Best Stocks to Buy for Around $5: Advanced Semiconductor Engineering (ASX)
Advanced Semiconductor Engineering (ASX) builds and distributes integrated circuits and other electronics. While that’s not as sexy as other chipmakers that play to mobile, it’s still a good business, considering the general demand for microchips in everything from cars to computers to TVs.
The Taiwan-based company is close to many Asian electronics manufacturers. And regardless of whether those manufacturers crank out something as hot as the iPhone from Apple (AAPL), ASX still will have a strong baseline simply because of how many high-tech devices exist in the world.
Moreover, ASX is not a chip designer, just a manufacturer. That means while it doesn’t have the same big margins as the companies who create the next hot chip, it also doesn’t have the same risk to get it right with R&D. Advanced Semiconductor’s diverse business makes it a stable player for the long haul, and not as finicky as companies that rely heavily on laptops an desktops. That stability also is reflected in the form of a 3% dividend yield.
In a post-PC age, there are assuredly sexier tech plays out there. But ASX is up 35% in the last year and about 20% YTD. With a decent dividend, decent revenue and profit growth and momentum for share prices, ASX could be the best stock to buy for around the $5 mark right now.