Deal Or No Deal: Tracking The Performance Of Six Stocks Under 5 Dollars

James Dennin, Kapitall: It's been one month since we published this list of stocks under 5 dollars. Let's see how they're doing.

About a month ago we published a list of stocks that were both trading below their Graham Number and had stock prices below $5. We decided to see how these stocks have performed in the past month. 

Click on the chart below to view monthly returns over time from last month's list. 

If you're not familiar with this screen, the Graham Number is a measurement of the so-called "intrinsic value" of a stock. And while it's a rough approximation, it is still built using Graham's favorite parameters: book value per share (BVPS), earnings per share (EPS), and the price to equity ratio (P/E).

To calculate a stock's Graham number we use the following formula:

Graham Number = Square Root of [ (22.5) x (Earnings Per Share) x (Book Value Per Share) ].

It's important to remember however that the Graham Number is still an estimate. Book value per share looks at a company's revenue, debt, and costs to determine something close to a "fair value," but you should never invest in a stock based on this number alone.

The biggest gainer in the group was the semiconductor company Amkor Technology, Inc. (AMKR). The company has been on an impressive run in the past month, yielding a 26% return. At that rate it outpaced both the S&P 500, as well as the rest of its sector handily. But investors looking for a deal should note that Amkor is the only stock on our list that has risen above the $5 mark. 

Also beating the S&P by a noticeable margin in our screen was Warren Resources (WRES) which reported robust earnings for the third quarter. Oil and gas production rose 12% and cash flow from its operations rose 26%. The company is up 9% for the month. 

Other gains and losses in this list were modest for the month, so overall the list seems to have performed pretty well. Check back next month for another update. 

Do you see any investing opportunities on our list of stocks under $5 after a month has passed? Use the list below to begin your own analysis. 

1. Amkor Technology, Inc. ( AMKR ):Provides outsourced semiconductor packaging and test services in the United States and internationally. Market cap at $1.22B, most recent closing price at $5.65.

 

 

2. Alliance One International, Inc. ( AOI):Engages in purchasing, processing, storing, and selling leaf tobacco to cigarette manufacturers and other consumer tobacco products worldwide. Market cap at $267.96M, most recent closing price at $3.06.
 

 

3. Full House Resorts Inc. ( FLL):Develops, manages, invests in, and owns gaming-related enterprises. Market cap at $51M, most recent closing price at $2.72.
 

 

4. Skilled Healthcare Group, Inc. ( SKH):Operates skilled nursing facilities, assisted living facilities, hospices, home health providers, and a rehabilitation therapy business. Market cap at $179.25M, most recent closing price at $4.78.
 

 

5.TeleCommunication Systems Inc. ( TSYS):Develops and applies secure mobile communication technology in the United States and internationally. Market cap at $137.97M, most recent closing price at $2.36.
 

 

6.Warren Resources Inc. ( WRES):Engages in the exploration, development, and production of onshore crude oil and gas reserves in the United States. Market cap at $223.79M, most recent closing price at $3.09.

 

 

( List compiled by James Dennin, a Kapitall Writer. Monthly returns sourced from Zacks Investment Research, all other data sourced from Finviz.)

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