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Dear Red Alert Reader,
We all love a low-priced stock. Wall Street telling us we shouldn't is a lot like our parents telling us candy was bad for us.
Sorry Mom, but we just came across one of the best stocks under $5 right now. And it has the potential to pop 300% in a short time.
Sure, a move from $50 to $100 and $5 to $10 is the same percentage rate of return. But it takes a lot less cash to create the buying pressure needed to move the $5 stock than it does to move the needle for the $50 stock.
Plus, buying low-priced stocks could have an extraordinarily positive twist. That is, if you focus on fast-growing companies with sound fundamentals.
We sat down and searched the world for companies that are growing sales and cash flows by at least 20%. We also wanted to see them reinvesting that cash so the company's net worth increases at a high rate. Finally, we limited the search to just those whose stock prices were less than $5.
Today, we found three of these powerful low-priced growth stocks trading in the United States.
Quick 10% on This Low-Priced Stock
China Customer Relations Centers (CCRC) is a Chinese company that offers Chinese companies business support services. This support includes things like customer service, marketing surveys, technical support, sales, and research.
The company has been growing at a very high rate for years. Sales and cash flows have increased by more than 430% annually for the past five years. The cash has been successfully reinvested in the business as China Customer relations has seen its net worth rise by more than 40% annually.
There is a unique win-win arbitrage situation developing in this stock. The founder and chair of the company, along with other board members, have made an offer to buy the company at $5.37 a share.
If the offer is accepted, there is a quick profit of about 10%. If the deal falls through, investors own a high-growth company for less than seven times earnings.
This next stock under $5 has the chance to double in the coming year...
A Money-Doubling Stock Under $5
Central Puerto S.A. (CEPU) is an electric utility in Argentina. It is a renewable energy company with five thermal generation plants, one hydroelectric generation plant, and two wind farms.
We also know that Argentina still uses electricity and is looking to move toward renewable energy even with their difficulties.
The slightest improvement in the Argentinian political or economic situation could bring institutions from all over the world into this stock, sending these shares soaring in price.
Take a look at what has happened in the developed world of renewable energy stocks. This should give you an idea of how easy it would be for this low-priced stock to double or more.
Central Puerto has been growing revenue, profits, and net worth by more than 90% a year for the past five years. The stock price does not reflect that currently.
When it does, the stock could explode higher. But for even more upside, you don't want to miss this next low-priced stock with 300% potential...
Best Stock Under $5 Now
GTT Communications Inc. provides cloud networking services to multinational enterprises, carriers, and government customers in the United States, Europe, and internationally. That's a tough business with a lot of competition, and GTT Communications has often struggled to meet Wall Street projections.
Despite the difficulties, it's grown its net worth, sales, and profits at a very high rate.
In October, GTT Communications announced it had reached a deal with I Squared capital to see its pan-European, North American, sub-sea, and trans-Atlantic fiber network and data center infrastructure services for $2.3 billion.
GTT will use the cash to pay down the debt it has taken on over the last decade to make acquisitions.
That is more than half its total debt and almost 10 times its current market capitalization.
Analysts expect the high growth rate to continue with 25% average annual earnings growth over the next five years.
If GTT Communications comes anywhere close to that pace, this stock could easily climb to 300% or more of the current stock price.
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