Low Priced Stocks - Are They Worthwhile?
Admit it, you love to find a bargain. Whether it’s a sale at the local store, or a rebate on your new car, getting a good deal is very satisfying. The same is true in the stock market; everyone loves to find that low priced stock that is primed to move. While there are still risks involved, there are low priced stocks available that could be ready to move. It is important to perform extra stock technical analysis when considering a higher risk stock. Be sure to stay within your stock trading plan then considering these low priced stocks. Although we are not recommending the following stocks, we thought we would provide examples of what's available:
Lions Gate Entertainment
The movie industry as a whole is shaking; the DVD business has begun to contract and even the Internet detracts from the free time that might be spent at the cinema. One studio and distributor, Lions Gate Entertainment, stands poised to be profitable low priced stock for investors who are patient. This group is producing successful movies and operating on a tight budget. It also owns the rights to popular television shows and other properties. With new money management ideas and tighter budgets (their movies typically cost less than the salary of a top actor) this low priced stock has the potential to be a stock market mover.
Coeur d’Alene Mines
Due to its high entry and production costs, the metals mining industry is typically an expensive investment option. Since this low priced stock is currently well below $10 per share, it is fairly easy for an investor to purchase a “round lot”, which means 100 shares. This has an additional benefit of helping traders avoid paying extra fees. After the run-up on silver saw the price more than double, Cour d’Alene’s stock price has fallen, making it an excellent stock to pick. As this company continues to benefit from strong demand, limited supply growth and investment interest, its potential as a low priced stock is quite strong.
Landec
This company is the manufacturer of polymers that alter their physical traits, such as adhesion and permeability, changes in temperature occur. The company currently licenses out this material to a wide range of companies for a multitude of uses, but is by far most successful in the food packaging industry, where the ability to control levels of carbon dioxide and oxygen inside of a food package allows for iceless shipping. This reduces freight costs and in turn, is quite beneficial for this low priced stock. Because the potential applications for this product are unlimited, the future looks bright for Landec and it appears ripe for a stock price breakout.
Companies such as these not only offer the prospect of strong gains for successful traders, but their low priced stocks provide a stock market investing education at prices that most new beginner investing students can afford. Since these companies do not have the strength of the blue-chippers, it is paramount to closely follow a stock trading system. The bargains are there and waiting to be picked up, so here’s to opportunity to benefit from these and other low priced stocks.
Market Direction: Candlestick signals illustrate investor sentiment. Long body days, whether bullish or bearish, indicate a decisive sentiment. A Doji or spinning top type day represents indecision. Witnessing a decisive day or an indecisive day in specific stages of a trend conveys completely different messages. Indecisive trading during a sustained trend may represent that the investor sentiment has not changed during that trend. As seen in the market indexes, both the Dow and the NASDAQ have been in the overbought conditions for a few months. Indecisive trading formations during the uptrend indicate that there has not been a change of the current sentiment producing that trend.The trading seen this past week demonstrates that there has not been any reversal of investor sentiment.
Indecisive trading signals being confirmed one way or the other has a completely different evaluation. As seen in the ASPV chart, a series of indecisive signals, such as Hammers, Doji's and Spinning tops, provide the possibility of a change of direction in the trend. Witnessing a series of indecisive signals in oversold condition prepares the candlestick investor to watch for the confirmation that a bottom is in and a new uptrend may be beginning. Having the ability to recognize the set up for a possible reversal in a trend allows an investor to participate in a price move just as it is starting. In this case, the ASPV price moved approximate 20% after a coming out of the indecisive trading period.
ASPV
The same can be recognized after a price trend shows some consolidation after a strong up move. The recent pullback in the NRPH chart ended with a serious of flat trading indecisive candle formations. What should be expected after a series of indecisive signals? A candle formation that would indicate which direction investor sentiment was going to move. Knowing what to expect after the series of indecisive trading signals, an investor can start positioning trades immediately upon seeing which direction investor sentiment is going to move.
NRPH
There is a set of high probability expectations after witnessing candlestick signals. Knowing what forms the signals allows an investor to get into trades at the most opportune times. Use this information to your advantage. It has been proven to work for centuries.
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