BALTIMORE (Stockpickr) -- No doubt about it: Traders love low-priced stocks.
I'll let you in on a little secret: Share price doesn't really have an impact on your potential investment gains. At least not directly.
But indirectly, it's true that lower-priced stocks also tend to have lower market capitalizations, a fact that makes them statistically more volatile -- and more apt to make noticeable price moves. That, coupled with the psychological effects of buying sub-$10 stocks makes them worth taking a closer look at.
That's especially true after the 24% rally that we've seen in the S&P 500. Since smaller, more speculative names tend to see their most impressive gains after the more staid blue chips have already made their moves, now is a very good time to take a closer look at stocks that trade for $10 or less.
So, today, we're taking a closer technical look at five of them.
If you're new to technical analysis, here's the executive summary.
10 Best Penny Stocks To Own For 2015: Visa Inc.(V)
Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.Advisors' Opinion:
- [By WWW.DAILYFINANCE.COM]
Alamy NEW YORK -- Visa wants to make it easier for people to spot a cheaper prepaid card. The payment processor said it will put labels on packages of cards that meet a new set of standards it unveiled Tuesday. Those standards include a flat monthly fee and no hidden charges. Companies that issue Visa prepaid cards will have to apply for the new label, and the program is voluntary. It could take up to a year before the seal of approval starts showing up on packaging. Prepaid cards are mainly aimed at people without checking accounts. The cards allow people to pay bills, receive direct deposits and swipe it like a debit card in stores. But critics have said some cards aren't clear about what they charge, even attracting attention from the Consumer Financial Protection Bureau. The federal agency is currently testing fee disclosures that it may propose on prepaid card packaging. Visa (V) hopes its new label will push card issuers to be more transparent and lower fees. To receive the label, the card must have no fees for declined transactions, calling customer service, paying at a cash register, using in-network ATMs or for getting cash back at a register. The cards also must be insured by the Federal Deposit Insurance Corp. or the National Credit Union Administration. They will also have Visa's fraud protection. The new standards were developed with the Center for Financial Services Innovation and The Pew Charitable Trusts. Visa hasn't come up with a new name for the label yet, said Cecilia Frew, who oversees its prepaid card business. Since card issuers need to apply to receive the label, it could be nine to 12 months before Visa starts awarding them. The new label is only for U.S. cards. Visa has 25,000 prepaid card partners around the world.
Top 10 Blue Chip Companies To Invest In Right Now: International Business Machines Corporation(IBM)
International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.Advisors' Opinion:
- [By Rich Smith]
IBM (NYSE: IBM ) is going to buy cloud computing provider�SoftLayer.
For months, reports have been circulating that IBM and EMC were competing for the right to acquire privately held, Dallas-based SoftLayer, which provides an infrastructure for cloud-centric, performance-intensive applications for�mobile computing and gaming,�social�media, and�analytics. However, an EMC spokesman said today the company was not competing with IBM. "EMC was initially approached, uninterested and decided not to bid," said Senior Director for Public Relations Dave Farmer.
Top 10 Blue Chip Companies To Invest In Right Now: Philip Morris International Inc(PM)
Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.Advisors' Opinion:
- [By Kelley Wright]
Tobacco is a controversial business; but for Philip Morris International (PM), it's a market basically unaffected by economic slowdowns or rising commodity prices, which means it is stable and defensive; a combination we can live with. We also like the $3.76 dividend, outstanding growth, and a five-year average return on equity of over 160.
- [By John Divine]
Stocks lost ground on Thursday as consumer spending numbers came in below expectations, and institutional investors sold positions ahead of the end of the second quarter. While the S&P 500 Index (SNPINDEX: ^GSPC ) ended modestly lower, Bed Bath & Beyond (NASDAQ: BBBY ) , Tenet Healthcare Corp. (NYSE: THC ) , and Philip Morris International, (NYSE: PM ) were the day's worst decliners. The S&P 500 itself lost two points, or 0.1%, to end at 1,957.
