As I write this, the months of election-related drama has officially come to a close. Whether or not we voted for him, Joseph R. Biden is the 46th President of the United States. Despite my own reservations about the equities sector, I’d like to present the other side of the argument. A transition in power is always exciting for investment opportunities and that is especially the case for stocks under $10.
First off, they exist. While the novel coronavirus has devastated Main Street and particularly small businesses, it’s been a cynical boon for Wall Street. As now-former President Donald J. Trump stated in his farewell address, the market is now higher than it was right before the pandemic. While that’s positive on a broader sentiment scale, it presumably doesn’t bode well for stocks under $10: all the good opportunities are taken.
However, that might not necessarily be the case. True, the high-profile companies have jumped substantially higher. In large part, this is due to a new wave of investors diving into the market. But typically, as shares enjoy substantial upside, the ability to keep on moving forward is limited. That’s just a combination of math and nature at work. And this makes stocks under $10 all the more attractive.
Indeed, there are several plays available across many relevant sectors that are just waiting for wider recognition. Just in the New York Stock Exchange alone are listed 2,800 companies. It’s not possible for Robinhooders – or any demographic, frankly – to load their portfolio with 2,800 stocks to buy. Certainly, I would reject any offers to write about them in a single piece: can you imagine!?
Further, there’s a strong case to be made for discounted equities. The high-flying names are subject to market gravity, which amplifies the risk of potentially holding the bag. But with these 10 stocks under $10, you’re possibly taking some of this risk off.
- Magal Security Systems (NASDAQ:MAGS)
- Zix Corporation (NASDAQ:ZIXI)
- Accuray (NASDAQ:ARAY)
- Kinross Gold (NYSE:KGC)
- Ocean Power Technologies (NASDAQ:OPTT)
- Mazda Motor (OTCMKTS:MZDAY)
- GoPro (NASDAQ:GPRO)
- Canaan (NASDAQ:CAN)
- Ammo Inc (NASDAQ:POWW)
- Numinus Wellness (OTCMKTS:LKYSF)
Now, I want to be clear that most of these companies are speculative. My wager, then, is that these are solid companies that have been hit with bad timing or they’re levered to incredibly relevant trends. Please keep this in mind as we rifle through these 10 stocks under $10.
Magal Security Systems (MAGS)
As the name suggests, Magal Security Systems specializes in physical and cyber security solutions for critical infrastructures. In addition, Magal provides safety and site management. These broad security needs have always been pressing. However, with the devastating impact of Covid-19, MAGS stock has arguably never been more pertinent.
One of the heartwarming elements of this crisis – and one that doesn’t get as much media coverage as the bad news – is that Americans from all walks of life came together, helping their neighbors in need. Predictably, though, nefarious actors saw the pandemic as an opportunity to wreak digital carnage. Sadly, this is one of the pivotal catalysts for MAGS stock – we desperately need the underlying services.
As well, the recent unrest in Washington demonstrates that both online and offline security protocols are vital. Therefore, Magal should have an opportunity to please among the stocks under $10.
Zix Corporation (ZIXI)
Similar to the thesis for Magal, Zix Corporation is in the business of keeping assets safe. In this case, the company focuses on email encryption and other platforms designed to secure cloud migration and protect operations under the modern workplace. Indeed, with Covid-19 cases still elevated despite a huge drop recently in daily infection rates, the modern workplace could still be mired in the new normal, boosting the narrative for ZIXI stock.
While telecommuting has been a true blessing for millions of worker bees, it poses a security nightmare for corporations. That’s because the footprint of potential vulnerabilities has expanded. Logically, this means cybersecurity demand is at or near all-time highs, which benefits ZIXI stock.
Furthermore, Forbes council member Stefan Leipold points out that you can’t put a firewall in the human brain. And because so much confidential information is passed through email, the potential for data breaches is great. It’s discomfiting for sure, but it also makes ZIXI one of the best stocks under $10.
