5 STOCKS OR LESS (PART 1)

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Five socks $5 or under that is what we’re gonna talk about here today guys i’m gonna tell you about five different stocks here all these stocks are five dollars or less all right now a few things i want to get into before we even get into this video the first is if you guys want a second part i can do a second part let me know in that comment section i could do five

More stocks next week it’s up to you alright let me know in that comment section if i see enough demand i’ll do a second part next week the other thing i want to get into here is understand that if you’re investing in the stock this $5 or under a lot of these stocks are down there for good reasons some of them they’re just in the startup mode still so they’re trying

To get their business going alright some of them have been beaten down to the $5 or below level because they have you know had a bad management teams and maybe now they’re trying to turn it around or maybe they had a big competitor come in their space that took market share things like that so just to understand if you’re ever buying stocks that are $5 or under do

As much research as possible in those companies all right know that company inside and out because they are riskier than the average stock out there now every once in a while you can hit a big on one of these stocks if you believe in the business model you understand everything and you know you’re right about your bullish thesis some of these stocks you can make a

Ton of money on over time but just make sure you’re doing your research guys there’s risk with every stock you ever invested but especially these ones alright so hope you enjoy that today today’s videos for all those people out there that say i only talk about big companies i only talk about the stocks i own man today we’re not talking about any big companies and

We’re not talking about any big stocks i own so hit a thumbs up if you enjoy this guy’s and let’s get into this the first stock up here is zynga okay zinc is a four dollar stock right now this is the biggest market cap that actually made the list here today it’s actually almost a three and a half billion dollar market caps so pretty big for a stock that’s under

Five dollars a share alright this is a profitable business their forward p/e is looking at about a 21 at the moment if you don’t know who zinga zinga they develop market and operate social games as live services in the united states and internationally the company’s games are played on mobile platforms such as ios and android operating systems as well as social

Networking sites including facebook it also provides advertising services comprising mobile in display ads engagement ads and offers and branded virtual goods sponsorships to advertising agencies and brokers alright so basically this is a mobile game company you may have played some of their mobile games on on your iphone before your samsung device or whatever

You know phone you have or tablet you have you might have played some of their games either currently or in the past and basically they can make money off those games by advertising on them so you click on an ad either by accident or on purpose or you actually buy virtual goods or something like that or also could be sponsorships like somebody sponsors to get in

One of their games you know for like displays and whatnot things like that guy so that’s their business model now this company was in the news for a couple of things recently the first is zynga extended its multi-year deal with the world poker tour all right zynga is taken forward as multi-year partnership with the world poker tour a noted international poker

Tournament series the deal was locked in february of this year the deal incorporates the world poker tour experience into zynga poker one of the popular free to play poker games users can now compete in a virtual world that hosts tournament style play alright there are also incident in the news recently this past month for some really really big news alright so

Zynga is to develop the star wars mobile game and some people are looking at that and they’re saying wow this could be a massive opportunity if they really execute well on this is the star wars mobile game they come out with a great product we know how popular star wars them is a type of thing that if they could really execute at a high level here there’s a type

Of thing that could maybe propel this talk into being you know a two or three or four bagger but the question is can they get that game to be at a popular level where people love it where people engage with it where people want to buy stuff virtual goods all that type of stuff think about you know clash of clans and boom beach and candy crush and a lot of those

Games they make you know ridiculous amounts of money off people actually buying stuff off of those games can zynga get to that place with the star wars game obviously the star wars brand is as strong as it is so a lot of people will try that game regardless if zynga can come out with a great product it could be a transformational thing for the company the question

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Is can they pull that off alright guys now in its latest order signal reported you know some kind of if the numbers here so they reported break-even earnings in the second quarter 2018 against earnings of a penny in a year ago quarter revenues increased 3.7 percent year-over-year to 217 million the growth was supported by solid mobile revenues and successful

Monetization of life services total bookings came in at two hundred and thirty three point nine million up eleven point eight percent year-over-year driven by strong mobile bookings the zacks consensus estimate for earnings was pegged at around three cents so they did come under that but they did beat on their revenues so it was kind of a mixed bag there alright

So that covers a mobile game company that men if they could really execute on that star wars game like like watch out for where this stocks going to go over time if it’s a flop if that games a flop they don’t do a good job you know it could just be stuck at a three four dollar stocks for a long time to come so a lot riding on whatever happens with that star wars

Game down the road ii stock up here is fitbit okay fitbit is right around a $5 share rate now this one has just over a 1 billion dollar market cap on it and it is a company that right now is losing money alright so fitbit they make a ton of different wearable accessories for people that are trying to stay fit for people that are trying to monitor their health and

Things like that alright they also have some very popular apps out there they’ll go with their products and you know they have their new product fitbit charge 3 which has i’ve seen a lot of very positive reviews on that product and their products you always get pretty high reviews if you go to like best buy com you’re gonna see pretty much all their products have

Very very high reviews it’s not a company that makes bad products or something like that there should make very good products if people actually love these products but the main issue is the head you know the toughest competitor come in their space and focus in a big way and that is apple okay so apple so you know watch series 4 is now out and a lot of people the

