Gloomy Stock Market Scenario Offers Three Potential Gems for Less than $10 The current stock market scenario maybe gloomy, but it provides a great opportunity to learn to identify cheap stocks with potential.
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The stock market is in a sell-off scenario, and that gives you an opportunity to learn what efficient stock trading and investing are all about. The current market declines, fueled by declines in the major indices causing investors to sell their stock, have nevertheless brought some stocks into the limelight because they’re trading below $10. Now trading in single digits isn’t the only reason to consider a stock to be a bargain. There are other factors to consider too. Do these stocks offer the right balance of value and growth potential? Motley Fool analyst Dan Caplinger believes there are three stocks at least that do offer value and a promising potential for growth. Here’s the graph from Motley Fool, mentioned in the Nasdaq article, revealing them:
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Let’s check these stocks out and discover what the future holds for them and why they are priced low.
Transocean Offshore oil drilling company Transocean ($RIG) has been the victim of the energy industry struggling as a result of the plunging prices of crude oil. Offshore drilling costs more than land-based drilling. And with oil now costing below $50 per barrel, the high expenses of offshore drilling are hard to justify. That’s the reason Transocean trades in single digits. But crude oil is now moving to the $60 range, and that’s encouraged some of the oil producers go ahead with their offshore plans. As for Transocean, it has made the required steps for improving its business health by streamlining its operations through reduced operating costs and greater efficiency. Now, the rebound in the energy industry could cause it to head to a boom. That’s when Transocean can reveal the progress it has made with the goal of becoming industry leader.
Cameco The uranium market too has been going through some struggles. And this has adversely affected uranium producer Cameco ($CCJ). Uranium spot prices are at an extreme low and, as a result, Cameco is struggling to hold on to its longer term contracts before needing to renegotiate those terms at prices that are lower. There are positive indications of the uranium market www.tradezero.co
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recovering. How Cameco could benefit from that depends on its strategy. Kazakhstan uranium producers have chosen to reduce their production targets in the next few years. Cameco has indicated that at the current uranium prices, available supplies are most valuable when left un-mined. However, there are also the safety concerns regarding nuclear energy that many countries are worried about. Nuclear power can’t be eliminated though, and so Caplinger argues that Cameco would come through, having survived many tough conditions. Its shares have a potential for climbing higher.
Sirius XM Sirius XM ($SIRI) satellite radio service continues to be a relevant service when there is a great demand for such omnipresent and unconventional entertainment solutions. Sirius XM has a variety of programming offered through satellite transmission. People are able to enjoy the programming even where it’s hard to get the cell reception that is required by most of the wireless in-vehicle services. Its popularity is proven by the 32.7 million subscribers it had by the end of 2017. And now it has sent excitement levels high by announcing its new 360L platform. This provides coverage of high-profile sports and on-demand programming. As of now, the service, which is expected be active later in 2018, is available on a single vehicle alone but Sirius is sure to develop the platform further to help users enjoy a broader and richer entertainment experience. www.tradezero.co
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Sirius XM stock has already managed to gain ground, as you can see from the figure above, and with its new technology the entertainment segment will provide more favorable conditions for the company to increase its subscription base and thereby stock value. As you’ve seen from the above examples mentioned by Dan Caplinger, these stocks are recommended not just because their share price is really low. In fact, there are risks involved but they realistically have the opportunity to move up from their singledigit share prices along with the improving prospects for the industries they’re involved in. That’s what you need to remember whenever you see a stock priced attractively low. Make sure your research gives you solid reasons to invest in it.
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