5 best stocks under $5 right now

Stocks trading for less than a fiver have more room to grow than the giants, and the right ones can grow faster, too. Here are five to look at now, with names you might already know.

By Michael Brush

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VIDEO ON MSN MONEY

66Comments
Apr 3, 2011 1:58PM
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Someone here saying never buy stocks under $5??

I bought Ford at $3...it's now at $15

I bought Hertz at $3....now $16

I bought Las Vegas Sands at $4...went to $52, now stabilzed at roughly $45

I could name close to a dozen other Under-$5 stocks I bought.

Of course, I bought the majority in Dec '08 when market was low, about 3-4 months before it bottomed out.  
Mar 27, 2011 3:42AM
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Way back I followed a similar advice on MSN and ended up losing quite a bit of money. The fact is that these articles are written by novice investors. 
Take first example - PacSun. It has negative growth, negative margins, negative EPS, no free cash flow etc. That means it has sunk to the bottom and has little chance to be revived. 
The situation is so bad that the stock is trading at barely its Book Value and sales - which means people are not willing to invest into the company at all. Even the next year's estimated earnings are negative! 
In short - the sun is not shining for Pacific Sun. 
My serious advice to readers is to ignore such articles or risk losing your hard earned money - like I did once. 
However, MSN money central is a great place for you to collect all information you need to make good investment decisions. Educate yourself a little - read about price ratios, multiples, margins, earnings estimates, income and cash flow statements, yields and market/macro-economic situation. A few months worth of hard work can help you learn how to generate cash-flow you are seeking while avoiding risks posed by worthless securities like PacSun
Happy investing friends.
Mar 28, 2011 3:18PM
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WHERE CAN YOU INVEST A SMALL MONTHY AMOUNT ($110.00) WITHOUT LOSING IT TO FEES?
Mar 28, 2011 12:56PM
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About Verisante Tech.   I know I should probably post somewhere else, but I am going to try and post  here.  I work in the health care field and I hear my doctors raving about this new product thats going out . So I took half of my savings and bought stock.  I already doubled my investment.  should I sell my stock and pay high taxes or should I hold it for a 1 year hopefuly it keeps going up and then sell.  I am new to this.  (i am only 19 years old)..  What do you think?   

Mar 28, 2011 11:21AM
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What a bunch of sh*t. All the stocks recommended are non dividend payers for starters. Street.com has all but Sirius and Crown as SELL SELL SELL. Research surely shows different. Long time, good paying stocks are hard enough to keep in a portfolio now, not alone sub standard stocks like these. Give some better advice to readers. Just a good ole country boy here that only had a high school education. Want to compare portfolios? Mine is up 55% and through my own research only! Again, BEST advice is to follow your OWN instincts. Mine is to FORGET ABOUT THESE!!! BTopBob is correct! IT IS NOTHING BUT A PUMP AND DUMP SCHEME! Sirius and the others must be advertising giants for MSN! Michael Brush just made himself sound like an idiot!
Mar 28, 2011 9:26AM
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The author is a tool and assumes that because a stock is cheap it can only go up.  It can also go to zero and you lose all of your money.  These companies have horrific #s and will probably not last.

 

PSUN : Return On Equity -37%     Return On Assets -22%    Return  On Capital-22% .Those are negative #s!!!

 

I didn't even waste time researching the other losers. If PSUN was his top pick!  publishing and recommending this crap should be illegal.

 

 

 

 

Mar 28, 2011 1:08PM
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Classic 'pump n dump'.  Watch these stocks over the next 4 weeks, they will pop a bit because of this article, then slide down 50%.
Mar 28, 2011 5:59AM
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OMG - Do NOT follow this person advise unless you really got money to throw away. That is why he writes these articles. If he was smart he would be an investment banker. STAY AWAY FROM THE LIGHT!
Mar 28, 2011 2:17PM
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Well Apparently you guys know nothing, MSN does these articles quite often and I have never had a loss. Not saying to buy all the stocks but at least 2 of them will bounce back.  Back in 09 They recommended CNU bought at $2.60 and sold a year and half later for double $5.25, they also recommended GIB, which was around $8 and it went quickly to $11 now trades at $20.  Just because you guys have no patience and don't know how to do research doesn't mean you should knock the article.  
Apr 20, 2011 5:27PM
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Embarrassedsome one tell me where I can buy stocks with out a broker? Of course some of you will have to chop me up for asking.....that's okayWink

Mar 28, 2011 11:30AM
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I don't believe in sirius/xm, based on my experience. Got 3 months free with a new GM. After 3 months, they started calling, EVERY night, lowering the price each time until it was 1/2 price. I kept saying no, begged them to stop calling every night. They left the service turned on for two more months. They stopped calling, then sent a bill for $27. Eventually, they turned it over  to a collection agency - potentially screwing my credit score. If this is how they do business and try to inflate their subscriber numbers, I don't have much faith in them.
Mar 28, 2011 11:58AM
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I agree with eric, Sirius/XM had a window of opportunity and will go by the wayside. They are predatory in their unfriendly customer service and they are too expensive by far. The worst is that when your 2-year contract runs out you evidently cannot just stop paying the bill and let them go away. They FORCE an automatic renewal contract on you and explain that you signed a contract agreeing to their method. I bought into their program when buying a new car. While you do sign a document, who knew you were signing on for life? More difficult than most companies, customer service like many others is often off-shore so you will have to bone up on your Hindi-bonics.
Mar 28, 2011 9:48AM
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I bought a few thousands of shares of Sirius back in 09 at 15 cents a share so I am not complaining.
Mar 28, 2011 12:20PM
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For anyone who is interested,  I am following a penny stock GNBT (Generex BioTech corp) That looks like it is starting to take off....Currently selling at .30 Cents a share....These things are big Gambles but if it pops you can really make a lot of money just a couple of 1000 shares.

 

It is worth checking out.  

Mar 28, 2011 2:14PM
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One thing I've learned in the stock market...Never jump into a flooded river unless you know what you are doing....Could get washed downstream....
Mar 28, 2011 6:38AM
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I don't like the advice in this article. There is a reason why these ones have crashed and burned before, and that should be a sign to stay away from these as serious stock considerations for investment purposes. PacSun is a trend for the times, Sirius will always be in competition with a free market, Media channels are not hot anymore, and TranSwitch is dependent upon a lot of research and development, and the Cowen Group has a lot of companies based upon R&D. I'm not saying these won't go up in price and possibly make people tons of money right now, but it isn't smart trying to ride the waves of these companies. Unless you like surfing.  
Mar 28, 2011 9:04AM
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I'd like a list of names with contact addresses of everyone who listens to advice from these people and buys stock they are pushing. On that list put a check mark next to each one who made money. Then erase each one who does not have a check mark. What would I have left? A blank piece of paper to recycle and print something useful on. Good grief are there still idiots believing what you fool say?

 

   Henry

Mar 28, 2011 9:40AM
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Since when is MSN getting involved in pump-and-dump schemes?  This needs to stop.
Mar 28, 2011 1:55PM
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             Recommend that you sell half of any thing that doubles in value.
Mar 28, 2011 12:50PM
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MSN's financial article's have become more and more stupid. This article is just a recent example. Usually, they parrot the National Association of Realtors lies, then select some story written by an even less informed writer, usually published in some no name blog and run with it as if it were true. Hopefully, no one makes a financial decision based upon MSN's idea of information.
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