5 cheap stocks under $10 even high-rollers might like
From a mathematical perspective, share price doesn’t really matter. Whether a public company has 1 million shares valued at $1,000 or 100 million shares valued at $10 apiece, its total market value is still $1 billion.
Still, investors are often psychologically drawn to “cheaper” stocks. Whether because they prefer to buy round lots or higher quantities of shares, or simply because they fool themselves into thinking it’s easy for a $5 stock to rise 50 cents for a quick 10% gain, there’s no shortage of commentary out there for stocks that trade at single-digit prices.
There are obvious risks here, of course. Many low-priced stocks have fallen hard for good reason. And worse, the SEC warns that cheap stocks are often ripe for scams or manipulation as they can be less liquid and lack the same scrutiny as well-followed blue chips.
Oh yeah, and let’s not forget that “expensive” stocks tend to do just fine. Case in point: Amazon.com AMZN, -0.16% , which was at $500 a share the start of 2016 and has tripled in about three years, obliterating the 50% return for the S&P 500 SPX, -0.26% in the same period.
But if you’re the kind of investor who is convinced cheap stocks are best despite evidence to the contrary, then go to town. Here are five stocks under $10 that seem to have some substance behind them, and may be worth a look if you’re into cheap stocks.
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