13 Stocks Under $5 with Positive EBITDA and Insider Buying

Article written by Tom Henderson, Analyst JBH Capital.

Below, find a list of 14 stocks below $5, that have low price to book ratios, insider buying, and decent debt-to-EBITDA coverage. For the reader, this list could be a good starting point for further study as low priced stocks tend to be very risky and need to be examined closely before purchase. These stocks also have debt, that is why I also included the Debt / EBITDA coverage ratio. I used Yahoo Finance for this activity.

Disclosures: I do not have positions in any of these stocks nor does the firm I work for.

Symbol	Price	Price / Book	Market Cap	Revs	P/S	EBITDA (TTM)	P / EBITDA	Debt / EBITDA
			($ Million)	($ Million)		($ Million)
SSP	2.34	0.2	126	951	0.13	49	2.57	1.49
MOD	5.22	0.4	171	1,790	0.10	97	1.76	2.69
DYN	1.9	0.4	1,600	3,910	0.41	1,470	1.09	4.19
GMET	1.2	0.4	47	63	0.75	46	1.02	2.65
PLAB	3.16	0.4	133	407	0.33	89	1.49	2.47
AHII	1.62	0.4	39	683	0.06	24	1.63	5.38
THMD	4.06	0.4	55	469	0.12	48	1.15	4.90
HERO	4.39	0.4	386	1,120	0.34	393	0.98	2.62
HTRN	1.5	0.5	57	176	0.32	74	0.77	0.57
SUMR	2.13	0.5	33	139	0.24	12	2.75	3.50
CBR	3.25	0.5	223	1,160	0.19	64	3.48	2.14
JTX	3.74	0.5	108	277	0.39	92	1.17	3.87
MNTG	1.79	0.5	49	468	0.10	74	0.66	5.07

Comments

[Zen Investor]

Yahoo Finance is crap. I would never use it's number to evaluate stocks! Yahoo Finance just not reliable. Hence these ratios are OFF!

2009 May 28 04:10 PM

[The Inflection Point]

Thanks for the comment. Always good to double check the statistics with the filings. EDGAR is great for that. I have used Yahoo Finance and it is a good place to begin a search. For in-depth analysis, moving along to the Ks and Qs is best.

Have a pleasant evening.

Tom

2009 May 28 05:10 PM

[The Inflection Point]

Freya,

Thanks for the comment. Will make a note to look at GAP.

Have good night.

Tom

2009 May 28 06:57 PM

[PeteK]

With oil now near $66.00 as of this morning.
DYN is certainly my bet for today.
Remember GMXR ? same story while it was beaten down to around $6.00, look at it now !!!

2009 May 29 06:06 AM

[Ellito]

Oil may hit $70.00 in no time.
GMET, very attractive indeed.
at $1.48 per share now, dirt cheap !!

2009 Jun 04 07:31 PM

[velvet]

what's the opinion about XTEX at $ 4.10, high volume trading?

2009 Jun 07 08:36 AM

[velvet]

with a PE of 1.78??

2009 Jun 07 08:38 AM

[The Inflection Point]

Some of these really turned into winners. It shows, combine value with patience followed by a sharp upturn in the markets and you can get some large winners.

Tom Henderson, Strategist JBH Capital.

Feb 02 10:14 AM