If you are going to look for favorable stocks, which are selling below $10 per share, now is the time to start looking, when the good stocks are depressed. It wouldn't have done you much good to look for low priced stocks a couple years ago since the 'good' stocks were trading much higher. When the market was much higher, the only stocks that were trading below $10 were either the ‘bad’ stocks or what the venture capitalists used to call the 'walking dead'.
The walking dead were the companies that would never go out of business but would never do well, they would just stumble along for many years. Many stocks trade between a dollar and $10 and have been trading in that range for a long time. Things are different now because there are many good quality stocks that were brought down by the overall drop in the market.
All of the following stocks have market caps over $500 million, P/E ratios below 20 and PEG ratios below one:
- Himax Technologies, Inc. (HIMX) makes and sells semiconductors that are used as components of flat panel monitors. The stock sells for about four dollars a share and has a market cap of three quarters of a million dollars. The stock has a PE of 6, and PEG of 0.37.
- Advanced Semiconductor Engineering (ASX) is a provider of semiconductor packaging and testing services. It sells for $4.50 a share and has a market cap of almost $5 billion. The stock has a PE of 12 and a PEG of 0.61.
- UCBH Holdings, Inc. (UCBH) is a bank holding company for United Commercial Bank, selling around $4.50 per share and half a million dollar market cap. The stock has a PE of 5 and a PEG of 0.41.
- Health Management Associates, Inc. (HMA) is an operator of acute care hospitals in suburban and rural communities. The stock sells for less than six and a half dollars a share and has a $1.5 billion market cap. The stock has a PE of 7 and a PEG of 0.65.
- Office Depot, Inc. (ODP) is a retailer of office supplies. The stock is priced at less than seven dollars and has a market cap of 1.8 billion. The stock has a PE of 6 and a PEG of 0.51.
- Sealy Corporation (ZZ), a stock with a great ticker symbol, makes and sells mattresses and other bedding products. The stock sells for less than seven a share and has a market cap of $623 million. The stock has a PE of 10 and a PEG of 0.89.
- Brightpoint, Inc. (CELL), with another great stock ticker symbol, is a distributor of wireless devices, accessories, and services. The stock sells for less than $7 a share and has a market cap of $569 million. They have a PE of 8 and a PEG of 0.60.
- Siliconware Precision Industries (SPIL) is a provider of semiconductor assembly and test services. The stock sells for $7 a share, with a $4.3 billion market cap. The stock has a PE of 8 and a PEG of 0.42.
- Cadence Design Systems, Inc. (CDNS) produces electronic design automation hardware and software. The stock sells for about $7.35 per share with a $1.9 billion market cap. The stock has a PE of 9 and a PEG of 0.75.
- Affymetrix Inc. (AFFX) is makes and markets systems for life sciences genetic analysis. The stock sells for about $7.50 per share and has a market cap of over $521 million. They have a PE of 13 and a PEG of 0.67.
Disclosure: Author does not know any of the above.