Accuray is a fast mover among the stocks under $10, so there’s a chance that this could be closer than initially anticipated to the threshold by publication time. But if you don’t mind the risk of riding up strong momentum, ARAY stock is a name you should consider.
Specializing in advanced radiation therapy for cancer patients, Accuray distinguishes itself through its precision application of therapy. This could be the groundbreaking development in our battle against the dreaded disease. Personally, I’ve always found traditional radiation therapy to be brutish. Yes, it kills the cancer, but you don’t want to also kill the patient. With Accuray, we can now apply intelligence to this otherwise anachronistic approach.
Of course, the coronavirus pandemic has not been helpful for patients and care providers of chronic conditions. But at some point, this too shall pass. Therefore, ARAY stock appeals as a forward-thinking contrarian investment.
Kinross Gold (KGC)
On multiple levels, 2020 was an unprecedented year. I think I speak for everyone when I say I’m glad it’s over. But because it was so wild, many on Wall Street naturally scrambled to the safety of gold bullion. This boosted several mining firms like Kinross Gold. However, weakness in the gold market since late summer has brought golden opportunities in mining stocks under $10.
Therefore, if you don’t mind speculating and can handle volatility, I’d look into KGC stock. Primarily, I don’t believe the economy is as robust as many media pundits say it is. Admittedly, the situation doesn’t look great for precious metals right now because some left-leaning media will probably make the Biden administration look as sterling as possible. However, the destruction of America’s small businesses won’t be healed through pretty rhetoric.
Now, I’ve heard several of my colleagues discuss the wealth transfer that will occur from baby boomers to millennials. Yes, that’s exciting, but keep in mind that baby boomers also own businesses, so what will the disrupted entrepreneurs hand down? Losses? There are many lingering questions, which is why I like KGC stock on the potentially upcoming fear trade.
Ocean Power Technologies (OPTT)
After a while, I tuned out President Trump’s tweets because they often hurt my brain. However, he was right about the ecological impact of wind energy. Windmills do kill birds, not to the same rate as cats and collisions with cell towers but they nevertheless kill.
However, as a 2008 Scientific American article pointed out, windmills killing bats may be the bigger issue. That’s because bats are one of the few creatures that eat crop-killing pests. Thus, bats killed in one region can have a huge negative impact on neighboring areas. Oh, the irony.
Still, you should never underestimate humanity’s resolve to find solutions and Ocean Power Technologies could be it. OPTT stock is levered to wave energy, essentially harvesting practical energy from the kinesis of the ocean. The principal benefit of course is that they’re out of sight, out of mind. And they can be designed in a manner that doesn’t disrupt marine ecology.
Further, wave energy is more predictable than renewable sources like wind and solar, which are intermittent. For that and its broader environmental benefits, I like OPTT stock as one of the speculative stocks under $10.
Mazda Motor (MZDAY)
For an automotive investment, I really wanted to put Ford (NYSE:F) on this list. However, Ford shares are trading above the stated threshold; therefore, they don’t qualify as stocks under $10. No matter, I’m going to with my alternative Mazda Motor and MZDAY stock.
Why Mazda? Frankly, it’s contrarian “AF,” as the kids like to say. Look that up if you don’t know what it means but only at home on your personal device as it’s “NSFW.” Hopefully, you know what that means.
Anyways, MZDAY stock is looking very interesting because according to Car and Driver, the underlying company is releasing its first all-electric vehicle in the form of the MX-30 SUV. Additionally, this attractive (my opinion only, your views may vary) EV will start at $35,000. That will possibly bring serious competition to Tesla (NASDAQ:TSLA), where its cheapest offering is the Model 3 sedan at around the same price.
Look around you: Americans prefer SUVs over sedans if price wasn’t an issue. Beyond that, Mazda has a viable combustion car business, which will still be relevant for many years to come. Like I said, MZDAY stock is contrarian as flub.
