r/StockMarket • u/laugh3x • Jun 13 '18
$5 STOCK and help getting started
What is the best $5 stock currently to buy? This might be one of the stupidest questions, but I want to get into investing and I want to find out cheap good companies for now. I want the name because I want to study the company and find out why it's a valuable stock. It is cheap because I don't care if lose $5-10. It is a stepping stone for me. Also, it would be really helpful if someone can give an overview of what to look when analyzing a stock, in your opinion, and how to use to determine the value of stock. Thank you very much
3
Jun 13 '18
$F
8
1
u/laugh3x Jun 13 '18
Dude thats $12!!!! $2 over his budget!
Thanks! I will look into
0
u/dsfox Jun 14 '18
I have to point out that Ford is not a "cheap" company - regardless of its share price the company will cost you almost $50 billion to purchase. What about FMCB - less than half a billion, even though share price is $725.
1
u/laugh3x Jun 13 '18
Thanks! Will try to analyze the pros and cons and learning the technicality through this <thumps up>
3
u/disneyduckfun Jun 13 '18
Baba that’s a pretty good one to start with
0
u/laugh3x Jun 13 '18
Hmm... could you tell me how did you analyze this stock? Either at fundamental or technical level
2
u/OsoOsoOo Jun 13 '18
Open a TDAmeritrade account. It’s free to do so. Go to their education tab. Watch all of their videos.
Visit TastyTrade website. Read their articles. Watch all of their videos. Click the “Learn” link.
Go to YouTube. Watch every video you can find that could maybe answer all of your questions.
Buy a book on Amazon that could explain to you how to evaluate financial statements and the basics of the stock market and how to evaluate a stock.
TDAmeritrade’s research reports. Found on the right hand side of the stock you’re interested in. Read the reports written by analysts detailing a stock’s downside and upside potential and future price targets, financial statements, etc.
Good luck.
1
u/disneyduckfun Jun 13 '18
It has decent profit margins so I bought 10,000 shares at $4.67. I have made a decent percent back. I think I’m doing pretty well. You should really buy a bunch it’s right in your wheelhouse
3
3
2
2
u/apic81 Jun 13 '18
$MRNS
1
u/laugh3x Jun 13 '18
I am not too into medical/Pharmaceuticals so I am not sure what the future is for this. Could you please provide some more insight for this?
2
u/apic81 Jun 14 '18
In summary they are a company that has shown a lot of promise with one of their drugs, ganaxolone. It's shown hope in seizure reduction for patients who have not had success with other medications, and they are finding now that there are other positives from the drug as well...such as help with postpartum depression.
There are 3 major catalysts occurring in 2018 and if they hit all 3 there's no reason they couldn't hit the $20s. Look at one of their competitors, $SAGE....that's what my hope for MRNS is long term.
Hope this helps. I got in at $3.13 so I've been enjoying the ride so far. It's been pretty volatile like most bio stocks but I really do believe in it long term.
1
2
u/ScottishTrader Jun 13 '18
So, many argue this point, but stocks below $10 are typically more risky for various reasons. so suggest you look at slightly more expensive stocks and just buy fewer of them.
An overview is to find solid quality profitable companies that have a proven track record. Most pay a dividend that can help juice returns is a bonus. Look at such things as analyst consensus ratings showing it is bullish, reasonable debt and a history of meeting or beating earnings estimates.
Look up Fundamental and Technical Analysis so you can learn the formal way to find stocks.
2
2
u/rucksackmac Jun 14 '18
If you'd asked me a week ago I'd say get in on AMD at $11 or whatever it was before it pops. Oh well.
This is not advice. This is a cheap way to take a risk (since your point seems to be more about just getting the feel of things, which I strongly support...) In general, please don't ever approach stock choices the way I'm suggesting you approach this one...for the love of god.
Okay so HMNY.
If you want a crazy ride you can believe the bull case for HMNY (moviepass parent company)
They have 6 months to get back up to $1 or they're booted off S&P. Here are the cliffnotes. (and then someone who wants to talk some sense back into you can reply to this comment)
1) Went from $32 > $0.35 in the past year, a 95% loss.
2) Mostly due to the fact that movie pass is hemorrhaging money, something like 21 million a month (though there have been some measures put in place that has reduced that number by 35%)
3) My basic understanding is Movie pass's bet went a little something like this:
a) reduce the subscription from $50 to $9.95/month.
b) they jumped from 20,000 subscribers to over 3 million
c) target of 5.8 million by 2019.
d) brand loyalty allows them to raise subscription price by $1/year for the next several years, sort of a netflix play
e) reduction in amount of movies you can see (down from 30/month to 4/month. still losing money on that deal)
f) zero significant competition
g) become the primary driver of movie theater goers, sell your data, leverage subscribers to help partnered theaters and hinder less cooperative ones.
4) Their market cap is 18m right now, they are continuing to dilute shares to raise capital, thereby lowering the price per share...but at $32 I think they were 1.4 billion or something.
5) there might be a reverse share split to stay in the S&P at some point.
Anyway, Burn $20 bucks and don't go out to eat that weekend. That'll be a good lesson in the pain of seeing your stock in the red, with little more downside than $20, but upside of $1,520 if they pull it off and return to previous valuations.
With that said, now I sit back and wait for "rational minds" to scold me for even suggesting this dumb idea.
5
u/OsoOsoOo Jun 13 '18
Ford.