Way they look at it is do when they want a fitbit device or do they want an apple watch an apple apple watch you know can do so many functionalities that can kind of kind of combine with your phone and whatnot fitbit scan to do a lot of those things but not as much as the apple watches so although the apple watch’s traded a premium for where some of the fitbit

Devices are a lot of people look at it as okay an extra 50 bucks or hundred bucks it’s what is you know worth it to splurge on the apple watch versus having a fitbit so that has put fitbit in a very very tough competition it’s not only apple’s the only one that’s competing in the space there were a lot of different competitors in the wearable space but the apple

Watch this has been a major major dental it’s a business you could look at where fitbit’s numbers we’re going up until the the apple watch came out the first series and then as soon as that first series apple watch started selling actually on shelves and whatnot the the fitbit numbers had just gotten worse and worse and worse so that is a big issue with this talk

And that’s why it’s honestly down here at a five-dollar level all right the latest quarter fitbit reported they reported a loss of 22 cents a share versus 24 cents forecast by thomson reuters the revenue came in at 299 million versus 285 was forecast analysts had projected for quarterly revenue of 285 million so that was a nice beat there all right or nearly a

20 percent year-over-year sales decline so keep in mind although they did beat what analysts were expecting that’s still a 15% drop year-over-year alright now also they did have some trouble in some big markets okay so europe middle east and africa revenue plummeted 39 percent year-over-year alright the us revenue only dropped 8% alright so that’s still not a good

Thing for the asia pacific market was a bright spot for the company revenue increased there about 66 percent year-over-year so that’s really the only market that’s really growing for this company right now so fitbit it sits at a stage right now where it’s in a very very tough position because they’re competing against apple and that’s a really tough competitor and

Samsung has got a lot of products out there as well you know with a lot of the samsung gear products and whatnot so we’re gonna have to see can they compete in a serious way with apple over time or is this just gonna be a company where people just go you know flood over the apple watch maybe they get a fitbit for their first device but then they’re like okay if i

Want a second device i’m getting apple watch that’s the issue for fitbit so we’re gonna have to see how they compete over time interesting stock big opportunity because the wearables are not going away they’re probably gonna get more popular over time it’s good question is his fitbit going to be around to see that that popularity in the future guys stock number

Three up here i thought under a $5 stock is chesapeake energy so chesapeake energy right now is a $4 and 48 cents stock per share this one has around oh technically this one actually is a biggest market cap on the list okay this one was just slightly bigger than singha great around a four billion dollar market cap here and this company is now a very profitable

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Business after they were losing a lot of money so chesapeake energy if you didn’t already know they engage in the acquisition exploration and development of properties for the production of oil natural gas and natural gas liquids from underground reservoirs in the united states alright they got a lot of different plays around the united states for producing this

Oil and natural gas alright now this is a stock that you’re gonna notice it has fallen off a lot over the past few years back in 2014 this was a stock that was a 2530 dollar stock and you know now like we talked about it’s a $4 and 48 cents stock it has dropped significantly prior to the recession this was a stock that was a 60 plus $1 stock all right but the issue

We’ve had as we’ve had very weak natural gas prices over the the past few years that has hurt chesapeake and oil prices have also been very weak alright now there are some people saying well there are a couple of things to be bullish on in regards to chesapeake all right though some people are saying they’re gonna be ramping up oil production and actually get them

To you know a sustained level of growth because obviously natural gas trades out a way lower price that then oil does in the end and they’re also saying you know with all the debt reduction that has gone on their net debt to ebit ratio they’re trying to get to a 2 x ratio there if you don’t already know chesapeake have loaded up on a massive amount of debt prior

To kind of the weakness in some of these prices in 2014 they loaded up on a ton of debt and what that ended up doing is that ended up putting the company in a very very poor position when all of a sudden oil prices dropped significantly starting in 2014 and going forward and also natural gas prices were super weak because they were loaded up on debt awesome they

Were losing tons of money and they had all these debt payments so what they have to do is they to sell off a massive amount of their properties that they own so it’s a much much smaller company than what i used to be all right now chesapeake for its latest quarter swung to a net loss of 40 million dollars or four cents a share in the quarter ended june 30th from

A profit of 470 million of 47 cents a share in the same period a year ago excluding non-recurring items such as a 168 million dollar loss on oil natural gas and natural gas liquids derivatives adjusted earnings per share came in at 15 cents above the average analysts estimate of 14 cents no revenue fell to 2.2 million dollars from 2.28 so just a very very slight

As a small number there just below the fact set consensus of two point two six all right oil natural gas and natural gas liquids revenue dropped 23% to 982 million missing the consensus just a bit there well the 27 percent jump in marketing revenue was you know well above what analysts have expected there all right so the question for chesapeake now is where our

Natural gas prices going where oil prices going if they can get more on on the oil side in oil let’s say can stay around a 65 to 85 dollar barrel level should be a very profitable business all right however if natural gas is weak and if oil price you know drops back below a $60 level it’s a very unprofitable business model in the united states of america right in

