Hi there, Fools. I’m back to highlight three stocks under $10. While low-priced stocks carry plenty of risks, they can be a source of ideas when looking for:
- small, obscure, and underfollowed companies;
- dirt-cheap bargains; or
- intriguing turnaround situations.
If you have big dreams of turning an average $27K TFSA into $1,000,000 in 20 years, you’ll need explosive returns to do it. So if you’re looking to get your 2020 off to an explosive start, this should be a good place to start.
Let’s get to it.
Golden choice
Leading off our list is gold producer Kinross Gold (TSX: K)(NYSE: KGC), which is up 39% over the past year and currently trades at a price of $6.10 per share.
Kinross should continue to lean on strong gold prices, a solid liquidity position ($1.8 billion), and production excellence in 2020. In the company’s Q3 results, production improved 3.7% to 608 thousand gold equivalent ounces.
More importantly, the company’s adjusted operating cash flow in Q3 more than doubled to $295.4 million.
“Our portfolio of mines continued to perform well during the third quarter, delivering higher production, lower costs and more than doubling adjusted operating cash flow compared with the same period last year,” said CEO J. Paul Rollinson.
Kinross shares currently sport a comforting beta of 0.4.
Berry tempting turnaround
Next up, we have mobile technologist BlackBerry (TSX: BB)(NYSE: BB), whose shares are down 10% over the past year and currently trade at price of $6.46 per share.
BlackBerry’s turnaround efforts took hold in the latter half of 2019, and there should be more of the same in 2020. The stock took off last month after BlackBerry’s Q3 revenue jumped 23% and operating cash flow clocked in at $40 million.
More importantly, management now sees full-year 2020 earnings per share of $0.08 (above the $0.06 consensus) on revenue growth of 20%.
“I am pleased with our progress,” said Chair and CEO John Chen. “Our pipeline is growing as we deliver against our product roadmap and execute on our go-to-market expansion.”
BlackBerry shares sport a beta of 1.4.
Electric situation
Rounding out our list is electricity company TransAlta (TSX: TA)(NYSE: TAC), which has soared 55% over the past year and currently trades at a price of $9.09 per share.
Solid operational performance and sound financials should continue to support impressive gains in 2020. Just last month, in fact, management raised its free cash flow guidance from $300 million–$340 million to $350 million–$380 million.
Moreover, the company continues to track within a $875 million–$975 million range of comparable EBITDA for the full-year 2019.
“We continue to be pleased with the Alberta thermal business which showed stronger margins and availability performance,” said CEO Dawn Farrell in the most recent quarter. “With the Pioneer Pipeline contract now in place, we see further improvements in that business segment.”
TransAlta shares currently offer a dividend yield of 1.8%.
The bottom line
There you have it, Fools: three amazing stocks under $10 worth checking out.
As always, don’t see them as formal recommendations. Instead, view them as a starting point for more research. Low-priced stocks are particularly fickle beasts, so plenty of homework is still required.
Fool on.
