hepatitis C virus infection. The stock has a buy rating is 28.4% undervalued and is flat over the last 12 months and is below its 200-day SMA at $1.42. This stock traded as low as $1.11 on June 27. My quarterly value level is $1.11 with weekly and monthly pivots at $1.24 and $1.45 and a semiannual risky level at $2.44.
Sigma Designs (SIGM) ($4.40) makes multimedia products for use with personal computers. The stock has a buy rating is 47.7% undervalued and is down 22.7% over the last 12 months and is below its 200-day SMA at $5.15. This stock traded down from $6.70 on Sept. 13 to $4.04 on Thursday. My quarterly value level is $3.36 with weekly and monthly pivots at $4.81 and $5.48 and a semiannual risky level at $8.53.
Sequenom (SQNM) ($2.22) is involved with industrial genomics which uses the knowledge of DNA variations for improving health, agriculture and livestock. The stock has a buy rating is 62.4% undervalued and is down 54.6% over the last 12 months and is below its 200-day SMA at $3.35. This stock traded down from $4.90 on July 17 to $1.65 on Nov. 6. My monthly value level is $2.05 with weekly and quarterly pivots at $2.32 and $2.57 and a semiannual risky level at $6.59.
At the time of publication the author held no positions in any of the stocks mentioned.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Richard Suttmeier is the chief market strategist at ValuEngine.com. He has been a professional in the U.S. Capital Markets since 1972, transferring his engineering skills to the trading and investment world.
Suttmeier has an engineering degree from Georgia Tech and a Master of Science degree from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. He became the first long bond trader for Bache in 1978, and formed the Government Bond Department at LF Rothschild in 1981, helping establish that firm as a primary dealer in 1986. This experience gives him the insights to be an expert on monetary policy, which he features in his newsletters, and market commentary.
Suttmeier's industry licenses include, Series 7 and Registered Principal (Series 24). He has been the Chief Market Strategist for ValuEngine.com since 2008 and often appears on financial TV.
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Richard Suttmeier can be reached at RSuttmeier@Gmail.com