While most of Wall Street focuses on large and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy. Many of the biggest public companies, especially the technology giants, trade in the hundreds, all the way up to over $1,000 per share or more. At those steep prices, it’s pretty hard to get any decent share count leverage.
Many investors, especially more aggressive traders, look at lower-priced stocks as a way to not only make some good money but to get a higher share count. That can really help the decision-making process, especially when you are on to a winner, as you can always sell half and keep half.
Each week we screen our 24/7 Wall St. research database looking for stocks rated Buy at top Wall Street firms priced under the $10 level and this week we found five new stocks covered by the analysts at Roth Capital Partners that could provide investors with some solid upside potential. While more suited for aggressive investors, they could prove exciting additions to portfolios looking for solid alpha potential.
it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This company is producing solid revenue and is a great idea for aggressive traders. Lantronix Inc. (NASDAQ: LTRX) provides software as a service (SaaS), engineering services and hardware for edge computing, the Internet of Things (IoT) and remote environment management in the Americas, Europe, the Middle East, Africa and the Asia Pacific Japan.
The company’s IoT products include IoT Connectivity, which provides wired and wireless connections that enhance the value and utility of modern electronic systems and equipment through secure network connectivity, application hosting, protocol conversion, secure access for distributed IoT deployments and various other functions.
Further, its SaaS platform enables customers to deploy, monitor, manage and automate across their global deployments through a single platform login. The company offers its products through value added resellers, systems integrators, distributors, online retailers and original equipment manufacturers, as well as an e-commerce site for direct sales. Lantronix was founded in 1989 and is headquartered in Irvine, California.
Roth Capital has set its price objective for the shares at $6.60. That compares with the $6.17 Wall Street consensus price. The shares have traded between $4 and $5 for the past month.
If IoT excites investors, then this is an outstanding small-cap play. ORBCOMM Inc. (NASDAQ: ORBC) offers network connectivity, devices, device management and web reporting applications that are designed to track, monitor, control and enhance security for various assets, such as trailers, trucks, rail cars, sea containers, power generators, fluid tanks, marine vessels, diesel or electric powered generators, oil and gas wells, pipeline monitoring equipment, irrigation control systems and utility meters in transportation and supply chain, heavy equipment, fixed asset monitoring and maritime industries, as well as for governments.
It also provides satellite automatic identification service data services for vessel navigation and to enhance maritime safety for government and commercial customers. It provides vehicle fleet management, as well as in-cab and fleet vehicle solutions using various network platforms, including its own constellation of low-Earth orbit satellites and accompanying ground infrastructure, as well as terrestrial-based cellular communication services through reseller agreements with various cellular wireless providers.
In addition, the company offers customer solutions utilizing additional satellite network service options through service agreements with third-party mobile satellite providers, and it resells service using the two-way Inmarsat satellite network to provide higher bandwidth.
Roth Capital has a $7.50 price target, which is in line with the consensus target of $7.40. Shares recently crossed the $6 mark for the first time in more than a year.