8 Consumer Goods Buys Under $5

NEW YORK (TheStreet) -- We have identified eight stocks from the consumer goods sector that are trading under $5. These stocks which have market capitalization of under $300 million have a potential upside in the range of approximately 40% to 300% in the upcoming 12 months, based on analysts' estimates, polled by Bloomberg. Notably, none of these stocks have sell ratings.

The stocks are stacked in terms of upsides, great to greatest.

8. Glu Mobile ( GLUU) is engaged in designing, marketing and selling games for mobile phones. These games are designed to appeal to a cross-section of subscribers and are served by its wireless carriers and other distributors. It also serves users of smartphones who purchase these games through direct-to-consumer digital storefronts. The company's game titles include Call of Duty, Deer Hunter, Diner Dash, Guitar Hero 5, Family Feud, Family Guy, The Price Is Right, Transformers and Who Wants to Be a Millionaire?, among others.

Net revenue for the first quarter of 2011 declined 5% to $16.4 million from $17.3 million in the year-ago quarter, due to a $4.6 million decline in feature phone revenue, partially offset by a $3.8 million increase in smartphone revenue. Smartphone revenue increased due to sales growth on Apple's iOS-based devices related primarily to revenue from micro-transactions, offers and advertisements.

During the quarter, new titles coupled with persistent success of fourth quarter 2010 drove 20 million new installs. In toto, there have been 70.2 million installs across iOS and Android devices and social networking websites.

The company recently updated its second quarter 2011 guidance. Non-GAAP revenue is expected to be between $16 million and $17 million, up from the previous range of $15 million to $16.5 million. Non-GAAP net loss is expected to be between $1.9 million and $2.7 million, or 4 to 5 cents per basic share compared to a previous guided range of $1.9 million to $3.1 million or 4 to 6 cents per share.

All of the four analysts covering the stock recommend buying it. There are no sell ratings on the stock. On average, analysts estimate 39.5% upside to $6.25 in value from current levels.

7. Jamba ( JMBA), operating through its wholly owned subsidiary, Jamba Juice Company, owns and franchises Jamba Juice stores. Jamba Juice is a restaurant retailer of food and beverage offerings, including fruit smoothies, juices, teas, hot oatmeal made with organic steel cut oats, wraps, salads, sandwiches, and a variety of baked goods and snacks.

Non-GAAP revenue increased marginally to $60.9 million from $60.6 million in the prior year. Company-owned comparable store sales increased 2.2% from the prior year period. System-wide comparable store sales improved 3.1%, while comparable store sales at franchised locations were up 4.1%. Non-GAAP net loss stood at $5.4 million, or 11 cents a share, vs. $6.4 million, or 13 cents a share, in the first quarter of 2010.

The company recently announced the opening of its fifth Jamba Juice location in Seocho, a residential and commercial district in Seoul, South Korea. Prior to this, early May, the company signed a master development agreement with Canada Juice to develop 80 stores across Canada over the next 10 years. The first Jamba Juice Canadian locations are likely to open in late 2011.

As part of its summer promotion, the company launched its "What Would You Blend?" consumer engagement campaign for its smoothie product line on the social networking website Facebook. Going forward, the company expects to deliver company-owned comparable store sales of 2% to 4% and realize adjusted operating profit margin of 18% to 20% during 2011. Jamba plans to develop 50 to 70 U.S. locations in traditional, nontraditional, and express franchise formats.

Of the eight analysts covering the stock, 63% recommend a buy and 25% rate a hold. On average, analysts estimate 39.7% upside to $3.02 in value from current levels.

6. Inventure Foods ( SNAK) is a marketer and manufacturer of healthy, all-natural and indulgent specialty snack food brands. The company operates in three segments: manufactured snack products, berry products and distributed products.

Net revenue earned during the first quarter of 2011 increased 16.7% to $36.6 million vs. $31.4 million in the year-ago quarter. The key drivers for this increase are a 44.7% boost for Boulder Canyon foods because of category growth, new distribution, success of new items and investment in marketing and people to support the brand, and a 17.6% increase for T.G.I. Friday's brand.

Gross profit increased 15.8% year-over-year to $7.9 million, while operating income grew 5.9% to $2.4 million from $2.3 million in the prior year's quarter. Net income was $1.4 million, or 8 cents a share, compared to $1.2 million, or 7 cents a share, in the first quarter of 2010.

All the five analysts covering the stock rate a buy. There are no sell ratings on the stock. On average, analysts estimate 40.3% upside to $5.50 in value from current levels.

5. Stanley Furniture ( STLY) designs, manufactures and imports residential wood furniture. The company offers two product lines: adult furniture product line marketed as Stanley Furniture, and infant and youth furniture as Young America.

Revenue for the first quarter of 2011 decreased 4% to $26.6 million from $27.7 million in the fourth quarter of the prior year. Order backlog grew $2.2 million as the company completed the first full quarter with its new operational strategy announced in May of last year. Lastly, net loss for the quarter narrowed to $3.9 million, or 27 cents a share, from $8.3 million, or 73 cents a share, in the fourth quarter of 2010.

Cash on hand at quarter-end was $22.3 million down from $25.5 million at the end of December 2010. Working capital, excluding cash, decreased slightly to $26.5 million from $27.2 million at year-end 2010. Lastly, current ratio stood at 3.79 compared to 3.75 at the end of the prior quarter.

