Financial Mirror (Cyprus) - - FRONT PAGE -

Stocks re­main close to all-time highs, but in­vestors are get­ting used to be­ing told that the bull mar­ket has be­come a stock picker’s mar­ket, but some­times the stocks trad­ing un­der $10 have in­cred­i­ble upside price tar­gets from an­a­lysts.

As a note of cau­tion, stocks trad­ing un­der $10 are of­ten among the riski­est stocks in the mar­ket. To prove a point, only four of the mem­bers in the S&P 500 In­dex have share prices un­der $10 - and only one of them trades un­der $9. Still, many in­vestors are at­tracted to lower-priced stocks as they feel like there is larger room for upside.

An­other con­sid­er­a­tion on risk in most of the stocks un­der $10 is that al­most all of these selected from this past week would fail the “wid­ows and or­phans” suit­abil­ity test. This is what bro­kers and fi­nan­cial ad­vi­sors have to con­sider when it comes to ethics and suit­abil­ity for clients.

These are the nine an­a­lyst stocks we tracked this past week that were trad­ing un­der $10 and have huge im­plied upside, if the an­a­lysts are cor­rect in their calls.

saw a gain of more than 4% on Fri­day to $8.31, af­ter Jef­feries started cov­er­age with a Buy rat­ing and as­signed a $14 price tar­get. The driver is en­roll­ment in its eye study trial has ended. While this biotech player has an im­plied upside of 68% to the Jef­feries tar­get price, the 52-week range is $5.06 to $10.86, and a call from Cit­i­group in May gave Am­pio a whop­ping $21 price tar­get.


calls un­der



is back again in the Im­pe­rial Cap­i­tal start­ing cov­er­age as Buy and with a $7 price tar­get last Thurs­day. The $473 mln small cap power gen­er­a­tor has a 52-week range of $2.11 to $5.36. This $7 tar­get is the high­est among an­a­lysts by far, and shares rose 4% on the up­grade and an­other gain of al­most 6% on Fri­day to close out at $3.92.

saw keen an­a­lyst ac­tion last week, with one dar­ing to call this $8.97 stock a dou­ble. Sterne Agee re­it­er­ated its Buy rat­ing and as­signed an $18 tar­get price. The con­sen­sus price tar­get is closer to $11. An­other call was seen from BMO Cap­i­tal Mar­kets, rais­ing its rat­ing to Mar­ket Per­form from Un­der­per­form (sell), and its price tar­get was raised to $9.50 from $7.00.

is per­haps an over­looked and for­got­ten soft­ware and hard­ware player in stor­age. Shares closed at $4.41 on Fri­day af­ter fall­ing al­most 4%, but Roth Cap­i­tal Part­ners started cov­er­age on Fri­day with a Buy rat­ing and gave it a price tar­get of $7.00. This im­plies nearly 60% upside, and the con­sen­sus price tar­get is $6.00 on the stock.

saw a very un­usual gain of al­most 14% on Fri­day. The driv­ing force was an an­a­lyst re­port from CIBC World Mar­kets with a $3 price tar­get. That would im­ply upside of more than 50%, even from the $1.93 post-up­grade gain on Fri­day. Just keep in mind that this was a $1.50 stock at the close of trad­ing last Wed­nes­day, so it has al­ready ramped up 29% in just the past two trad­ing ses­sions and on strong trad­ing vol­ume.

was cov­ered much more favourably than ri­val Sta­ples by Mor­gan Stan­ley, with an Equal Weight rat­ing ver­sus an Un­der­weight rat­ing. The Equal Weight might not be ex­ces­sively bullish, but the $6.35 price tar­get im­plied upside of 12% from the $5.66 prior close and slightly more than the $5.62 clos­ing price on Fri­day.

was re­it­er­ated as Buy at Mer­rill Lynch ear­lier last week in more de­tailed cov­er­age. While the con­sen­sus price tar­get is $4.25, Mer­rill Lynch main­tained its $5.00 price tar­get. Sir­ius XM closed at $3.43 on Fri­day, im­ply­ing upside po­ten­tial of 45%.

was started with an Out­per­form rat­ing on Thurs­day by North­land Se­cu­ri­ties. The $340 mln au­dio tech­nol­ogy player was at $9.43 prior to the call, but by Fri­day’s close the stock was down to $9.01. North­land’s $15 price tar­get now im­plies 66% po­ten­tial upside. Its 52-week range is $7.58 to $17.90, and at least one other an­a­lyst sees the stock val­ued even above $20.

was picked up in new cov­er­age by H.C. Wain­wright & Co. on Fri­day with a Buy rat­ing and a $2.65 price tar­get. This mi­cro­cap wire­less and pay­ment player closed at $2.02 on Fri­day, im­ply­ing more than 30% upside re­mains. Its 52-week range is $1.40 to $2.48, and its mar­ket cap of $72 mln val­ues it at well un­der two-times cur­rent rev­enue trends.

Last week’s high upside an­a­lyst picks un­der $10 in­cluded shares of Apollo In­vest­ment, At­lantic Power, Black­Berry, Bal­lard Power, Com­pu­gen, Or­b­itz, MeetMe and more for a to­tal of 11 stocks. Also, our cov­er­age of Fri­day’s key an­a­lyst up­grades and down­grades in­cluded Al­coa, Cigna, In­tel, Molina Health­care, Teva Phar­ma­ceu­ti­cal, Unit­edHealth and more than a dozen additional stocks.

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