Beginner investors often think if the company's stock price per share is higher then that means the company's fundamentals are more solid. This is a common misconception among all the new investors that do not understand the concept of authorized shares, float, outstanding shares, etc. for example, let's look at Citigroup (NYSE:C) whose shares are currently trading at $4.89. The stock has a market capitalization of $142 billion in trailing PE of 14.05 and a forward PE of 9.06 with a PEG ratio of 0.72. Yet this company is overlooked by many investors because of its price being under five dollars. In addition, many institutions are not allowed to invest in a company that trades below five dollars even though its market cap is satisfactory.
What about Crocs Inc. (NASDAQ: CROX) company with a market capitalization of $1.7 billion, a trailing PE of 30.37, P/E ratio of 18.04 and a PEG ratio of 1.57. this stock used to be a $70 company per share as it drifted into a penny stock the year ago before starting to make his comeback against. I invested in this company couple of years ago when the new Crocs shoes were in fad. However, I lost my shirt when imitation crocs shoes begin to appear in every corner store or gas stations.
Crocs, Inc. is a designer, manufacturer, distributor, worldwide marketer and brand manager of footwear for men, women, and children. The Company designs and sells an offering of footwear, apparel, gear and accessories that utilize its closed cell-resin, called Croslite. The Crocs footwear products are divided into four categories: Core, Active, Casual and Style.
Another good one is Star Scientific (CIGX) with a market capitalization of $219 billion and a trading price of $1.84. The stock is good for a long-term investment outlook as well. In order for me to invest in a small-cap stock, other fundamental factors should come into play. Star scientific has in making products to help people overcome their smoking habits. They're in the process of selling candy like product called CIGRx, where they have isolated the chemicals that they think are the real reasons people are smoking cigarettes. in addition I also look at media insider trading activity as there has been a massive insider buying that pushed the PPS from $.60 a share to $1.14 a share which was purchased by the CEO of the company. Stocks have climbed 2.79% so far with a volume of 617,000 shares.
Star Scientific Corporation has been engaged in development, implementation, and licensing of tobacco curing technology that usually prevents the formation of carcinogenic toxins present in tobacco smoke. It also involves in the manufacture, sale, marketing and, development of very low TSNA dissolvable smokeless tobacco products.
Emergent Group Inc. (AMEX: LZR) has a market capitalization of $58 million but has a price per share that is reaching towards $10. Friday this stock was trading at $6 range, but today the company soared 39% to settle at $8.40. The volume has exploded 20 times the average volume of 25,691.
The rally was due to the announcement that the company has signed a definitive agreement with the Universal Hospital services, whereby it will make a cash tender offer of $8.46 per share for all outstanding shares of the Emergent Group after a customary quote unquote go shop of 21 days.
Emergent Group Inc. is the parent company of PRI Medical Technologies, Inc., its wholly owned and primary operating subsidiary (PRI Medical). PRI Medical is a provider of surgical equipment on a fee for service basis to hospitals, surgical care centers and other healthcare providers.
I also like Ivanhoe Energy (NASDAQ: IVAN) despite its drop of 1% today. It has been trading from $1.46 up to $3.89 for the past 52 weeks with an average volume of 1.4 million shares. The company announced that its probable plus reserves have been recognized for the Tamarack Project. In addition, Geo Jay petroleum consultants have assigned estimated probable plus possible bitumen reserves of 220 million barrels and probable bitumen reserves of hundred and 76 million barrels to Tamarack project. Ivanhoe energy holds a 100% stake in this project which is expected to produce at 40,000 barrels per day for at least 30 years. Whoa!
Ivanhoe Energy Inc. is an independent heavy oil development and production company. The Company operates in four segments: Oil and Gas-Integrated, Oil and Gas-Conventional, Business and Technology Development and Corporate. The Company's operations are carried out in Canada, China, Mongolia and Ecuador.
OTCPicks.com is not a registered investment advisers or broker/dealer. OTCPicks.com makes no recommendation that the purchase of securities of companies profiled in this website is suitable or advisable for any person or that an investment such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market their securities, investing in such securities is highly speculative and carries a high degree of risk. Always do you own homework before investing in any stock.
Forward-Looking Statement: This press release includes "forward-looking statements" within the meaning of the federal securities laws, commonly identified by such terms as "believes," "looking ahead," "anticipates," "estimates" and other terms with similar meaning. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company's projections and expectations are disclosed in the Company's filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions.
Disclosure: OTCpicks.com has not been compensated for any stocks listed in this stock news report
