Given the ever-growing popularity of tech companies, it’s no surprise that their shares are worth a lot. For one paper security of such giants as Amazon and Google, you will have to pay more than $ 1,000. Nevertheless, smaller companies offer their shares to investors at a more attractive price.
For example, ServiceNow papers cost about $ 100 apiece. While the phrase “price is what you pay and value is what you get afterward” is true, there are benefits to buying cheap stock. Companies develop and their stock value increases over time.
So, if you combine the potential of the tech sector with the financial benefits of low-cost stocks, you have a very powerful weapon indeed.
Fortunately, there are a number of such stocks available for investors to buy. There are small tech companies with a strong upside potential that can be bought for less than $ 15 apiece. There’s no denying that there is some risk involved in investing in new start-up campaigns, but there is also a chance that you will largely benefit in the future.
For investors who are not afraid to take risks, Aaron Levitt of InvestorPlace has compiled a list of five companies. All of them work in the field of high technologies and offer shares for purchase at a low cost. Below we will tell you about each of the companies.
Cost of one share: $ 5.10.
Fitbit is an American corporation, manufacturer of consumer electronics and wearable devices for fitness and health with the same name. The company’s main product line includes bracelets (fitness trackers), as well as smart Wi-Fi scales. The company’s stock has been in free fall for much of 2017 and 2018 as the growing demand for wearables has fallen short of expectations. In addition, the entire sector fell a victim to the frightening KCword – commoditization.
So why should investors be positive about Fitbit’s future? Among the reasons are the development of healthcare, innovations in the field of medical insurance, and low prices for the company’s devices.
Last year, representatives of insurance company John Hancock announced that the company would no longer issue traditional life insurance policies, but instead would issue only so-called interactive policies tied to wearable devices. Corporate America is keeping up with the trend as more companies are starting to offer health insurance benefits to employees who use fitness trackers.
In general, Fitbit has a lot of room for growth and development, especially thanks to its well-known brand and huge active user base. Already, the company’s sales are going to be just fine. So don’t miss the moment and add the company’s stock to your portfolio while its value is low.
#2. Glu Mobile
Price per share: $ 8.84.
122% is an excellent annual return for any company, especially if its business is in the development of mobile games. Plus, Glu Mobile’s growth in 2018 may be just the beginning as the company’s business is finally paying off.
Mobile games were hugely popular a few years ago, but over time the demand began to fall, so Glu Mobile and its competing companies got really hurt. However, the company is doing well now. Its management is to thank for, who took the right steps in a difficult period. Glu Mobile has started to focus more on its wholly-owned games.
This allowed the company to generate higher margins from in-app purchases and downloads. In the fourth quarter, the company has already managed to achieve positive cash flow.
Over the past year, the company has been able to reduce its debt burden and improve its balance sheet. The growth of shares was not long in coming. It is also important that Glu Mobile’s business is still solid – it is expected to release several hit games in the coming quarters.
At the moment, the value of Glu Mobile shares is less than $ 9 per share. The stock trades at a P/E of 26.
Price per share: $ 4.95.
Ask surrounding people what they think of Nokia, and most likely, the majority will answer something like “its days have passed long ago.” It sounds fair, but only when it comes to the company’s devices. Nokia continues to be one of the most important technology companies in the wireless world. The reason for this is one letter and one number – 5G.
As Nokia’s leading position in the mobile phone market declined, it made two smart acquisitions: the company bought out Siemens’ share in the Nokia Siemens Networks joint venture and the assets of Alcatel-Lucent. Thus, Nokia has become a manufacturer of equipment that transmits all types of data, including voice and video, to end-users. Who cares what device it all works on?
Smart decisions of the company’s management had a positive effect on the dynamics of its shares. Current 4G networks can no longer cope with the streaming video, mobile commerce, and heavy gaming that more and more users are installing on their smartphones and tablets. Because of this, telcos are now spending a lot of money to upgrade their networks, Nokia is winning at the expense of.
Sales of the company continue to grow – last quarter they reached € 5 billion, with the majority coming from equipment for 5G networks.
Nokia shares are currently valued at approximately $ 5 per share. Considering the company’s great growth potential, as well as a 3.8% return, its securities will be an excellent addition to your investment portfolio.
Price per share: $ 7.13.
Sometimes, partnering with a larger company can help a small company grow. For TeleNav, friendship with Amazon has become extremely profitable. Telenav is a provider of smart car systems, including location-based services, perfect for Amazon looking for ways to incorporate its smart assistant Alexa into as many devices as possible, and of course cars.
Positioning systems developed by TeleNav provide users with the most intelligent, secure, and personalized user experience. Such systems are more than just GPS. They use artificial intelligence and voice assistants and provide advertisers with access to their systems.
TeleNav creates databases that Amazon or other companies could potentially process and use in the future. Companies partnering with TeleNav are given a platform on which they can display advertisements and informational entertainment services in real-time – a win-win for them.
TeleNav is doing well, with the company continuing to grow its profits and at the end of last quarter earnings came out ahead. It’s not hard to guess that the company’s potential is enormous. Nevertheless, its shares are currently trading at a low price – only $ 7 per share.
#5. 3D Systems
Price per share: $ 8.73.
One of the most significant trends in manufacturing and healthcare is 3D printing. The possibilities of creating three-dimensional objects from metals, plastics, or even biopolymers excite the imagination. 3D printing has gone from a niche hobby to widespread production technology. The locomotive on this path was 3D Systems.
However, the company’s shares are currently valued much less than before. If at some point the price per share of this company was at the mark, after which it would become triple-digit to comma, now you can purchase it for about $ 8.75. Buying this paper security at this price can be a good long-term investment.
First, the company’s business is growing. Last year, its revenue increased by 6.4% on an annualized basis, in absolute terms, it reached $ 687.7 million. At the same time, the company was able to profit from technology development in several areas where 3D printing is applicable. As a result, 2018 adjusted earnings per share were $ 0.15, while in 2017 there was a loss of $ 0.02 per share. Thus, as new prospects opened up for 3D printing, the company’s economic situation improved.
At the same time, the company has yet to take advantage of the prospects that exist in the field of health care, including dentistry. Prosthetics, implants, and braces could potentially make 3D Systems a lot of money.
The fall in the company’s shares is due more to the fact that they are simply losing their initial momentum, but over time, the upward trend will surely recover.