11 Stocks Under $4 With Upside: Analysts

NEW YORK (TheStreet) -- Sirius XM Radio (SIRI), Active Power (ACPW) and Gleacher & Co. (GLCH) are among the following 11 stocks with as much as 144% upside, say analysts polled by Bloomberg.

The 11 companies, spanning industries from mining and pharma to technology, have market values of more than $160 million and are trading under $4. Based on analysts' buy and hold ratings, strong company fundamentals and industry outlook, these stocks could present an attractive buying opportunity.

The stocks are stacked based on their upside, from great to greatest.

11. Sirius XM Radio ( SIRI) operates two satellite radio systems offering music, sports, entertainment and news on a subscription basis. Available in vehicles, radios, smartphones and on the Internet, subscribers can chose from a variety of package starting under $20.

Sirius' first-quarter revenue rose 9% to $723.8 million from a year earlier. Net income increased to $78 million from $42 million. At the end of the quarter, the company's cash and cash equivalents stood at $433.7 million, up 62%. New subscriptions totaled 373,000, bringing the total to 20.6 million.

The company reaffirmed its 2011 guidance with revenue estimated at $3 billion and adjusted EBITDA at $715 million. Meanwhile, Sirius raised free cash flow estimates to $350 million from $300 million. With regard to subscribers, the company forecasts a net addition of 1.4 million this year.

Of 13 analysts covering the stock, 46% give it a buy, while 46% rate it hold. On May 8, analysts at Maxim Group assigned a buy rating to the stock and raised its price target to $2.5 from $2.2 a week earlier. This indicates a 6.4% potential upside from current levels.

10. Active Power ( ACPW) makes products that deliver continuous clean power to protect customers from voltage fluctuations.

Revenue in the first quarter was $17.3 million, up 56% from a year earlier. During the quarter, the sale of 31.2 megawatts of critical power systems increased revenue per megawatt to $480,000, vs. $414,000 per megawatt on total sales of 23.6 megawatts. Notably, 64% of the orders received since the beginning of 2011 were from new customers, while existing customers accounted for the balance, 36%. Meanwhile, net loss narrowed to $1.1 million, or 1 cent per share, as compared to $2.6 million, or 4 cents per share, in the year-ago quarter.

Heading into the second quarter of 2011, the company expects revenue in the range of $17 million to $20 million, growing 6% to 25% from the second quarter of 2010. Earnings per share are expected to range between a loss of 1 cent to a gain of 1 cent.

All the three analysts covering the stock recommend a buy. As such, there are no sell ratings on the stock. Analysts polled by Bloomberg forecast an average 12-month price target of $2.9, nearly 22% higher than the stock's current price.

9. Capstone Turbine ( CPST) makes microturbines.

For its latest third-quarter results, the company said revenue increased 51% from a year earlier, while the backlog grew 8%. For Capstone's upcoming fourth quarter, analysts polled by Bloomberg forecast an increase of 57% in revenue to $25.7 million. Meanwhile, the net loss is seen narrowing to $6.25 million, or 3 cents per share, from $12.9 million, or 5 cents a share. Gross margins are expected to swing to a positive 7.9% from a negative 14.7%.

Capstone recently secured an order for 22 C65 microturbines for providing prime power to central processing facilities and metering stations at remote well sites in the Eagle Ford shale in south Texas. The company's local distributor, Pumps & Services, received orders for more than 20 MW over the past 10 months from three major oil and gas companies exploring large shale reserves or plays in the U.S. Thus Capstone microturbines market penetration of is growing indeed.

Of the five analysts covering the stock, 80% recommend it as a buy. Analysts polled by Bloomberg forecast a 12-month price target of $2.8, or 47% higher than the stock's current price.

8. Claude Resources ( CGR) explores for precious metals. The company's mineral properties are located in northern Saskatchewan and northwestern Ontario. The company also owns and administers oil, natural gas liquids and natural gas property interests in Alberta.

For 2010, Claude swung to a net profit of $5.8 million, or 4 cents per share, from a net loss of 6.3 million, or 6 cents, in 2009. Gold revenue from Seabee increased 15% for the same period. In early April, the company's new Santoy 8 gold mine achieved commercial gold production at the Seabee Gold Operation in northeastern Saskatchewan. The company's CEO said the new mine would improve Seabee's production profile and reduce unit cash costs in upcoming quarters, generating higher net earnings and working capital for further growth.

Claude Resources recently completed a $57.5 million equity financing, or $2.50 per share. The company will use the proceeds for the exploration and development of projects and for general corporate purposes.

