Resolve to Buy These Bargain Stocks for the New Year
As we turn the page on 2010, millions of Americans are making resolutions for the New Year. I’ve got a list of things to accomplish myself, and it’s full of ways to make sure that the next 12 months are very profitable.
One of my top resolutions isn’t to chase some of the biggest winners in 2009. No, instead I have pledged to find the up-and-comers that are trading for a bargain now and are poised to break out in the next several months. After all, the goal on Wall Street is to buy low and sell high — and there are a number of great companies that have been beat down in the last year and are ready to explode in 2010.
You should make a New Year’s resolution to add stocks like this to your portfolio. To get you started, here are five bargain stocks trading for less than $5 right now that could be tremendous winners in 2010.
Bargain Stock #1 – Kopin Corp. (KOPN)
Kopin (KOPN) produces lightweight, power-efficient LCD displays and related transistors. The company isn’t just a consumer electronics company though.
KOPN has shipped more than 20 million displays for a variety of consumer and military applications including digital cameras, thermal weapon sights and night vision systems, and its innovative products boast more than 200 global patents and patents pending.
The numbers say it all — in its most recent quarterly report, KOPN blew away Wall Street by topping earnings expectations by 225%. This stock is a great buy for 2010.
Bargain Stock #2 – Art Technology Group (ARTG)
Art Technology Group (ARTG) develops e-commerce software and related services that help companies tap into online sales and keep operational costs down. But it’s not just the technical aspects that ARTG does well — the company
enables clients to personalize the online buying experience through comparison shopping, gift registries, coupons and other adaptive sales techniques.
As more retailers tap into the power of Internet sales to keep down their overhead and expand market share, Art Technology’s products are in high demand. ARTG has topped expectations in each of the last four quarters, with an average earnings surprise of more than 87%. Things are really looking up for Art Technology right now.
Bargain Stock #3 – Syntroleum (SYNM)
Syntroleum (SYNM) isn’t your typical energy company. While it does offer diesel
and jet fuels, its most promising division involves patented Bio-Synfining technology for converting animal fat and vegetable oil into distillate products such as renewable fuel sources.
This is truly a cutting edge business that is growing in popularity as more companies are going green and looking to reduce carbon emissions. And unlike many green companies that are years away from profitability, SYNM is going strong right now.
In its most recent quarter, the company posted earnings of 17 cents per share when Wall Street was expecting a loss of 3 cents per share. This was an incredible 666% earnings surprise. If the company managed to do this well in the third quarter, imagine how it will perform as energy demand increases and crude oil prices move higher in 2010.
Get my full fundamental analysis of Syntroleum (SYNM) here.
Bargain Stock #4 – Endologix (ELGX)
Endologix (ELGX) develops innovative treatments for vascular diseases such as clogged arteries, focusing on minimally invasive treatments. In this era of skyrocketing heathcare costs, ELGX remedies are highly sought after since they tend to be cheaper and require less recovery time than extensive hospital stays and surgeries. Just one groundbreaking product created by this company is a self-expanding stent that can be inserted into a patient’s aorta to protect the blood vessels and improve circulation.
The company recently has returned to profitability with a 100% earnings surprise in the third quarter, and is really gearing up to benefit from the pending health care reforms in Washington.
Bargain Stock #5 – Smith & Wesson (SWHC)
Smith & Wesson (SWHC) was founded in 1852 and is famous for its revolvers, most notably Dirty Harry’s .44-caliber pistol. Obviously, this is one of the biggest names in the firearm industry. The company makes handguns, police accessories and gun safety products but also sells a wide variety of other items. SWHC products include mountain bikes outfitted for police officers, car alarm systems and even apparel like watches and sunglasses that cash in on the famous Smith & Wesson brand.
The company has really been soaring as handgun sales have soared in anticipation of harsher gun laws that will take some brands off the market. I expect big gains from SWHC in 2010 as well.