Of the three analysts covering the stock, 67% recommend a buy and the rest rate a hold. There are no sell ratings on the stock. On average, analysts estimate 51.4% upside to $6.89 in value from current levels.

4. Majesco Entertainment ( COOL) develops video game products for the family-oriented, mass-market consumer. The company publishes video games for interactive entertainment hardware platforms including Nintendo's DS, DSi and Wii, Sony's PlayStation 3, and PlayStation Portable (PSP) and Microsoft's Xbox 360. It also publishes games for numerous digital platforms such as iPhone, iPad, and iPod Touch, as well as online platforms.

Net revenue for the second quarter of 2011 surged to $32.1 million from $10.9 million in the year-ago quarter, driven by Zumba Fitness released in the first quarter of 2011 on three platforms, the Nintendo Wii, Kinect for the Xbox 360, and Sony's Move for the Playstation. Zumba Fitness has now sold over 2 million copies worldwide.

With the success of Zumba Fitness, the company swung to a net income of $2.1 million, or 5 cents a share. This compares to a loss of $1.6 million, or 4 cents per share, in the year-ago quarter. At the end of April 2011, cash and cash equivalents more than doubled to $18.5 million from $8 million at the end of October 2010. Operating cash flows stood at $14.7 million from $4.6 million.

Going forward, the company expects fiscal 2011 revenue to range from $110 million to $120 million, up from the prior range of $100 million to $110 million. Non-GAAP income is forecast at 30 to 35 cents per share, up from 20 to 25 cents per share.

Of the three analysts covering the stock, 67% recommend a buy and the remaining rate a hold. There are no sell ratings on the stock. On average, analysts estimate 68.5% upside to $4.50 in value from current levels.

3. Sorl Auto Parts ( SORL) develops, manufactures and distributes automotive air brake systems, air controlling systems and other related components to automotive original equipment manufacturers and related aftermarkets in China and internationally.

Consolidated revenue for the first quarter of 2011 increased 34.6% to $52 million from $38.6 million in the year-earlier period. This increase results from improved foreign customer base and the continued growth in China's auto market. Subsequently, net income surged to $5.4 million, or 25 cents a share. This compares to $4 million, or 19 cents a share, in the first quarter of 2010.

At the end of the March 2011 quarter, cash and cash equivalents were reported at $12.2 million, almost double from $6.7 million at the end of December 2010. Cash generated from operating activities stood at $8.3 million, up 598.6% from $1.2 million in the year-ago period. Lastly, current ratio improved slightly to 3.04 from 3.02 at the end of the prior quarter.

For the second quarter of 2011, the company projects net sales at $65 million and net income at $6.1 million.

Of the seven analysts covering the stock, 71% recommend a buy, while the others advise a hold. There are no sell ratings on the stock. On average, analysts estimate 168.2% upside to $10.84 in value from current levels.

2. Origin Agritech ( SEED) is a China-based crop seed company specializing in research and development, production, and sales and marketing of corn, rice, cotton and canola seed. The company's product line also includes branded agriculture chemicals.

For the three months ended March 31, the company received $45.92 million as advances from customers, compared to $39.61 million in the year-ago quarter. In early May, the company signed a licensing agreement with a multinational partner to develop high-yield corn varieties incorporating the Origin Agritech glyphosate-resistant and Bt-traits.

The company recently reaffirmed its revenue guidance for fiscal year 2011 and estimates revenue to range from 600 million to 650 million renminbi. Recently, SEED formed a joint venture with a prominent local, state-owned partner in Xinjiang for seed production and distribution. SEED estimates to invest almost $15 million for a 51% ownership stake in the joint venture to build an additional state-of-the-art center to produce, process, package and sell high quality seed products for the China market.

Of the three analysts covering the stock, 67% recommend a buy and the remaining rate a hold. There are no sell ratings on the stock. On average, analysts estimate 193.3% upside to $11 in value from current levels.

1. China Marine Food Group ( CMFO), engages in the processing, distribution and sale of processed seafood-based snack foods, as well as the sale of fresh and frozen marine catch. The company conducts its primary business operations through its wholly owned unit Ocean Technology and four other subsidiaries.

Total revenue for the first quarter of 2011 was reported at $26.7 million, increasing 35.7% from the year-ago quarter. Net income generated during the quarter grew 43.1% to $5.6 million, or 19 cents per share. This compares to $3.9 million, or 16 cents per share, in year-ago quarter. Gross margins for the quarter expanded 250 basis points to 36.1%. At the end of March, the company had $35.2 million in cash vs. $15.6 million at the end of December 2010.

The company reaffirms its revenue for fiscal 2011 at more than $150 million, up 22.3% from the previous year. Meanwhile, CMFO forecasts consolidated adjusted net income at $27.3 million, surging 16.1% year-over-year, and adjusted earnings per share rising 14.8% to 93 cents. Additionally, the company plans to invest 6% to 7% of sales to promote its Mingxiang snack foods and expand distribution for its Hi-Power beverages.

Both the analysts covering the stock, recommend a buy. There are no sell ratings on the stock. On average, analysts estimate 298.4% upside to $10 in value from current levels.

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