Of eight analysts covering the stock, 88% recommend it as a buy while the remaining rate it a hold. There are no sell ratings. Data from Bloomberg has analysts predicting an average 12-month price target of $3.17, 48% higher than the stock's recent price.

7. Northgate Minerals ( NXG) is a Canadian producer of gold and copper. The company's assets include the Kemess mine, Fosterville, Stawell and Young-Davidson.

The company reported a record first-quarter 2011 net profit of $19.8 million, or 7 cents per share, as compared to $3.9 million, or 1 cent, a year earlier. Cash flow soared to $40.1 million from $12.1 million. Meanwhile, at the end of the first quarter, the company invested $130 million toward the construction of the Young-Davidson mine.

Going forward, the company reaffirmed its production guidance from its three mines in the range of 195,000 ounces to 205,000 ounces at a cash cost of $805-$845 per ounce. Meanwhile, commissioning of Young-Davidson is scheduled for the fourth quarter of 2011 with production targeted to start by the end of first-quarter 2012. The mine is estimated to produce an average 180,000 ounces of gold annually over an initial 15-year mine life.

Of the eight analysts covering the stock, 75% recommend it as a buy while the remaining rate it as a hold. There are no sell ratings on the stock. As per analysts surveyed by Bloomberg, the average 12-month price target is $4.3, nearly 50.1% higher than the stock's current price.

6. Emcore ( EMKR) operates in the fiber optics and photovoltaics segments, offering a portfolio of compound semiconductor-based products for the broadband, fiber optics, space and solar-power markets.

For its second quarter ended March 31, 2011, the company recorded revenue of $47.2 million, in line with its guidance range between $46 million and $49 million. During the quarter, the company's cable TV and tunable laser business showed significant improvement. At the end of the quarter, order backlog for the fiber optics segment increased sequentially by $2.9 million, or 14%.

Heading into the third quarter of 2011, the company estimates revenue in the range of $48 million to $50 million, ahead of Reuters analysts' average estimate of $48 million. Revenue from the fiber optics segment is seen increasing by 10% in the third quarter. Furthermore, the company said that since March 31, it has seen strong bookings in both photovoltaics and fiber optics.

The company recently entered into a long-term supply agreement with Space Systems/Loral to manufacture and deliver high-efficiency, multi-junction solar cells for Space Systems/Loral's commercial satellite programs. The multi-year contract is the second largest awarded in Emcore's history.

Of the 10 analysts covering the stock, 60% recommend it as a buy while 30% rate it a hold. Data from Bloomberg has analysts reporting an average 12-month price target of $4.0, which is 50.9% higher than the stock's current price.

5. Gleacher & Company ( GLCH) is an investment bank offering advisory services to companies and institutional investors. It also provides capital-raising, sales and trading services.

For first-quarter 2011, the company's revenue was $94.7 million as compared to $79.3 million in the earlier-year quarter, led by fixed-income revenue and revenue related to ClearPoint, a mortgage company it acquired in January 2011. Net income for the quarter stood at $7.2 million, or 6 cents per share, as compared to a net loss of $211,000, or nil per share, in the year-ago quarter.

During the quarter, the company launched its residential mortgage banking initiative through ClearPoint and earned $5.4 million in principal transactions and commissions. Also, $900,000 was recorded in fees and other revenue due to fees earned on mortgage-lending services. Gleacher recorded $2.3 million as bargain purchase gain in the ClearPoint acquisition.

Of the five analysts covering the stock, 40% recommended it as a buy while 40% rate it a hold. The stock's average 12-month price target is $3.2, or 69.3% higher than the current price, analysts polled by Bloomberg say.

4. Great Basin Gold ( GBG) is involved in the acquisition, exploration, development and trial mining of precious metal deposits. The company has two material projects in the trial mining stage -- the Hollister gold project and the Burnstone gold project. It is also conducting early-stage exploration on prospects in Tanzania and Mozambique.

The company recently provided its operational update for the first quarter ended March 31, 2011. Recovery at the Burnstone project amounted to 5,511 gold ounces, with 2,794 ounces sold, to record its first-time revenue of $3.8 million. Meanwhile, cash production cost per tonne for the period is estimated at $70, which is in line with the planned costs during production build-up. The plant has processed almost 200,000 tonnes during the quarter, meeting the target provided by the production build-up plan.