While I haven’t touched the subject in a while, when I did cover GoPro, I usually wasn’t too hot on the company’s prospects, to put it mildly. Sure, action cameras are great fun, but they also risk commoditization. Further, it’s a niche market. With social media platforms like TikTok running rampant, you don’t need complicated or specialized hardware – a smartphone will do just fine, thank you very much!
Of course, that doesn’t help the case for GPRO stock and for years, it’s been a downer. But the coronavirus pandemic might change that trajectory on a semi-permanent basis. After all, Hollywood has been one of the most devastated sectors, leaving a huge opportunity gap for action-related content creators. That might explain 2020’s relatively underappreciated surge.
Also, GoPro has always levered strong brand identity. And management may have the right idea with its subscription services, such as unlimited cloud storage. Is that enough for GPRO stock? For now, I’m going to change my mind and peg GoPro as one of the intriguing stocks under $10.
As you well know, cryptocurrencies are once again red hot. However, many of the most viable blockchain reward tokens are priced to the moon. Further, some folks may want the assurances of traditional equity investing. Therefore, a crypto mining equipment provider like Canaan might appeal to gamblers.
Let me be clear: CAN stock is absolutely a gamble. Further, it’s presently correlated with sentiment in the digital markets. Recently, virtual currencies have corrected, translating to severe volatility for Canaan shares. You must not bet more than you can afford to lose here.
But if you understand the risks, Canaan deserves inclusion among stocks under $10. Long term, I see cryptocurrencies moving much, much higher, in part due to the convenience factor. Unlike equities, cryptos trade 24/7/365, making them very accessible for convenience-sensitive millennials.
In addition, the rise and improved efficiencies of renewable energy makes CAN stock more compelling than ever. Plus, there are other creative ways to profit from mining, which is very energy intensive. For instance, why use a heater during the winter months when you can use crypto mining equipment to keep you warm and make you money?
Ammo Inc (POWW)
Last December, I discussed companies that will benefit despite the rocky transition of power. One of the standout names was Ammo Inc. At the time, shares were trading under $3. But right after publication, POWW stock jumped higher. Recently, shares skyrocketed off a very interesting news item.
Several days ago, Ammo announced that “it has entered into a significant international transaction involving 7.62 mm ammunition.” There’s no clue who the foreign buyer is or where they’re from. However, if I had to guess, it’s either Israel or a western European country as the .308 Winchester cartridge that Ammo produces is similar (though not identical) to the 7.62 NATO cartridge that these regions use.
Again, that’s my speculation. But whatever the case, the international sales channel adds to domestic demand for ammunition. Indeed, the narrative for POWW stock has only accelerated because of the incoming Biden administration. I don’t think I’m going out on a limb by saying it won’t be very gun-friendly.
That might disappoint Second Amendment advocates. Be encouraged, though. POWW still qualifies as one of the stocks under $10.
Numinus Wellness (LKYSF)
In late 2019 (and right before the coronavirus pandemic), the Food and Drug Administration designated psilocybin therapy as a “breakthrough therapy.” Specifically, there’s massive interest in using psychedelics to address treatment-resistant depression or depression in patients where previous approaches have failed.
Numinus Wellness is one of the growing list of companies that’s researching and developing psychedelics for alternative treatment solutions. That gives LKYSF stock tremendous upside potential. However, risks are plentiful. Obviously, with the rapid rise and deflation of the cannabis industry prior to Covid-19, many investors are gun shy about non-traditional medicines.
I’m not going to give you a fluff piece on psychedelics. So far, my personal investments in this sector have done well. However, past performance doesn’t guarantee future success. Thus, you must be super careful with LKYSF stock.
That said, what separates psychedelics from cannabis is the high barrier to entry. Because of the hefty regulations involved, you’ve got to be serious if you want to be in this space. Again, this doesn’t guarantee anything, but if you’re looking for the most powerful play among stocks under $10, Numinus might be it.
On the date of publication, Josh Enomoto held a long position in gold and F stock.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.