There’s something racy about a stock selling for less than $10.
Of course, any finance professor will tell you that the absolute price of a stock means nothing. The stock price is a function of how many shares are outstanding. Companies can issue as many shares as they like. So, the odds of making a profit on a $9 stock and a $90 stock should be the same.
One can agree with the professors intellectually and still feel an emotional thrill when speculating in a stock with a single digit price. Often, low-priced stocks are issued by smaller companies. Frequently, they are volatile. Buying them feels like taking a trip to the race track.
Once a year, I offer some recommendations on stocks selling for less than $10 a share. (Prices are as of June 21.) Ready? Here we go.