- [By Laura Brodbeck]
ThursdayEarnings Expected From: UnitedHealth Group Incorporated (NYSE: UNH), Verizon Communications (NYSE: VZ), PrivateBancorp, Inc. (NASDAQ: PVTB), PPG Industries, Inc. (NYSE: PPG), Philip Morris International Inc (NYSE: PM), Nokia Corporation (NYSE: NOK), Peabody Energy Corporation (NYSE: BTU), Intuitive Surgical, Inc. (NASDAQ: ISRG), Chipotle Mexican Grill (NYSE: CMG) Economic Releases Expected: Chinese GDP, Chinese industrial production, Chinese retail sales, US industrial production, US housing starts, US building permits
Top 10 Blue Chip Companies To Invest In Right Now: Colgate-Palmolive Company(CL)
Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:
- [By Dan Caplinger]
Moreover, it's starting to appear that Clorox has weathered a tough part of its business cycle. Throughout the industry, Procter & Gamble (NYSE: PG ) , Colgate-Palmolive (NYSE: CL ) , and Clorox all had to deal with rising costs for the inputs they needed to make their respective products. The companies responded by implementing price-cutting measures and passing on part of their higher costs to their customers. For its part, Clorox was able to expand its gross margins by a full percentage point, with a worse-than-normal flu season contributing to sales. Now that input-cost inflation is easing, P&G and Clorox expect to see better profitability, with growth starting to approach the faster rates that Colgate has enjoyed.
Top 10 Blue Chip Companies To Invest In Right Now: Apple Inc.(AAPL)
Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.Advisors' Opinion:
- [By David Goldman]
But Apple (AAPL) has found its voice again in its dynamo engineering chief Craig Federighi.
Federighi spent nearly 1 hour and 17 minutes on stage during Apple's two-hour Worldwide Developers Conference in San Francisco on Monday. CEO Tim Cook called Federighi "Superman," and Federighi joked that Cook was putting him through "some kind of endurance training."
- [By Douglas A. McIntyre]
Apple Inc.�(NASDAQ: AAPL) has created a five day, five night iTunes music festival which will run for the five days of SXSW. It will run from March 11 to March 15. �The event will be free to iTune users.
- [By Brendan Byrnes]
Brendan: You can definitely see it with an Apple (NASDAQ: AAPL ) sitting on, what, something around $150 billion in cash. They don't know what to do with it.
- [By Victor Reklaitis]
Today�� movers & shakers: Hewlett Packard (HPQ) �surged 9% for its best day since May. Infoblox Inc. (BLOX) , a data-center technology company, slid 29% following its weaker-than-expected outlook late Tuesday. Apple Inc. (AAPL) �gained for the third day, closing at its highest since Jan. 2. Read more in the Movers & Shakers column.
Top 10 Blue Chip Companies To Invest In Right Now: Chevron Corporation(CVX)
Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.Advisors' Opinion:
- [By Johanna Bennett]
Among the U.S. majors, ConocoPhillips (COP) fell 1.6% to $70.03, followed by a 1.3% decline by Chevron (CVX) and Exxon�� 1.15% fall.
Services companies and offshore drillers suffered sharper drops.�Halliburton fell 2% to $51.60. Meanwhile,�Transocean (RIG) fell 3.75% to $26.07, while Diamond Offshore and Seadrill (SDRL) each fell 3.5%. Noble (NBL) fell 2.86% to $53.63.
- [By Matt Thalman]
Last week's big losers
Oil giant Chevron (NYSE: CVX ) lost 2.13% this past week, after the company reported its third-quarter earnings that had declined from the same quarter last year. The company did report slightly higher sales figures, but profit fell on weaker margins from the refining business. Still, management and some investors still believe the company has a bright future. Two projects that should boost revenue and profits are Gulf of Mexico deepwater wells and the plan to move natural gas from Australia to Asia, where demand continues to increase and push prices higher. �
Top 10 Blue Chip Companies To Invest In Right Now: McDonald's Corporation(MCD)
McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.Advisors' Opinion:
- [By Nickey Friedman]
Organic healthy food is all the rage, and Chipotle Mexican Grill (NYSE: CMG ) is right in the center of it. As many consumers ditch unhealthy traditional fast food, such as what comes from McDonald's (NYSE: MCD ) , Chipotle finds its sales and income continually busting new records. Its "Food With Integrity" is at the right place at the right time. But is it really a healthy alternative?
- [By Chris Hill]
In this segment, Jason and Taylor tell investors why they'll be watching shares of Transocean (NYSE: RIG ) , Ensco (NYSE: ESV ) and McDonald's (NYSE: MCD ) this week.