The liquidity of cheap stocks can be thin, so watch the spread between bid and ask prices before investing. Keeping a tight control on losses is crucial when investing. Here are five cheap stocks to consider:
- AudioEye (AEYE) – Despite being a micro-cap stock, it has been featured in this column. With a market value of $86 million, AudioEye has yet to post an annual profit, but sales have increased over the past eight quarters. AEYE joined this column in the final week of March and still has potential if the breakout succeeds.
- Ardelyx (ARDX) – A member of IBD’s biotech industry group, Ardelyx shot out of a new base on March 3, after reporting excellent results. Ardelyx is now trading 20% to 25% higher than the 3.44 entry point. The small cap’s market value has now topped $950 million.
- Betterware de Mexico (BWMX) – BWMX is rallying after securing buying support at the rising 50-day moving average. The stock outperformed the S&P 500 and the Nasdaq with a 14.9% weekly gain in heavy turnover. BWMX trades just 38,400 shares a day.
- LSI Industries (LYTS) – Since the summer of last year, LSI Industries has been on the upswing. However, the stock felt the market’s selling heat on March 10, falling 10% in heavy volume. Shares also undercut the 50-day moving average for the first time in more than four months.
- Unity Software (U) – With a market cap of $18.8 billion, Unity Software creates software for the gaming and entertainment industries. It posted a loss of 10 cents per share in the fourth quarter but revenue rose 39% to $269.3 million. On Wednesday, it reported a deal to acquire Parsec, a cloud-based gaming company. It has yet to break out but is on the cusp.
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Gregory Timmons
Only Headline Contributor
On the date of publication, Gregory Timmons did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer/contributor.
