Two Top Rated Under $10 Stocks for Traders
Many traders would rather buy round lots of low-priced stocks than a few shares here and a few shares there of higher-priced stocks. To this end, TradingMarkets.com provides a list of not just the top PowerRatings stocks for traders, but also the top PowerRatings stocks for traders that are less than $10 per share.
While fewer of these stocks are optionable compared to many higher-priced shares, the stocks-under-$10 crowd does represent an interesting cross-section of industries and sectors, as well as plenty of opportunities for patient traders.
Both of the stocks I want to introduce today began the trading session with PowerRatings of 8. More importantly, these 8 PowerRatings have held up over the course of the trading day. This means that traders interested in these stocks likely will be able to buy them while the shares are still on sale. Of all the edges we teach traders
— both here in our TradingMarkets commentary as well as through our TradingMarkets Path to Professional Trading course
— buying weakness and selling strength is the most important. It is the only way to consistently buy low and sell high, as investing and trading wizards throughout history have implored investors to do.
(Click here to join us on the Path to Professional Trading.)
Traders can use our Top 10 Low-Priced Stocks list to find these cheap (in dollar terms) stocks. Not only is this directory updated daily, but also the list is updated during the trading day to help traders know whether or not the bargain they spotted after the close of the previous session is still a bargain after trading starts that day.
The stocks? First up is NaviSite
(
NAVI |
Quote |
Chart |
News |
PowerRating) with an 8 PowerRating. NaviSite is a provider of application management and managed hosting software and services. The stock is currently trading between $5-6 after falling precipitously from a December high just north of $9. Although the stock is at year-to-date lows, our research reminds us that stocks hitting significant lows are often more profitably bought than sold.
The other stock I want to highlight is American Dental Partners
(
ADPI |
Quote |
Chart |
News |
PowerRating). Shares of ADPI plummeted as news of a lawsuit against one of the company’s subsidiaries was likely to be decided against the defendant. Judge-ordered mediation was scheduled to begin today in the wake of a jury verdict awarding punitive damages totaling in excess of $42 million. After reaching a high of $28.95 in late October, ADPI was most recently trading at $4.90. The stock has a PowerRating (for Traders) of 8.
David Penn is Senior Editor at TradingMarkets.com