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.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Buy the Dip or Sell the Rally | Financial Sense
- The Window For The iBC Investor Conference Is Closing | iBankCoin.com
- High Yield Corporate Algo Gone Wild | iBankCoin.com
- "Warning Signs" & The Fed's Grand Illusion | ZeroHedge
- "Why I Will Not Submit To Medical Martial Law" | ZeroHedge
- What’re You Doing with That Hammer? | iBankCoin.com
- The “New Normal” in EM Ex-China | Financial Sense
The most relevant financial news and articles from the Internets
- US automaker Ford starts luxury Lincoln sales in China | Business Insider
- The Next 'Avengers' Movie Might Demonize Artificial... | Business Insider
- People Are Beginning To Talk... | Business Insider
- Liverpool manager warns Reds to plug leaky defence | Business Insider
- Sam Biddle Is Leaving Valleywag | Business Insider
- This Simple iPhone Trick Is Perfect For Reading In The Dark | Business Insider
- Stock Market Today: Earnings, Leading Indicators Signal Strength in U.S. Economy | TheStreet.com