Stocks to Buy under $1

Robocopy - I'd buy that for a Dollar

Mastery ventures into volatile penny stock territory with a few buys under $1.

If only you could buy 1,000 shares of some wonderful stock that is under one buck and 3 years later its worth a fortune.  Mastery puts it all on the line and recommends a few stocks under $1 that include THQ Inc. (NASDAQ:THQI), Jones Soda Co. ( USA ) (NASDAQ:JSDA), and FuelCell Energy, Inc. (NASDAQ:FCEL).


These three stock picks are volatile, risky and could be de-listed if they don't get back above $1 in due time.  The only exception to this is FuelCell which is at $1.48 but started 2012 at 90 cents. First off the Masters don't buy stocks under a dollar that have been delisted from the major exchanges.  If you are playing with the OTC BB penny stocks be prepared for an entirely different animal.  That being said let's kick off things with the strongest candidate of the three.

FuelCell Energy (FCEL) has gone on an incredible ride since the start of the year rebounded some 70%.  However in the past 12 months FCEL is down 28% yet its never recovered from its $10 2008 share price. FuelCell is in the business using high temperature fuel cells to generating clean electric power done in the U.S., Canada, South Korea, Germany, and Japan. Over the last six months, insiders were net buyers of 180,000 shares, which represents about 0.14% of the company’s 128.68 million share float.

Earlier this week FuelCell raised $34.5 million from a public offering of 23 million shares of common stock.  The company offered the stock at $1.50 per share, with a net to FuelCell of $32.1 million after expenses. FCEL is up 4 cents today at $1.52.

Poor Jones Soda (JSDA) is back to 45 cents and not much has changed since we talked up the company on March 9th.  The stock has dropped another 5 cents since we last checked in, recall that  (March 8th) Jones Soda reported a Q4 2011 loss of to $2 million (6 cents per diluted share). That's more than their $1.8 million (loss of 6 cents per share) in the same quarter a year earlier.  The good news is revenue increased 9% to $3.4 million from the year-earlier quarter.

On March 8th we said:
Mastery believes good things could happen to the company in the long run however it requires a huge leap of faith as a shareholder. ... We like the stock at 40 Cents and will wait to buy as such.

We'll hold out for another 5 cents.

File:Saints Row The Third box art.jpgWe mentioned THQ Inc. (NASDAQ:THQI) a few weeks ago and the stock has done nothing since then.  THQ traded in the $30 range back in 2007 but has since been reduced to a penny stock.  THQ has had some success with its Saints Row 3: The Third video game.  The company reported on Jan 25th Saints Row 3 had shipped 3.8 million units globally and are expecting to ship between five and six million units lifetime on the title.  However THQ shares went from 75 cents on Feb 2nd to 53 cents the next day on Feb 3rd after the company's 2012 guidance missed the Street. 

Bottom line: All these stocks are a gamble but they are fun to throw some discretionary bucks at.  Let it ride with Mastery prefering in order of 'best bang for your buck': FCEL, JSDA, then THQI.