3 cheap stocks to buy now

Priced at $1 to $3, these small-cap picks have the explosive potential of penny stocks -- without the huge risk.

By InvestorPlace Jul 13, 2010 11:16AM

By Louis Navellier, Editor of Blue Chip Growth

Penny stock investing doesn’t have to involve super-risky stocks that can erase your retirement money. Penny stock recommendations also can encapsulate low-priced stocks that are more stable, trading at bargain prices and low valuations.

These bargain investments trade for between $1 and $3 -- very cheap compared with traditional equities. Though they are not trading for a few cents like some penny stock recommendations, these stocks are worth the extra share price because they have added stability.

Here are three pricey penny stock recommendations from this week for investors looking for low-priced picks with the ability to surge but with more stable companies that won’t collapse overnight.

San Antonio independent energy company Abraxas Petroleum Corp (AXAS) is primarily engaged in the production of oil and gas. Abraxas has recently seen tremendous growth, and is up +57.3% since April.  While other larger oil companies have fallen on hard times, Abraxas has continued to improve, and currently holds a stock price of $3.01.  This penny stock has vastly outperformed the broader markets like Dow Jones Industrial average and the S&P, which are down -2.3% and -3.2% on the year, respectively.

Penny stock Axcelis Technologies Inc. (ACLS) designs, manufactures and services the semiconductor chips used by big-name technology companies like IBM, Intel, Texas Instruments and Samsung Electronics.  Based in Boston’s North Shore, this technology company has seen a +22% increase since January, and currently boasts a modest stock price of $1.71.  With the introduction of a new energy implanter in late June, Axcelis has its clients excited for higher productivity and lower costs, which should only improve the stock’s value.

Emmis Communication Corp. (EMMS) is a media company primarily focused on radio broadcasting.  This penny stock owns and operates numerous AM and FM radio stations in major U.S. cities including New York, Chicago and Los Angeles.  Additionally, this media company owns numerous magazines including Texas Monthly, Los Angeles Monthly and Atlanta Monthly, among others. Emmis Communication’s stock has made tremendous strides in the last several months, and is up 94% since April.  While other media companies are struggling in the radio and print industries, Emmis is clearly thriving.

To find out six more penny stock investing picks follow this link.

As of this writing, Louis Navellier did not own a position in any of the stocks named here.

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