Penny stocks in the semiconductor industry such as Lattice Semiconductor (LSCC), LTX-Credence (LTXC), Tower Semiconductor (TSEM), Mattson Technology (MTSN), Conexant Systems (CNXT) and Axcelis Technologies (ACLS) are just a few names to watch.
I expect robust inventory rebuilding by businesses and revitalized consumer spending (as the unemployment rate improves) to carry us through the balance of this year with continued positive earnings growth from many tech companies — most notably semiconductor stocks.
Semiconductor stocks are some of the prime movers of the tech sector, since they make the components that are crucial to so many electronic devices — from the servers used at Fortune 500 offices to the iPod your teen totes to the mall to electronics components of automobiles and airplanes.
That’s why if you want to get in on the ground floor of the tech sector, you want to get into semiconductor stocks.
And if you want to get in on the ground floor of semiconductor stocks, you’ll want to take a look at these top 11 penny stocks. All of them are trading for around $5 a share and all of them are rated “Buy” or “Strong Buy” in my Portfolio Grader fundamental analysis database.
|
Symbol
|
Company Name | Market Cap (M) | Price (close 5/25) | Total Grade |
| LSCC | Lattice Semiconductor | $544.94 | $4.70 | B |
| LTXC | LTX-Credence Corp. | $440.74 | $3.01 | A |
| TSEM | Tower Semiconductor | $262.63 | $1.32 | A |
| CNXT | Conexant Systems | $230.57 | $2.84 | B |
| ACLS | Axcelis Technologies | $183.33 | $1.76 | B |
| MTSN | Mattson Technology | $194.11 | $3.88 | A |
| VIMC | Vimicro International | $173.48 | $4.70 | A |
| MOSY | MoSys Inc. | $119.03 | $3.76 | B |
| FSII | FSI International Inc. | $84.92 | $2.64 | A |
| PDFS | PDF Solutions Inc. | $128.12 | $4.73 | A |
| AXTI | AXT Inc. | $125.85 | $4.06 | A |
One word of warning, however: I recommend that you use limit orders whenever buying stocks that are this small. I’m not talking about the share price, of course, but rather the average volume and market cap. Just buying a few hundred — or even a few dozen — shares could send prices soaring, so if you’re going to buy any of these penny stocks I advise you set your entry price at 10 cents above the previous day’s close and don’t pay a penny more. You may have to string your purchase out over several days, but it is much better to enter at the right price in these penny stocks. Because of the low valuations, just a few cents difference can mean big profits or losses. So again, always use a limit order and under no circumstances place a market order.
As of this writing, Louis Navellier did not own any of the stocks mentioned here in personal or client portfolios.
About Portfolio Grader: Every Sunday, renowned growth stock advispr Louis Navellier runs a fundamental analysis on the top 5,000 Wall Street companies. Armed with this research, Navellier offers a rating for each company reflected as a simple letter grade, with A being “strong buy” and F being “strong sell.” Portfolio Grader’s stock data is free and open to the public and can be accessed online here.
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All five of these companies have explosive growth potential, rock-bottom valuations and are priced under $10 per share. PLUS, they’re set to double even if the market plunges — get their names here.
