There are plenty of bargains to be had in the markets these days, particularly if you’re willing to do some digging around.
Each of the five companies listed below not can be had for less than $5 per share, making them not only viable candidates for a dollar cost averaging strategy but also strong candidates to be included as small speculative positions in any investor’s portfolio.
Stock in Maxar Technologies (TSX:MAXR)(NYSE:MAXR) has been hit extremely hard over the past 12 months. MAXR shares have lost over 90% of their value since last summer in what has proven to be a tremendously difficult transition period for the company.
Maxar is currently in the process of re-positioning itself to go after the lucrative U.S. defence market, yet so far at least the market appears to have lost patience with the turnaround strategy, selling the stock sharply and leaving it trading at a heavily discounted valuation.
Technically, MAXR shares are trading above $5 on the TSX, closing Tuesday at $5.45, yet the company’s NYSE listed common stock closed Tuesday at just US$4.04. Regardless, Maxar is just too interesting of an opportunity right now to keep it from making this list.
DHX Media (TSX:DHX)(NASDAQ:DHXM) is another company whose share price has been pummeled heavily over the past year or so. While the shares at one point traded above $10, lately they have been trading closer to the $2 range.
DHX is coming of a series of quarterly earnings results that failed to meet analyst expectations, yet the bright spot all along has been DHX’s children-directed Wild Brain series, which streams on demand on through Alphabet’s popular YouTube channel.
YouTube has been pushing hard to monetize the site’s traffic in recent months, and it will certainly be interesting to see if DHX will be successful in taking advantage for its own benefit.
In a way, it’s strange to see a company like Bombardier (TSX:BBD.B) make this kind of list. It’s been a staple of Canadian industry for such a long time. Yet the firm got itself into a bit of hot water a few years ago thanks to issues with its CSeries program and has had trouble regaining investor confidence since.
Shares at one point more than doubled in value, yet they have given back much of those gains and are now back trading below $3. This could be another example of investors locking in their short-term gains, in which case BBD stock could be a prime buy-on-the-dip candidate.
When that happens, it will often tend to amplify any negative momentum surrounding the company; on top of that, any institutions and portfolio managers that are benchmarking against said index will likely end up selling the company’s shares as a result. Yet gold markets have been resilient thus far in 2019, with many Canadian-listed gold miners showing strong gains through the first three months of the year.
Yamana, however, been lagging the pack, which could make it a strong relative value buy.
The proverbial icing on the cake may have been when the company once again announced a major cut to its monthly dividend in January. It also announced a plan that could see it repurchase up to 7% of its outstanding common stock.
Personally, I like the move to refocus capital towards buying back the undervalued shares while they trade at such bargain prices. Meanwhile, CPG stock is currently trading at just a fraction (36%) of the firm’s book value.
This is certainly a stock that I’ll continue to keep my eye on.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Fool contributor Jason Phillips has no position in any of the stocks mentioned. David Gardner owns shares of Alphabet (A shares) and Alphabet (C shares). Tom Gardner owns shares of Alphabet (A shares) and Alphabet (C shares). The Motley Fool owns shares of Alphabet (A shares) and Alphabet (C shares). Maxar is a recommendation of Stock Advisor Canada.