Nine Sub $10 Stocks Likely to Rally Up to 80% in 2014: Investment Idea of the Day

Published:

Ubika Research has shortlisted 9 attractive stocks trading below $10 across sectors which are likely to outperform their peers and broader markets by providing price returns of up to 80% in 2014, based on average price targets of analysts polled by Bloomberg. We have picked stocks which have registered sales of over $10 million during 2013 and have strong free cash flow. Additionally, these stocks have reported strong growth in sales and EPS during 2013 and are estimated to register strong growth in 2014. We note that these stocks are rated a ‘Buy’ by a majority of the analysts covering these stocks and have three months average trading volume of over 100,000.

Company Name

Exchange

Ticker

Market Cap
(MN)

Last Price

Average Volume
(3-Month)

Price Change
(3-Months)

Sales Growth
(2013)

Sales Growth
(2014E)

EPS Growth
(2013)

EPS Growth
(2014E)

Free Cash Flow (MN)
(2013)

Consensus Target Price

Implied Upside

Ultra Clean Holdings

NASDAQ

UCTT

241.4

8.20

544,118

-27.7%

10.1%

5.6%

85.0%

52.3%

27.0

14.70

79.3%

Enterprise Group Inc

TSX

E

152.1

1.05

1,727,235

4.0%

88.3%

138.2%

100.0%

53.8%

NA

1.57

49.2%

Cimatron Ltd

NASDAQ

CIMT

72.9

6.79

233,538

-23.9%

4.6%

107.2%

22.5%

13.1%

3.0

10.00

47.3%

PGT Inc

NASDAQ

PGTI

463.8

9.82

596,174

-8.1%

37.1%

11.2%

223.5%

7.3%

18.2

14.25

45.1%

Gran Tierra Energy

NYSE

GTE

1,921.6

7.04

886,884

-5.4%

23.6%

33.0%

28.6%

31.6%

153.5

10.01

42.2%

Gramercy Property Trust Inc

NYSE

GPT

371.3

5.20

733,508

-9.1%

54.0%

11.0%

49.0%

135.3%

21.1

7.00

34.6%

Western Forest Products Inc

TSX

WEF

1,029.8

2.39

3,423,626

-5.9%

5.6%

8.5%

383.3%

14.8%

51.7

2.91

21.7%

Information Services Group

NASDAQ

III

194.6

5.21

202,130

-4.1%

9.5%

9.7%

550.0%

14.8%

21.2

6.25

20.0%

Rock Energy Inc

TSX

RE

272.4

6.89

666,419

80.4%

53.3%

115.4%

83.9%

NA

NA

7.92

14.9%

Source: Bloomberg
Market Cap & Last Price are in their respective currencies

Company Description:

Ultra Clean Holdings Inc (NASDAQ: UCTT)
Ultra Clean Holdings, Inc. develops and supplies critical subsystems for the semiconductor capital equipment industry, focusing on gas delivery systems. These gas delivery systems enable the precise delivery of specialty gases used in a majority of the key steps in the semiconductor manufacturing process.

Enterprise Group Inc (TSX: E)
Enterprise Group, Inc. is a pipeline construction and oilfield maintenance company. The company seeks business in Central and Northern Alberta’s oilfields.

Cimatron Ltd (NASDAQ: CIMT)
Cimatron Limited designs, develops, manufactures, markets, and supports modular, fully integrated computer-aided design/computer-aided manufacturing software products. The company’s products are sold to end-users in various industries, including automotive, aviation and aerospace, household goods, mold and die making, machinery and tools, and telecommunications.

PGT Inc (NASDAQ: PGTI)
PGT, Inc. manufactures and supplies residential impact-resistant windows and doors.

Gran Tierra Energy Inc (NYSE: GTE)
Gran Tierra Energy, Inc. is an international oil and gas exploration and production company. The company currently holds interests in producing and prospective properties in Colombia, Argentina and Peru.

Gramercy Property Trust Inc (NYSE: GPT)
Gramercy Property Trust Inc. is a fully-integrated, self-managed commercial real estate investment company focused on acquiring and managing income-producing industrial and office properties net leased to high quality tenants in major markets throughout the United States. The company also operates an asset management business.

Western Forest Products Inc (TSX: WEF)
Western Forest Products Inc. is an integrated forest products company and a coastal woodland operator located in British Columbia, Canada. The company’s activities include timber harvesting, reforestation, sawmilling logs into lumber and wood chips, value-added remanufacturing, and producing NBSK pulp.Western Forest’s products are sold in various countries worldwide.

Information Services Group Inc (NASDAQ: III)
Information Services Group, Inc. is a consulting company. The company provides advisory, analytics, strategy, development, negotiation and implementation, enterprise resource planning, and business process transformation support services. Information Services Group conducts business worldwide.

Rock Energy Inc (TSX: RE)
Rock Energy Inc. acquires, explores, and develops oil and gas properties. The company is currently producing oil and gas on its property located in Alberta, Canada.

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