Top three 2009 stocks under $10. Back in December, Frank Curzio, manager of the Stocks Under $10 portfolio, recommended three beaten-down well capitalized names that could pop in 2009. Click on this video to see if Frank still likes these stocks.
First is IMAX ( IMAX). The stock got beaten up in 2008, but the company was expected to finally turn a profit in 2009. Lots of action directors and movie theaters are switching to the IMAX format because it generates three times the revenue. Curzio liked the stock under $3. Winner or Loser? IMAX recently posted weaker-than-expected results, a fourth-quarter loss of $9 million. Reportedly revenue was negatively impacted by the release date of "Harry Potter and the Half-Blood Prince" getting pushed back to July 2009. Management reiterated that the company should become profitable in 2009 with a strong pipeline of 11 titles starting with "The Watchmen." IMAX installed 32 new theaters in the quarter and reported a strong balance sheet: $27 million in cash, $10.5 million under its credit facility and solid operating cash flows. Next is Del Monte Foods ( DLM). Thirty percent of sales come from one company, which is usually a negative. However, this one company is Wal-Mart ( WMT), one of the only retailers posting positive sales numbers. Also, a core business for Del Monte is pet food, a big growth market even in a recession. At the end of 2008, the company had several neutral ratings, but Curzio saw lots of upside potential. He liked the stock under $7.