2 Stocks for $2
The widely-watched Russell 2000 Index (RUT) broke out of resistance at the $833 level yesterday, March 19th. Today the RUT is trading down -1% at $827. Mastery turns it focus to small-cap stocks around $2 a share to keep on your radar in case this dip gets bought. The winners are are Himax Technologies (HIMX) and FuelCell Energy Inc (FCEL).
Himax Technologies (HIMX) manufactures display driver integrated circuits (IC) for use in televisions, monitors, smartphones, and tablets. Sales of its small and medium-sized drivers, which are used in tablets and smartphones, jumped 26% from last year. So HIMX is adapting well to these markets.
Himax also pays a 6.25% dividend yield. It's a pretty solid long - but expect some resistance at $2. If the company increases its dividend back to 2008 levels, shares could easily double in price.
FuelCell Energy Inc (FCEL) recently broke out of a 5 month consolidation pattern. In their latest quarterly earnings statement, revenue increased by 11%, to $31.3 million, mostly because of the 15% increase in the company's product sales.
However, the company hasn't posted a profit since 1997, and big players like GE are starting to show a footprint in the Fuel Cell Market. So look for a quick swing trade on FCEL, up to $2.25 or so, and place some tight stop orders.
MASTERY Bottom line:
HIMX and FCEL do have risk so don't bet the farm. For under $2 and a small position the risk/reward ratio could be worth it.
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