For 11/11/11, here are 11 stocks under $11

Numerologists say Nov. 11 is a lucky day. If that's the case, these 11 companies just might do the trick for investors.

By TheStreet Staff Nov 11, 2011 1:30PM

By Frank Byrt, TheStreetTheStreet

 

Numerologists say Friday is a lucky day, given the "11/11/11" date. Superstitious investors who have come to believe that traditional fundamental analysis methods are haywire in the seesawing marketplace may want to consider promising stocks with beaten-down prices of under $11.

 

Small-cap stocks, which typically include those trading for less than $11, are down 5.2% this year, compared with the large-cap bellwether S&P 500 ($INX) 0.6% decline. But the small-cappers show signs of having bottomed, as they are up 9.7% in the past month and 5.4% over 13 weeks, according to Morningstar.

 

To celebrate the number 11, what follows is a synopsis of 11 stocks trading for under $11 that boast trailing 12-month revenue growth of 50% to 100% or projected earnings-per-share growth of at least 15%. Many are smaller companies.

 

If there's a rebound in the economy over the next few months, they stand to benefit even more than they have this year. So count your lucky stars. Or wait till Dec. 12 of next year for "12/12/12," or 12 stocks that trade for less than $12.

 

Post continues below:

 

1. Vonage Holdings (VG) is a provider of broadband-telephone services based on the Voice over Internet Protocol (VoIP) communications standard. Its shares are trading at $2.73, having risen 20% this year, resulting in a market value of $607 million. Vonage has a three-year average annual return of 42%. Image: Stocks circled in newspaper (© Digital Vision/Getty Images)

 

Last week, Vonage reported that third-quarter earnings tripled to $24 million.

 

2. Graphic Packaging (GPK) makes paperboard and integrated paperboard products for beverage and other consumer-products packaging. Its shares are trading at $4.27, up 8.5% this year, resulting in a market value of $1.7 billion.

 

The shares have an average annual return of 37% over the past three years. Two weeks ago, the company reported that third-quarter net income jumped by a third to $33.8 million.

 

3. Interpublic Group (IPG) is one of the world's largest advertising and marketing companies. It owns hundreds of individual agencies worldwide that focus on specific functions such as ad creation, brand strategy, media planning and public relations.

 

Now trading at $9.40, its shares have a market value of $4.3 billion and a projected dividend yield of 2.58%. The shares have lost 11% this year, but have a three-year average annual return of 25%.

 

Interpublic Group recently reported that third-quarter profit rose sharply to $208 million from $42.4 million.

 

4. Parker Drilling (PKD) is a provider of land- and offshore-contract-drilling services, including drilling rigs, rental tools, and labor management to the energy industry. It should benefit from the demand for its services due to the boom in North American oil shale drilling.

 

Parker's shares, now trading at $6.43, are up 37% this year and have a three-year average annual return of 17.4%. The company has a $752 million market value.

 

A week ago, Parker Drilling reported a huge jump in earnings in the third quarter as net income totaled $20.7 million, up from $500,000.

 

5. Dean Foods (DF) is the nation's largest processor and distributor of milk and other dairy products. The company's results can gyrate due to fluctuating commodities costs.

 

Its shares, trading at $9.87, are up 15% this year, resulting in a market value of $1.8 billion. The 10-year average annual return is 7%.

 

6. Lions Gate Entertainment (LGF) is a film studio that makes motion pictures, TV programs, home-entertainment videos and digital content. Among its TV programs are the popular "Mad Men" and "Weeds" series.

 

Its shares are trading at $8.38 and are up 27.5% this year, resulting in a $1.1 billion market value. They have a three-year average annual return of 7.8%.

 

This week, Lions Gate reported a fiscal second-quarter loss of 18 cents per share. At the end of August, hectoring hedge-fund activist Carl Icahn agreed to sell his big position in the company and drop all pending litigation.

 

7. AuRico Gold (AUQ) is a Canadian company that explores and mines for silver and gold, primarily in Mexico, but it has recently made some major acquisitions in North America.

 

Its shares are up 27% this year to $10.42, resulting in a market value of $3 billion. Its three-year average annual return is 37%. As with other gold miners, the company's success is tied to volatile gold prices.

 

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8. Rite Aid (RAD) is the third-largest retail-pharmacy chain in the U.S., with about 4,700 stores. Prescription drugs account for 68% of sales. Long term, it is expected to benefit from increases in prescription sales due to an aging populace.

 

This week, Credit Suisse upgraded its rating on Rite Aid shares to "outperform," with a $1.50 price target. The shares, currently trading for $1.18, are up 30% this year and have a three-year average annual return of 39%. The company has a market value of $1 billion. Over 10 years, its shares have an average annual return of 6.2%.

 

9. NetSpend (NTSP) is a provider of reloadable pre-paid debit cards and other alternative financial services, which allow consumers to spend money without a bank account or credit history so they can use debit cards in lieu of cash.

 

Now trading at $6.33, NetSpend's shares are down 53% this year, but up 35% in the past three months, resulting in a $502 million market value.

 

10. Sirius XM Radio (SIRI) provides a subscription-based digital radio service, in the model of cable TV, whose broadcast signals originate from orbiting satellites.

 

The company faces tough competition from free land-based broadcasters as well as from a wide range of new forms of audio content.

 

Sirius shares are trading at $1.64, and the company has a $6 billion market value. Its stock is up 0.6% this year and has a three-year average annual return of 77%.

 

Next year, Sirius will raise its base subscription rate by 12% to $14.49 a month, which may drive away some subscribers.

 

11. Wendy's (WEN) shares are trading at $5.20, with a market value of $2 billion.

 

Wendy's/Arby's ranks a distant third in the United States quick-service restaurant space, which is led by McDonald's (MCD). It is gradually overhauling its menu and, in September, the company introduced a redesigned version of its 42-year-old flagship hamburger. The result is an 810-calorie sandwich that has been met by only middling reaction from its customers.

 

Wendy's shares are up 15% this year and they have a three-year average annual return of 11%.


2Comments
Nov 12, 2011 5:43PM
avatar
As a former employee of RAD I can tell you that this company never "outperforms" anything. It is poorly managed, overpriced, and not competitive with it's peers. RAD is simply a LOSER. Remember they are 6-BILLION dollars in debt and continue to close stores. They were once named a prime candidate for takeover or bankruptcy  and I believe that's exactly RAD's fate.
Nov 11, 2011 6:02PM
avatar

Next week, we will see what the excuses are for the market to be Down or Up.  Frankly, I have my doubts if any of you have your fingers on the true pulse of the economy. 

 

Considering the current situation of a worldwide financial market, there are too many guessing instead of really knowing.  Hence causing turmoil in the Stock Market.

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