Meanwhile, 21,828 tonnes were extracted through trial mining from the Hollister project during the quarter. In terms of production, the company maintained its fourth-quarter levels by recovering 28,500 gold (Au) equivalent (eqv) ounces (oz), of which only 17,500 Au eqv oz were recognized in revenue, as an additional 11,000 Au eqv oz were delivered but not sold to the refiner by the quarter-end.

The company said that since February 2011, when it introduced clean carbon, its gold recoveries for the quarter exceeded 88%, while silver recoveries rose to 68%. Meanwhile, as of March 31, 2011, the company had $68 million in cash reserves. GBG is scheduled to release its financial results for the first quarter on May 16, 2011.

All six analysts covering the stock recommend it as a buy. There are no sell ratings on the stock. Analysts polled by Bloomberg expect an average 12-month price target of $4.1, or 77.4% higher than the stock's current price.

3. Midway Gold ( MDW), an exploration company, engages in the acquisition, exploration and development of gold and silver mineral properties in North America. It has mineral properties in Nevada and Washington. Its exploratory-stage projects are Spring Valley, Pan and Golden Eagle gold properties, which have identified gold mineralization. The company also owns early-stage gold and silver exploration projects Roberts Creek, Gold Rock and Burnt Canyon.

Midway has announced that total gold identified at its wholly owned Spring Valley project in Nevada has improved from the previous inferred resource estimate in 2009. During the past two years, drilling at Spring Valley has led to the conversion of 2.16 million ounces of gold to the measured (0.93 million ounces) and indicated (1.23 million ounces) categories. In addition, new drilling produced an additional inferred resource of 1.97 million ounces of gold at the same cut-off grade.

Going forward, the company believes that the Spring Valley results are emerging as a world-class gold system, and hold the potential for substantial growth and continued exploration. Drilling in 2011 is expected to focus on expanding the resource and evaluating satellite targets, particularly within the recently acquired land south of the existing resource.

Of the three analysts covering the stock, 67% recommend it as a buy while the remaining rate it a hold. There are no sell ratings on the stock. The stock's average 12-month price target is $3.3, which is 82.3% higher than the current price, as per analysts surveyed by Bloomberg.

2. Columbia Laboratories ( CBRX) develops products that utilize its bioadhesive drug delivery technologies to optimize drug delivery in a controlled and sustained manner. The company is focusing on funding new development projects through proof of concept, then will partner for later-stage clinical development and commercialization.

For the first quarter of 2011, the company reported total net revenue of $12.5 million, increasing 74% from the year-ago quarter, driven by $8.4 million in revenue related to the gain on the completion of its progesterone assets sale to Watson in July 2010. Net loss narrowed to $1.2 million, or 1 cent per share, from $13.2 million, or 20 cents per share, in the year-ago quarter.

Subsequent to the purchase and collaboration agreement with Watson, Columbia is entitled to receive either $6 million or $8 million as a milestone payment, based upon achievement of certain statistical results of the recent Pregnant study. Furthermore, the company plans to make investments to expand its manufacturing capacity to meet Watson's forecasts for the anticipated launch of Prochieve, used to reduce the risk of preterm birth.

The analyst covering the stock recommends a buy rating on it. The stock's average 12-month price target is $7, about 116% higher than the current price, as per analysts surveyed by Bloomberg.

1. SuperGen ( SUPG), a pharmaceutical company, is engaged in the discovery and development of cancer therapies. The company's strategy is to acquire clinical products developed by other companies, execute selective developmental effort on them, and commercialize the products so that they are available in the market.

For the first quarter of 2011, the company reported net income of $5.5 million, or 9 cents per share, as compared to $4.7 million, or 8 cents per share, in the year-ago quarter. Meanwhile, revenue for the quarter increased to $17.1 million from $14.1 million in the year-ago period. At the end of March 31, 2011, the company recorded unrestricted cash, cash equivalents, and current and non-current marketable securities of $129.5 million, compared to $120.4 million as of Dec. 31, 2010.

SuperGen believes that its recent acquisition of Astex Therapeutics will help generate significant shareholder value through the creation of a powerful new entity capable of delivering next-generation cancer therapies to address critical unmet medical needs. For 2011, it estimates royalty revenue for Dacogen to increase by 5% from the prior year to a range of $52 million to $55 million. Net income for the year is seen below $12 million.

The three analysts covering the stock recommend it as a buy, so there are no sell ratings on the stock. Analysts polled by Bloomberg forecast an average 12-month price target of $6.5, nearly 144.4% higher than the stock's current price.

>>To see these stocks in action, visit the 11 Stocks Under $4 With Upside portfolio on Stockpickr.

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