4 Value Packed Stocks Under $7 - Revisited

Includes: JBLU, LSE, RSO, SPIL
by: Anthony Parsons

In articles that I wrote here at the end of last year and at the very beginning of this year, I provided discussion of various stocks. This article will take a look at some great performing stocks that were highlighted in one of those articles. It will specifically look at four stocks that I originally wrote about on December 26, 2012 as far as them being value packed stocks under $7 in share price. The companies I would like to revisit here are JetBlue Airways Corporation (NASDAQ:JBLU), CapLease, Inc. (NYSE:LSE), Resource Capital Corp. (NYSE:RSO), and Siliconware Precision Industries ADR (NASDAQ:SPIL). Originally, to find these stocks, the stock screen I ran in December of 2012 included: stocks that are a component of the NYSE or the NASDAQ, stocks that have market caps that qualify them as a small cap or larger, that have share prices between $1 and $7, that have current fiscal year EPS growth of at least 10%, and on stocks that have a PE ratio of 10 or less and/or a PE ratio of below the industry average over the trailing 12 months.

The following is a chart of these four stocks' performances from December 25, 2012, through the current time [May 6, 2013], comparing them against the performance of the S&P 500 for that same time period.

JBLU Chart
(Click to enlarge)

JBLU data by YCharts

The performance of these stocks combined, in this time period, did way better than the S&P 500. The average return for these stocks, not including dividends, was 18.68% compared to 13.98% for the S&P 500.

JetBlue Airways was a strong performer out of these stocks, up over 20% in this time period. Today, on May 6, 2013, it is up a little over 1%. The company was recently downgraded by Bank of America to neutral from a buy rating. Not everyone agrees though, as this article identifies the company as potentially being undervalued based on it having a PEG ratio of below 1. Its most recent earnings came in below analyst expectations. For it to continue its run long-term, I believe the company needs to increase its earnings and to take market share from some of the larger competitors. It is expected to grow by 26% per year over the next five years, and realization of this goal is key to its financial success in the stock market in my opinion.

CapLease, Inc. was the strongest performer of these companies, as its stock price is up over 26% in this period. Additionally, the company has a current dividend yield of 4.5%. Its next earnings report is due out on May 7, 2013, and analysts are calling for .14 per share in earnings. At the time of the original writing of my article in December, the shares were well below $7 each. They are at $6.94 today, May 6, 2013, and the 52 week high is $7.20. The company recently announced an initial public offering of 6,500,000 shares of company stock. In this article on Forbes recently, the stock was highlighted for having a good dividend yield and insider buying. Continued strong performance for the business and additional insider buys could fuel a continued amazing run for these shares. Strong earnings most definitely would provide a backbone for such a run if those can be achieved.

Resource Capital is up about 13% in this time period on share price alone. The company has a current dividend yield of 12.2% though, so this has been a great performing stock. On April 10, 2013, the company's stock was down 4.3% after announcing a common stock offering. Its next earnings report is set to be released tomorrow, May 7, 2013. Analysts are calling for .17 per share in earnings. If the company can beat analyst expectations and maintain its nice dividend, this mREIT could potentially continue to rise in price nicely for shareholders.

Siliconware Precision Industries currently pays a dividend yield of 2.8%. This is a nice bonus to its 14% return in this time period highlighted. Its fourth quarter 2012 earnings beat analyst estimates by a penny per share. The launching of Samsung's Galaxy 4 could potentially benefit the company. Realization of this benefit, coupled with strong earnings, could propel this stock to new heights. The fact that the company beat earnings estimates in the fourth quarter of 2012 is a strong factor that supports its recent rise in share price.

Thanks for reading this article. Please conduct your own research and due diligence before deciding to invest in any of these stocks.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.