The middle east they can make money you know some say they can make money all the way down to $40 a barrel in the middle east but here in the united states of america if you’re drilling here if you’re fracking over here united states you really need a 60 plus dollar number on oil if you’re gonna make money in the end so if natural gas can continue to strengthen if

Oil can continue to strengthen as far as the pricing goes i’m just a company that’s gonna make a lot of money okay but if those prices stay low guys it’s gonna be a company that loses a lot of money and you know they’ve fought off a bankruptcy great you know this is a company that you when you looked at their balance sheet and how weak their earnings had became as

In terms of they were losing like a billion plus dollars there’s a company you thought maybe could go bankrupt the management team did a great job saving this company so we have to see where it goes over time can there’s ever twenty dollars stock again there’s gonna be a five-dollar stock forever our eggs already guys stock number four is a very exciting company i

First came across this company about a year ago or so in their technology they have is a possible big life saver for a lot of major events out there all right this stock is named patriot one technologies the company out of canada they have a pretty small market cap in this company about 186 million so it’s definitely not a big company at all patriot 1 technologies

Is a technology company that engages in the commercialization of a system to detect concealed weapons utilizing radar technologies all right this is really cool stuff guys so one of the hotels out here in vegas is using this alright the westgate and it’s gotten a lot of publicity and basically the system how it works place is a radar system that can basically

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Detect you’re on your body if you’re carrying a concealed weapon or not so instead of let’s say you go to this place in that place let’s say you’re on the strip right and you’re going from hotel to hotel for instance you don’t have to get patted down because no one wants to get patted down every you know hood every property they go to right you won’t attend different

Properties and every single time you gotta get patted down in case you have a weapon or something like that it’s a really cool technology that could potentially save a lot of lives if this was used and let’s say the mandalay in that whole situation the good chance that of that whole massacre never happens ok if they had this type of technology because they were you

Know all those boxes going in carrying all those weapons would have been seen in the in the radar or whatnot all right so the westgate is using this out here in vegas and for the past year it has been part of a pilot program with a security company called patriot 1 technologies so if you have essential security you have all your sensors around the resort so you

Need a lot fewer people to man a smart system that’s another reason why people are excited they can actually bring down cost as well alright though the west gate would not provide specifics of patriot 1 system we’re told this is a news organization talking has been successful the system is also being tested on several campuses around the country and developers

Are convinced it could make a difference of you know obviously the the massacre that happened out here last year in vegas here ok well certainly we’ve looked at that and other in it’s not just in the us but around the world because that shapes our development we want to prevent precisely those type of attacks all right so you can think about this potentially

Being used around you know college campuses being used around you know big functions concerts those type of things you know massive resorts anything where you know there’s gonna be a ton of people together and there’s the risk of something going wrong there so pretty pretty interesting system there guys let’s get into the last one stock number five and the last

One up here is trans entrants all right this ticker symbol tr xc is though just over a 1 billion dollar market cap company all right trans entrants is a medical device company what it engages in the research development and seal of the medical device robots to enhance invasive surgery the company offers sin-hye systems a multi-port robotic surgery system which

Allows up to four arms to control robotic instruments in a camera right so pretty pretty exciting stuff there it’s almost like a intuitive surgical which is a massive company now they do a lot of those robotics that or that you know can be used in surgeries and whatnot and the way these are you know hiked out there and whatnot is they can do surgeries with a lot

Less invasive procedures then then what a human can do okay which makes recovery times better which makes ultimately the surgery process better for the patient for the doctor and everything across the board so that’s why a lot of hospitals and what not a lot of surgeons are starting to use some of these robotic instruments all right so their latest update here

They announced basically the four sin-hye system sales in the third quarter 2018 so that’s good these are very expensive systems so for sales is is decently they’re coming around all right for a luminary an audit at revenue of 5.4 million now once again is a company that’s doing very small amounts of revenue in terms of the the you know current market cap but a

Lot of people are looking at this and saying well you know wait till a few years i’ll be doing 50 million and five hundred million dollars in sales so we’ll have to see what happens with that preliminary unedited cash and cash equivalents came in at 82 million so he still quite a bit of money on balance sheet so if they need to take big losses here they can still

Continue to take losses over the short term here on september 6 2018 the company announced that it filed its application for fda 510 k clearance for its n heights ultrasonic instrument system ahead of expectations the company expects to achieve in fda 510 k clearance in the first quarter of 2019 and that’s a big thing for the company potentially out there guys

That’s one of those companies that people are looking at and saying you know this was this company has an opportunity to grow into a ten billion dollar 20 billion plus dollar company over you know let’s say the next decade the question is once again is this company gonna be able to execute on a high enough level to get there are they gonna be able to compete with

An intuitive surgical in that space which is a very very tough competitor guys so i hope you enjoyed this as always once again let me know in that comment section if you guys want to part two out of there are five other stocks i can mention that are in that $5 or below level let me know if you guys enjoyed this they hit a thumbs up if you did thank you for watching

And have a great day

Transcribed from video
5 STOCKS $5 OR LESS (PART 1) By Financial Education

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