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The market continues to move up on low volume. Although I think there is a significant correction coming over the summer, there are still bargains to be had if you do your due diligence. Here are four to consider under $8. I looked for stocks that were under the radar, selling at a low P/E, with little insider selling or net insider buying, solid balance sheets and growing earnings and revenues.
Advance America, Cash Advance Centers Inc. (AEA) provides cash advance services in the United States, the United Kingdom, and Canada. The company offers cash advance services, which include cash advances, installment loans, and lines of credit. Its cash advances are small-denomination, short-term, and unsecured advances that are due on the customer's next payday. Is there any industry hated more than payday loan companies? AEA sells at six times this year’s projected earnings, and just over five times next year’s consensus. Priced at 0.5 sales, with little insider selling, and a PEG under 0.4, this is a stock worth considering -- especially given it was once a $16 stock.
APAC Customer Services Inc. (APAC) provides customer care services and solutions. The company offers its services and solutions through multiple communication channels, including telephone, Internet, on-line chat, email, fax, mail correspondence, and automated response generated through technology. APAC is selling at 12 time this year’s earnings and less than 11 times 2012’s consensus. APAC also has insider buying and about 80 cents per share in net cash.
Maiden Holdings, Ltd. (MHLD), through its subsidiaries, provides non-catastrophe inland marine and property coverage reinsurance solutions to the regional and specialty insurers in the United States and Europe. The company offers property, casualty, accident, and health reinsurance products. It's selling at seven times 2011’s earnings and about six times 2012’s consensus. Insiders have bought a net $1 million worth of shares over the last six months, and the company is valued at less than 0.5 times revenues.
Power-One Inc. (PWER) designs, manufactures, and markets power conversion and power management solutions for the renewable energy, communications infrastructure, and other high technology markets. Its products include alternate current (AC)/direct current (DC) power supplies that convert AC into DC voltage used primarily in networking systems, large scale data processors, and industrial equipment. PWER is reasonably priced at 0.75 revenues, eight times this year’s earnings and less than seven times 2012’s projected earnings. Power-One also has had net insider buying over the last six months.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Source: 4 Bargains Under $8