Posted
Aug 27 2009, 07:17 AM
by
Louis Navellier
While the stock market has been on a terrific run since March, most of the big gains have been tilted toward stocks in one specific target price range. The effect has been dramatic.
Tim Hope, who works for my research firm, ran a survey of all 4,000
stocks in the Navellier universe, rating them by deciles (i.e., 10%
segments), sorted by 2009 year-to-date performance over the last seven
full months (December 31 to July 31). The weakest performance was in
higher-priced stocks, while the best performance was in one particular price point -- stocks average just $10 per share at the time of purchase. This segment, which includes 400 stocks, scored gains of 232%.
Bing: More on low-priced stocks
For example, let’s take a look at Citigroup (C). At one point in early March, the banking giant dropped below $1 a share. Just the other day, the stock hit $5 to mark a 400% gain in less than six months. Bank of American (BAC) is up over 600% from its 52-week low. It’s not just banks, either; Ford Motor (F) got as low as $1.50 and recently traded as high as $8.86.
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