Unlike any of my other screens, this stock screen focuses on stocks trading under $10/share, and have a market cap of around $1 billion or less. As for the variables that I used in the screen, I focused on fundamentals, particularly companies that have a healthy balance sheet with little debt to speak of, with a strong prospect for rapid sales and growth in earnings, as well.
Now be aware, that these kinds of stocks carry huge risks to them. A simple downgrade, news event, or missed earnings target, can derail these small-cap stocks in a heart beat. But if you have some capital that you want to roll the dice with, these stocks will give you a good start in your research.
Keep an eye on Ariad Pharmaceuticals – it could definitely see a push to $10+ if it manages to break $8.58. Another is Power-One Inc (PWER) which is trying to form a double bottom at its current levels, and Depomed (DEPO) a high risk drug play, has some support at the breakout level of the late January gap-up. Finally, USA Technologies (USAT) has formed a double-bottom and is looking to breakout to new highs at $2.70.
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