Each of these stocks is on sale for a fiver. Which one is best?
Shop ’til you drop
Something shocking happened in the first week of October for Plaza Retail REIT (TSX:PLZ.UN), a Fredericton-based retail real estate company. The trading volume increased to 4.5 million shares trading hands, roughly 10 times the usual volume. The largest buyer must have been the company itself as weeks prior announced intention to buy back a boatload of shares. I love to see a company buy its shares back when the stock price is cheap. This is a resounding sign that Plaza Retail is pulling out of the secular retail tailspin after the protracted 20% pullback. Investors now have a chance to lock-in 7% in dividend yield.
Can’t catch your breath
Viemed Healthcare, Inc. (TSX:VMD) wins my prize for scariest roller coaster ride for the month, swiftly recovering from November 19, when shares fell 18% in one trading day. Volume reached such a frenzy that trading was halted. The company released a statement stating that it “suspects that the activity could be related to a recent report that Centers for Medicare and Medicaid Services (CMS) is considering adding various codes to the next round of the Competitive Bidding Program (CBP), one of which is ventilators.” Investors holding their shares will have nerves of steel. With such strong revenue forecasts, it will be good to see this volatility behind us.
Not too cosy
Roots Corporation (TSX:ROOT) chart looks like a winter ski slope that is missing a jump at the bottom of the run, leaving no opportunity to soar to new heights. This iconic brand posted another report in which the six months earnings per share was negative at -$0.10 per share. On the bright side, this is an improvement from the same period in 2017. Of all the retail businesses, I find clothing to be too fickle for investment. And although the comfy Roots clothing is great, it’s not enough to make me buy shares — despite trading below $5 at writing — an all-time low. The share price may bottom just in time for the holidays, a fitting gift for investors who recognize that Roots is currently in its most profitable quarter.
Gold is a hedge
When the US dollar starts to fade, currency investors turn to gold and capitalize on the currency trend reversal. One way to execute a gold hedge is buying shares in IAMGOLD Corporation (TSX:IMG), trading below $5 at the time of writing, and one of the larger gold mining stocks on the TSX.
Analysts are pricing Brick Brewing Co. Limited (TSX:BRB) to go up one dollar from its price of $3.40 per share at the time of writing. Investing in this brewing company is a vote that the secular craft beer trend will continue, but I’m not bullish for some of the reasons described this summer by a fellow Fool contributor. Long-term headwinds in the sector are from consumer data that state beer consumption continues to decline.
There’s no excuse for starting an investing journey when as little as five dollars gets you started (trading fees aside). A portfolio needs to be diverse, which is where smaller priced equities can help. If I had to pick one from this list, I’d select Plaza Retail as a contrarian play because, no, retail is not dead. Will Ashworth provides three reasons to own Plaza Retail, benefiting from the large dividend and the solid prospect of capital appreciation into 2019.