9 Cheap Stocks to Buy Now for $10 or Less

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9 Cheap Stocks to Buy Now for $10 or Less

Cheap Stocks to Buy Now: Great Lakes Dredge & Dock (GLDD)

GREATLAKES185 9 Cheap Stocks to Buy Now for $10 or LessMarket Cap: $545 million
Industry: Construction & Engineering

Great Lakes Dredge & Dock (GLDD) is a pretty unsexy company. For those unfamiliar with the process, dredging involves underwater excavation. Typically this involves either deepening shipping lanes to facilitate travel, or moving sand in beach replenishment efforts to protect against erosion. Great Lakes serves not just its namesake region, but also the East Coast, West Coast and Gulf of Mexico region.

Now, GLDD has had a rough go since its initial rebound during the 2009 snapback. Great Lakes has had trouble staying above $9 for long, and last year the stock saw trouble as earnings releases kept getting pushed back — culminated at last by a restatement of two quarters of results, and the resignation of the current COO and former CFO Bruce Biemeck as a result.

However, after shares tumbled by about a third to a low under $7, they staged a fairly steady rally back to about $9 across the last year or so. What with increased industrial and manufacturing business in the U.S., shipping lanes are increasingly important and governments are finally seeing a recovery in their tax base to allow dredging projects to take place.

GLDD clearly is a cyclical play, as much of an infrastructure investment as a highway company. But while the 2013 earnings restatement created problems for the stock, that’s soundly in the rear-view mirror, and investors can capitalize on the recovery and pessimistic sentiment by placing a bet on GLDD in 2014.


Article printed from InvestorPlace Media, http://investorplace.com/2014/03/9-cheap-stocks-to-buy-now/.

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