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One important consideration for stocks is the corporate governance policies of the company, such as its board composition and shareholder rights, which have important implications to the company’s performance.

RiskMetrics Group gives ratings for four areas of corporate governance, on risks related to: the board, the audit committee, the compensation committee, and shareholder rights.

We ran a screen on stocks trading under $5 with low debt for those with strong corporate governance, receiving “low risk” ratings from RiskMetrics on at least three of their four corporate governance categories.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

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Do you think these companies are being run well? Use this list as a starting-off point for your own analysis.

List sorted by market cap.

1. Wet Seal Inc. (WTSLA): Apparel Stores Industry. Market cap of $437.64 million. Price at $4.36. Debt to equity ratio at 0. According to RiskMetrics, the company has "low risk" in all corporate governance categories except Compensation Risk, which is "medium risk." The stock is a short squeeze candidate, with a short float at 14.45% (equivalent to 7.85 days of average volume). It's been a rough couple of days for the stock, losing 6.71% over the last week.

2. Mueller Water Products, Inc. (NYSE:MWA): Industrial Equipment & Components Industry. Market cap of $337.63 million. Price at $2.19. Debt to equity ratio at 0. According to RiskMetrics, the company has "low risk" in all corporate governance categories except Compensation Risk, which is "medium risk." This is a risky stock that is significantly more volatile than the overall market (beta = 2.48). The stock is a short squeeze candidate, with a short float at 7.08% (equivalent to 6.36 days of average volume). The stock has performed poorly over the last month, losing 36.18%.

3. ADPT Corp (OTC:ADPT-OLD): Computer Based Systems Industry. Market cap of $336.87 million. Price at $2.80. Debt to equity ratio at 0. According to RiskMetrics, the company has "low risk" in all corporate governance categories except Compensation Risk, which is "medium risk." The stock has lost 1.75% over the last year.

*RiskMetrics ratings sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: 3 Stocks Under $5 With Low Debt and Strong Corporate Governance